Practice premise finance is a trending topic, as medical practitioners look for more security and long-term asset appreciation in their practices. Despite this interest however, understanding what this involves, how it is different to buying the practice itself and why you may want to purchase your practice premises can be confusing.
To help you make sense of the noise and understand the ins and outs of practice premise finance, we sat down with our resident commercial expert Scott Hutchinson for his explanation. This will be a two-part article series, so look out for the next article that will provide greater detail on the benefits of purchasing your practice premises.
Understanding practice premise finance
Practice premise finance is essentially finance required when purchasing the physical premises that you operate your clinic out of, whether that be an existing building or a plot of land to construct a purpose-built facility. This could be a suite for a dentist, an existing residential building for a doctor, rooms for a dentist or land to build, allowing you to secure the location where you will greet and treat your patients. Scott points out the importance of viewing this as a long-term investment rather than a cost, ensuring that the premises you choose aligns with the growth and evolution of your practice.
Purchasing premises vs. the practice: What's the difference?
As Scott explains, buying the premises means you own the actual real estate - a tangible asset that can appreciate over time and provide security long-term. Acquiring business rights to the practice, however, means you purchase the legal entity that runs the clinic only and gain access to things like patient lists, the business name and other associated assets.
What this means is that if you want to purchase both the practice and the premises it resides on, two transactions need to take place – from a lending perspective, these transactions are fundamentally different. Scott advises that a lot of our clients purchase both at the same time (when that is an option) and it’s something that we have a lot of experience with at Credabl.
Why Credabl for practice premise finance?
Partnering with Credabl to purchase your practice premise means getting more than just financing - you get a team that only operates in the medical finance space, giving us deep insight and knowledge to provide the best finance solution possible. Whether you need 100% finance, have a deposit, or want to purchase the property in a trust, super fund or business, we can assist.
In our next article, we will dive into the differences between purchasing vs renting your practice premises and the benefits that purchasing can have. If you are ready to take the next step, or want to know more about anything in this article, reach out to our team here, or speak to Scott or any of our Credabl consultants on 1300 27 33 22.
