Medical practice loan

Hi PCers,
Does any brokers here do medical practice loans including fitout + equipment, purchase of medical suite etc or have any recommendations?

We currently have quite a lot of residential loans + 2 young kids + both husband and wife working part time.

Not sure if getting medical financing is feasible or we'll need to liquidate our IPs first.

Thanks!

 

You have tons of options as a medico which include:

a) 90% no LMI on resi property (ensure loan is a separate facility and not a top up)
b) unsecured loan of up to $1mil (servicing being the only restriction) 15 year loan term, IO 5 years and rates of circa 6.80%. Loan is technically secured against billing ABN.
c) Traditional asset finance lending some lending would be full app and some lending depending on the equipment can be done lo doc (lo docs are cheaper in asset finance world unlike resi/comm world)

As a medico you also have ability to work off projections.

 

We acquired IPs when we both actually had decent income. As we are now part time, our combined annual income is only 150K. We have >2mil in loans.

Projections is difficult as currently only doing public work and looking to setup a private practice.

Have a feeling we won’t be able to take on anymore loans...

 

The projections are based on the practice you are setting up so like anything is going to come down to the numbers. These projections would need to be prepared by an Accountant and would need to somewhat correlate with the overall picture.

So by this I mean a) the income has to correlate with the profession (a GP vs Dentist vs Optometrist vs Radiologist, etc and b) has to be inline with your background and income (its a hard sell if your income has been say $200,000 for the previous 5 years and now you want the lender to work off a net profit income of $1mil.