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How much can a vet borrow on a commercial loan?

Posted: Sun Feb 14, 2016 11:00 am
by moria
Hi,

I am an experienced vet living and working in Beaufort. I earn over $100k a year and I have just started my own business, which I am currently running at home / on call. My estimated annual income is over $150k and that is in my first year itself.

I have recently found a great commercial property not to far from the city and I want to buy it and set up my business there. How much are veterinarians allowed to borrow on a commercial property mortgage?

Re: How much can a vet borrow on a commercial loan?

Posted: Mon Feb 15, 2016 8:01 am
by Otto Dargan
Hi moria.

Welcome to the forums.

Since you're a veterinarian, and an experienced one at that, you can borrow up to 100% of the business costs / property value with a veterinary practice loan.

Lenders consider vets to be strong borrowers and as such, they can allow you to borrow up to 100% of the value of a commercial freehold property or the value of the business (leasehold) including fit-outs and equipment costs.

Please note that the maximum loan term of this loan will be 25 years for freehold property and 15 years for leasehold or as per the lease agreement.

Additionally, if your application is very strong, you can also get special interest rate discounts through some lenders.

Hope this answers your question. Would you like to know the lending criteria on this?

Cheers,
Otto

Re: How much can a vet borrow on a commercial loan?

Posted: Mon Feb 15, 2016 12:09 pm
by moria
Hello Otto! Thank you for replying in such a short time. I did not realise that there was a mortgage product specifically targeted towards us vets. And yes, I would definitely like to know the lending criteria.

Re: How much can a vet borrow on a commercial loan?

Posted: Tue Feb 16, 2016 9:30 am
by Otto Dargan
Hi moria,

In order to qualify for a veterinary practice loan, most lenders will require that you meet the following lending criteria:
  • You'll need to prove your income through your most recent tax return or business activity statement (BAS) if you're currently contracting.
  • You'll need to prove that you're a qualified veterinarian registered with the Australian Health Practitioner Regulation Agency (AHPRA).
  • Generally, banks will require that you have at least 2 to 3 years experience in an operation that matches the size and patient capacity of the commercial property you intend to buy.
  • You must provide a business plan which includes your own SWOT (strengths, weaknesses, opportunities and threats) analysis of the location including a competitor study and your unique selling point.
  • If you're quitting your job to run the practice full time then some lenders may require you to have income protection and life cover.
We have mortgage brokers who specialise in commercial property loans for veterinarians. You can discuss your loan requirements and personal situation directly with one of our experts by calling us on 1300 889 743 or enquire online and we'll contact you within 24 hours.

Cheers,
Otto

Re: How much can a vet borrow on a commercial loan?

Posted: Tue Feb 16, 2016 6:41 pm
by moria
I do believe I can meet all of those requirements. I have one more thing to ask of you - can you give me any tips on preparing a good business plan so it can be accepted by the banks the first time itself?

Re: How much can a vet borrow on a commercial loan?

Posted: Wed Feb 17, 2016 8:46 am
by Otto Dargan
Hi moria,

You can consider the following tips when you prepare your business loan proposal / business plan:
  • Set clear goals - A clear set of goals will be beneficial for both yourself as well as the lender.
  • Proper research - Properly researching your business, market and the economy can help you use accurate facts and figures to help you qualify for a better deal.
  • Language and structure - Lenders may not understand industry jargon so make your business plan simple and easy to understand. Additionally, avoid a complex structure so lenders don't get confused.
  • Plan your presentation - A strong business plan may look weak if you don't present it properly. On the contrary, a relatively weak business plan may look much better if you can impress the lenders through a perfect presentation.
Since we have mortgage brokers who specialise in business loans, commercial property loans as well as mortgages for vets, we can help you prepare your business proposal and apply as well. Please feel free to call us to discuss things directly.

Cheers,
Otto

Re: How much can a vet borrow on a commercial loan?

Posted: Thu Feb 18, 2016 9:55 am
by moria
Thanks again, Otto. You have really been very patient and prompt with your replies. I will definitely call you guys to go through with all this. I went through your website and it has a lot of information I did not find much elsewhere. I will continue to browse through and will call as soon as I am able. Good day :)