To buy a financial planning practice, you'll have to send in your details on the financial position of the portfolio you want to buy and a robust business plan along with your loan application.
Although lenders view each application on a case by case basis, here are some general guidelines that are usually applicable:
- You can borrow up to 70% of the purchase price or 2.25x recurring revenue or 3x earnings before interest and tax (EBIT) of the client portfolio you want to buy, whichever is lower.
- You can borrow up to 70% of the purchase price of a standard commercial property as long as it is freehold.
- You can [rul=https://www.homeloanexperts.com.au/busi ... ness-loan/]refinance[/url] existing practice debt.
- Working capital is available, which includes business overdraft facilities and fit-out finance.
- You're required to have at least 5 years professional experience with at least 3 years in running a practice, and a practice business plan with profit forecasting may need to be provided.
Cheers,
Otto