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Mortgage to buy an accounting practice

Posted: Wed Mar 09, 2016 6:12 am
by altair
Hi everyone here in the home loan experts forum,

I'm posting this thread to ask if there is any type of mortgage out there that I can get to buy an accounting practice. I'm working full-time as an accountant at the moment and I want to buy my friend's accountancy practice and manage it, and maybe eventually go full-on there. Can anyone help me with this?

Re: Mortgage to buy an accounting practice

Posted: Wed Mar 09, 2016 8:30 am
by Otto Dargan
Hey altair,

You can get an accounting practice commercial loan to buy your friend's accounting practice. Banks love accountants and can offer incredible deals to get your business.

Here are some of the standard lending requirements for an accounting practice loan:
  • You may be able to borrow up to 60% of the actual gross fee income or projected income on a leasehold property.
  • With wealth management arm attached, you can borrow up to 2.5x financial planning renewal income (earning before interest and tax) multiple.
  • The loan term is usually 10 years principal and interest (fully paid off).
  • The interest only period is usually up to 3 years (to be fully paid off).
  • You may need to provide a practice business plan / business loan proposal with profit forecasting.
If you would like to know more about this then you can check out our website.

We have mortgage brokers who specialise in accounting practice commercial loans and can help you set up your loan so it best suits your needs as you grow your business. You can speak with one of us directly by calling 1300 889 743 or by filling in our free online assessment form.

Cheers,
Otto

Re: Mortgage to buy an accounting practice

Posted: Wed Mar 09, 2016 4:27 pm
by altair
I checked out your links and I really like the home loan discounts that banks offer to accountants. I didn't really know that. I may just take out a home loan as well so will definitely call to find out more. Thanks Otto.