What Is Professional Practice Finance?
When it comes to funding for a business, no two companies are the same. This is even more apparent when it comes to finance options for professional service industries as opposed to more traditional types of business. We understand that professional practices, including lawyers, accountants, dentists, and other professionals, face unique challenges and needs that must be considered when searching for the appropriate funding requirements.
The general perception of firms such as solicitors or lawyers is that they generate a lot of income, and while this may be true, these firms also face hefty and often crippling overheads. Cash flow is not always predictable or consistent, whereas costs such as staff, rent, and technology need to be paid for every month without fail. The trick to being successful in business is often a balancing act between waiting for monies owed while being able to sustain and grow the business.
Practice Professional Industries Are Often Highly Competitive
Another factor that needs to be taken into consideration is that in many professional fields, such as the medical field, competition is extremely high, so there is consistent pressure on a business to invest in the latest technology and retain high-quality staff. Rather than having to deal with the constant ebbs and flows of the company and the considerable stress that involves, professional practice finance is designed to smooth the peaks and troughs, allowing for a more measured approach.
How Is Your Borrowing Capacity Determined?
This is usually determined based on the sector in which you operate and the lender handing out the loan. For example, a dental business might be able to borrow money based on its valuation (much like a mortgage) or also on its profits. Each lender will have its own guidelines, which will also vary depending on a range of factors, including the age of the business, the type of practice, and the credit profile of your company. The key factor to always consider is serviceability to ensure that any debt taken by the business is affordable.
AW Capital Can Help You To Identify Your Best Finance Options
The good news is that there are a plethora of different practice loans available to professional companies, which are often seen as a much more secure type of business by lenders. If you are visiting this site because you are contemplating your finance options for the company, then it is a quick and easy process to book an appointment with one of our friendly, helpful, and knowledgeable advisors. They can go through all of the professional practice finance options available to you and discuss the various lending terms in order to help you make the best borrowing decisions for your circumstances.
AW Capital staff are there to help, but we never put any pressure on our clients. Our policy is to provide you with all of the various options and then let you, our customer make an informed decision in your own time. This is what sets us apart and has helped us build a reputation as the friendly and helpful professional practice finance experts.
We look forward to working with you and helping you focus on building your practice.
Tel: 0333 772 6165