Refinances & Consolidations

You have spent years building equity in your medical practice. Now you need to lower your monthly bills or improve cash flow. A refinance or consolidation can free the finances you need to grow your practice. Allow us to perform a practice valuation to determine the equity in your practice, and then secure the best possible payment options and rates.

You can borrow up to 85% of the equity in your practice to:

  • Improve cash flow
  • Consolidate your debts into one monthly payment
  • Update your equipment and facilities
  • Plan for future expansion

Contact us to learn more about refinancing and consolidation opportunities.

What are the advantages of refinancing your debt?

Doctors can significantly decrease their monthly loan payments/interest rate by consolidating, refinancing and/or re-amortizing existing business debt. Doing so can provide a substantial increase in cash flow that a doctor can reinvest in their practice or enhance their personal income.

What are the different scenarios I might consider when making the decision to refinance my debt?

If you are a doctor interested in lowering your interest rate and/or decreasing your monthly debt obligation, refinancing is usually a viable option. In addition, doctors who are considering borrowing funds for equipment, tenant improvements, working capital, etc., should also consider refinancing possibilities.

How much should the rate decrease before refinancing makes sense?

This all depends on the doctor’s goal. Refinancing may make sense at any time if the doctor’s primary goal is to consolidate/re-amortize business debts in order to decrease monthly loan payments and increase cash flow. However, if the doctor is considering refinancing simply to lower the interest rate, he/she typically needs to decrease the rate by at least 1% or more to justify the time and cost associate with refinancing.

Can I receive cash (based on existing equity) when refinancing a medical practice?

It may be possible for you to obtain a small amount of working capital or secure additional financing for tenant improvements/equipment purchases upon refinancing. However, most lenders are unwilling to allow the doctor to “cash out” or take equity out of the practice in cash.

Can I include other debts when refinancing a loan?

Typically, lenders will allow business debt only in a practice refinance loan. It is smart to keep business and personal debts separate, and medical lenders are typically not interested in co-mingling the two. As a doctor, you could also run into issues with your accountant and/or the IRS if the practice is deducting interest on a loan that you used to refinance personal debt obligations where the interest would otherwise not be deductible, such as student loans (depending on personal income level) or personal credit card debt.

Does a refinance go through the same underwriting process as an acquisition?

Yes, but a refinance is considered to have a lower level of risk due to the fact that there is no transition of ownership taking place.

Is there any other action I should take prior to applying for a refinance or debt consolidation loan application?

Our only recommendation is to ensure you are prepared to articulate your refinancing goals and be able to readily provide all relevant personal and practice financial information.