| Straight from the owner's
mouth...
After 18 years of owning a 50% interest in a general dentistry practice with
a partner, I decided to branch out on my own. My goal was to relocate my share
of the practice to a new state-of-the-art facility that would give me the opportunity
to take my practice to the next level. After a long search I found the perfect
space to lease just 7 miles away - 3,200 square feet with large picture windows
overlooking a pond and a forest preserve. My new challenge was to come up with
the $500,000 needed for construction and dental equipment costs. Given that
most of my non-dental practice assets were tied up in my house, real estate
investments, and retirement accounts, I needed to find a lender who could understand
the value of my existing patient base and who could understand what I could
accomplish with the move. My accountant recommended that I get in touch with
ColeTaylorBank because they have an entire department that works exclusively
with dentists and other professional practice owners.
ColeTaylor's bankers developed a creative
financing package that was well suited for
my needs. Essentially, I financed 100% of the
$500,000 needed to make Grand Opening a reality.
ColeTaylor provided me with a home equity line
of credit at Prime minus ½% to fund
15% of the project's cost and to provide liquidity
going forward. Cole Taylor then structured
a seven-year fixed rate term loan to cover
50% of the project cost and they worked with
the SBA in providing a 10- year fixed rate
term note at 4.95% to cover the remaining 35%.
The "interest only" payment schedule
on the home equity line coupled with the seven
and ten- year amortizations on the fixed rate
notes made the total monthly debt service affordable
and practice cash-flow sufficient enough to
support my personal financial needs.
In addition to great rates and payment terms,
ColeTaylor helped me prepare a pro-forma business
plan. ColeTaylor's loan underwriting process
made me think about what I would be doing differently
going forward and what effect those changes
would have on my bottom line. ColeTaylor also
got me thinking about some of the issues that
might come up in the transition. Based on certain
assumptions, my banker and I mapped out my
pro-forma production goals and we developed
a budget for my expenses going forward. At
closing, ColeTaylor delivered what they promised
in their original proposal letter with no last
minute surprises. Thanks to ColeTaylorBank,
I am building the practice of my dreams and
I now have 100% ownership interest in my own
destiny.
To
learn how ColeTaylor’s professional
practice expertise can make the critical
difference in the growth and prosperity
of your practice, please contact us by
calling 312-442-5130. Or Contact
a banker now for
more information.
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Housing Lender | Copyright
2007 | All
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