Today's Veterinary Business

JUN 2018

Today’s Veterinary Business provides information and resources designed to help veterinarians and office management improve the financial performance of their practices, allowing them to increase the level of patient care and client service.

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rangements may require a prepay- ment penalty, so ask the question. Additional expenses such as documentation fees — typically known as doc fees — can vary widely and should be considered when de- termining the total cost of the loan. Another fee that catches veteri- narians by surprise is interim rent. If the practice takes delivery of the equipment before the lease term begins, they might need to pay rent on the equipment. Practices can avoid the extra cost by accept- ing the equipment as close to the start of the lease date as possible. What is your real rate? "There's a tendency in the industry for not knowing the true rate, or APR [annual percentage rate]," Bednar said. The APR is a broader measure of the cost of a loan because it reflects all loan costs, not just the interest rate. Although the interest rate determines a monthly pay- ment, the actual total cost of the loan is reflected in the APR and tends to vary among lenders. Rep- utable lenders will provide the APR as part of their disclosure. The Fine Print "Minimum and maximum loan amounts for equipment vary by what the loan proceeds will be used for," said Jeff Holt, a senior consul- tant with PNC Bank's Healthcare Business Banking. "The amount that a veterinarian may borrow should be specifically tailored to the unique circumstances of the practice." Larger loans, like for start-up operations that need numerous pieces of equipment, are normally funneled by the lender through the Small Business Administration. The term length of most loans is 36 to 60 months but can be adjusted to accommodate circum- stances and the projected lifespan of the equipment. The equipment purchased is usually considered enough collat- eral for the loan. In the event the loan can't be repaid and alternate terms can't be negotiated, the equipment will be repossessed. Cleaning House When you apply for a loan, the lender likely will request your per- sonal credit score and tax returns for review. If the practice is estab- lished, you'll probably be asked to produce the business' financial statements, tax returns and possi- bly its business plan. "Sharing the business plan with a financial services provider will allow for a more robust set of recommendations to help the hospital utilize credit more strategi- cally," Holt said. Furthermore, the lender might confirm that your license is in good standing and that you operate as a legal entity in your state. It's prudent to do your own re- view before you apply to ensure ap- proval and the best possible terms. Verify that your financial statements are available and in good order. Make sure business and personal funds are not commingled. Many lenders will try to work out an agreement if the applicant's financial standing is less than stellar. "There are alternative solutions to consider in cases where the vet- erinarian's credit history has some challenges," Holt said. The good news is most lenders have a fast approval turnaround time, sometimes within hours. 3 Better Patient Care. Better Business. ™ Midmark Corporation, Dayton, OH, USA. At Midmark Animal Health, we care about clinic success. That's why we are committed to being the total solution for better patient care and better business. • Cabinetry and seating • Containment systems • Exam and treatment tables and tubs • Procedure and exam lighting • Lift equipment • Sterilization equipment • Anesthesia machines • Patient monitors • Dental Delivery • Digital X-ray Our commitment goes beyond our fully integrated product line. We'll be with caregivers every step of the way with top-notch clinical support and training. And from June 1,– August 31, 2018, we're offering rebates and special pricing on a broad selection of Midmark equipment solutions. To learn more, call 1-800-MIDMARK or visit: midmarkanimalhealth.com/TVB618 . Always there when you need us.

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