March 01, 2018

Dental Practice

A successful dentist in Idaho started working as an associate at a practice. After about 6 months he had the opportunity to purchase the practice and the commercial real estate. Since he started as an associate the practice had increased production dramatically.

The issue that he was running into when looking for financing was that the banks were telling him there was not enough cash flow to service the debt. That is when he came to 1st Med Financial.

At 1st Med, we were able to analyze the practice and noticed a couple of things. Before he became an associate this was a one doctor practice (and that doctor was transitioning into retirement). We also noticed that when he took over the collections spiked. We were able to project out a full year based on the new production numbers. This new amount would be able to service the debt on the practice at a ratio that made the lenders comfortable.

Conventional Dental Practice Financing structured to purchase the practice and the commercial real estate along with additional working capital to help with the transition.

Closed: 03/01/2018

$575K DENTAL PRACTICE & COMMERCIAL REAL ESTATE ACQUISITION, 5.9% 10-YEAR FIXED TERM ON THE PRACTICE ACQUISITION ($350K LOAN AMOUNT), 5.9% 10-YEAR TERM / 25 YEAR AMORTIZATION ON THE COMMERCIAL REAL ESTATE ACQUISITION ($225K LOAN AMOUNT).