From growth to consolidation

Although it seems a long way off, preparing your savings for the next stage of your life and career is a smart move.

 4.5 minutes

You’ve worked hard to grow your practice. Now, you’re ready to consolidate those gains and ensure secure, steady development.

Before drawing up a financial plan, it's a good idea to research available products and their features, including access to funds and interest rates. It’s important to understand how everyday transactional accounts compare to savings and term deposit accounts and realise that, typically, no one product will meet all your financial needs; it’s a matter of finding the right mix for your circumstances.

Understanding the unique financial situations of health professionals

There are unique problems faced by a medical, dental and veterinary professionals wanting to consolidate their practice. Among them are making sure you have flexible access to your money to take care of any cash-flow blips. You want to earn maximum interest for your savings, and to manage your own money in a tax-effective manner.

There’s also the more general problem of finding a finance provider that understands how the cash flow of a medical specialist works.

With credit assessments, BOQ Specialist’s in-depth industry knowledge often works to the clients’ benefit. “Knowing so much about the industry and a clients’ potential means we’re able to assess a deal based on future earnings,” says BOQ Specialist’s head of deposits and savings, Chris Reid. “That’s unique to us, as a business specialising in the healthcare professions.”

What’s different about doctors, dentists and vets?

By way of example, Chris recounts the story of an endodontist couple, who were starting a new practice in Australia after building one overseas. “We know their potential here so we could make an assessment based on that,” he recalls. “However, when they went for finance for a two- or three-thousand-dollar mattress, they were declined. The finance provider just didn’t understand their earnings and didn’t acknowledge their experience. It was a ridiculous situation, but one that many doctors, dentists and vets have encountered,” Chris says. “It comes from not seeing the client’s value and potential and just focusing on a set of financials.”

The accounts you need to consolidate your finances

Are you in a consolidation phase? Term deposits can effectively lock in competitive interest rates for a period that suits your situation and cash-flow requirements. It’s often wise to look for one that can be customised to your needs.

It’s also a good idea to have an element of flexibility in your savings accounts. This can help you allow for any fluctuations in cash flow. A transaction account with an optional overdraft facility or a 32-day term deposit are ideal for these situations. The former allows you to respond quickly if cash is needed, or to earn maximum interest on any savings that can be accessed after 32 days.

Seeking specialist help

Whatever your plans, whether they are buying new premises, upgrading equipment or growing your wealth, it’s smart to seek specialist financial help. “Choose a bank that knows and understands your business”, says Chris.

BOQ Specialist is an expert in assessing practices’ plans and approving finance, where others less knowledgeable may be reluctant to do so.

“It’s about investing in the client,” says Chris. “The financials might stack up but if you put a deal on paper, a lot of banks are not going to be able to approve that deal because they just don’t have the knowledge to understand that it makes financial sense.

“If we think a client has a solid business plan; they’ve done their research and we know that is has worked for previous clients, we have enough faith in the clients and their practice to say, ‘Yes, that’s something that they can achieve’.”

Looking for a dependable yield from your income or savings? Click on the link to learn about our fixed term deposits. Ready to take the next step? Contact us to find out how we can tailor a finance solution for you, or call us on 1300 131 141.

 

 

BOQ Specialist - a division of Bank of Queensland Limited ABN 32 009 656 740 AFSL and Australian credit licence no. 244616 (“BOQ Specialist”).

The information contained in this article (Information) is general in nature and has been provided in good faith, without taking into account your personal circumstances. While all reasonable care has been taken to ensure that the information is accurate and opinions fair and reasonable, no warranties in this regard are provided. We recommend that you obtain independent financial and tax advice before making any decisions.