By growing, investing in, and managing your practice, you’re inherently building goodwill, but what is goodwill and what else could you be doing to increase the value of your practice?Learn More
Do you dream of owning your own private practice? Or a share of an existing practice? Our extensive experience in lending to doctors, dentists and vets means that we understand the value of your profession and are able to lend against the practice’s goodwill and equipment, rather than your home.*
At BOQ Specialist, we recognise the time it takes to build goodwill. That’s why, we take into account the sustainability of the practice and the value of intangible assets such as people, patients and intellectual property. We can lend up to 100% of the purchase price of an existing practice, using goodwill and equipment as security rather than your home or other property . We can also lend up to 100% of the amount you need to buy into an existing partnership, or to increase your share in a practice. We back you and your business, giving you flexibility and support over the long term.
If you are an aspiring or existing practice owner wanting to know how you can leverage the goodwill of a practice to make your next career move, take a look below at some our most frequently asked questions regarding goodwill and practice purchase loans.
Goodwill is the intrinsic value of a practice - that is the value of a practice, excluding its property, equipment and other physical assets. Goodwill includes the value in the patient base, reputation of the practice, consistent good service and range of services, and more specifically, the future cashflow that should be achievable if the transition of the goodwill is managed well. It also includes all those non-physical assets that belong to a practice such as the practice's name/brand, IP information, phone numbers, websites, and so on.
At BOQ Specialist, we consider a combination of EBITDA, which is earnings before interest, taxes, depreciation, and amortization, as well as practice gross revenue to measure the value of a practice.
It is really important for anybody wanting to buy into a practice to get an experienced accountant to help them assess the value of the business. This will help ensure you are not over paying. Conversely, if the practice is selling too cheaply you may also need to understand why. It's important to make sure that you use an accountant that understands how medical, dental and veterinary practices work.
For a goodwill loan, the goodwill and equipment of the practice is used as security. If you’re buying into a practice partnership, existing partners can remain unaffected as we only take a security interest over your share of the partnership.
If you’re buying into a practice partnership, existing partners can remain unaffected as we only take a security interest over your share of the partnership.
No – you do not have to borrow against your home or other personal property with a goodwill loan. At BOQ Specialist, we understand the value of your profession and recognise the time it takes for a practice to build goodwill. Our extensive experience in lending to doctors, dentists and vets means we we’re able to use the goodwill and equipment of the existing practice as security, rather than your home or other personal property.
Given the intangible nature of goodwill and strong reliance on the practitioner/s to maintain and build goodwill within the practice, we require the borrower or primary practitioner/s to obtain or provide evidence of life and income protection cover sufficient to cover any loan balances secured by goodwill.
Pending credit approval, we can lend up to 100% of the purchase price of an existing practice, or share in a partnership.
Depending on your unique lending scenario, we may rely on a combination of both the income from the practice being acquired and current personal billings (if contractor or employee) to determine serviceability and income capability as an owner/manager practitioner when assessing a goodwill loan.
Practice purchase contracts will generally include a goodwill and equipment component. We tend to fund the goodwill component via a goodwill loan facility and the equipment component via an asset finance product (such as lease or chattel mortgage).
Yes, we can lend against the goodwill you have acquired in your practice to assist with growing or expanding your practice further.
Your local finance specialist will be able to provide you with a list of the information required to apply for a goodwill loan. This will include:
No. At BOQ Specialist, we do not require a valuation of the goodwill of a practice. However, clients may elect to obtain independent valuations to help guide them as to a fair purchase price.
Our goodwill loans offer competitive fixed and variable rate options. You can choose a flexible loan structure and repayment terms to suit your cashflow needs.
Our goodwill loans can be amortised over 13 years* and can be structured as either variable or fixed (up to five years). All repayments are scheduled on a monthly basis on a date that suits your cashflow needs.
*Subject to credit approval
Any information is of a general nature only. We have not taken into account your objectives, financial situation, or needs when preparing it. Before acting on this information you should consider if it is appropriate for your situation. BOQ Specialist is not offering financial, tax or legal advice. You should obtain independent financial, tax and legal advice as appropriate.
The issuer and credit provider of these products and services is BOQ Specialist. Terms and conditions, fees and charges and lending and eligibility criteria apply. You should obtain and consider the product terms and conditions before making any decision about whether to acquire the products. We reserve the right to cease offering these products at any time without notice.
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*Subject to credit approval