The lender has one genuine concern – are they likely to receive money straight right back? And how do they decide that?
I’ve asked a dozen bankers that are different particularly their underwriting groups consider on dental financing discounts, as well as all solution with comparable figures: 60% of this choice to offer that loan is due to the training, and 40% of this choice is because of you actually once the debtor.
60% for the choice – the training figures
The bank will look at the numbers below and feed them into the cash flow model on the practice side of the deal. They’ll utilize this model to project exactly just just how money that is much make being an owner regarding the training you’re considering, and in case you really can afford to help make the necessary loan re re payments.
- Collections – the length of the training? Are collections shrinking or growing?
- Profitability – just how much of every dollar of collections does the medical practitioner keep right after paying all the costs for the company?
- Hygiene Production – What portion of total manufacturing originates from hygiene? Exactly just exactly What portion originates from new clients? Going back clients?
- Procedure Mix – Can the doctor that is purchasing the exact same procedures that the selling physician executes? Just how much has been introduced down?