Conventional and SBA Financing for Veterinary Services
The veterinary industry is expected to grow 4% annually between 2015 and 2021. Meanwhile, studies show that families are increasingly willing to pay more at the vet for their petsto stay healthy—to the tune of a $46 billion boost in vet expenditures by 2021. If you’re a veterinarian or a veterinary business owner, now could be an ideal time to make room for more clients, more staff and more technology at your practice.
Veterinary clinics have many options for growth; purchasing real estate, refinancing and purchasing the best equipment on the market are just a few common options. But with expansion comes a price tag that, in some cases, requires the help of a loan.
In order to secure the best loan for your veterinary business, you need to understand your options. To get you started in the process, our certified financial specialists have outlined key financing choices for veterinary businesses—including conventional and Small Business Administration (SBA) loans.
Why Consider Financing for Your Veterinary Services Business?
Whether you’re looking to purchase new facilities, buy updated veterinary technology or expand your current location, investments can come with a high starting price. Fronting the money to cover all of your expenses could take years of saving—during which time, valuable opportunities couldpass you by. Veterinary businesses looking to expand can do so with the help of a commercial loan that can be paid back over time as your business grows.
Are you ready to pursue financing for your next investment? Ask yourself the following questions:
- Has your business considered all options for growth? Why is financing best for your growth goals?
- Have you set up a budget for how funding will be used in the next year? Five years?
- How will your investment or purchase stimulate growth?
- Do you know certified commercial lenders who can help you through every step of the process to secure appropriate financing for your veterinary business? (If the answer is no, contact us today.)
Veterinary businesses have many financing options available, but not every loan is appropriate for your business’ needs and vision. Choose a certified lender who will find the best loan for long-term growth and increased profits. The best lender will work with your veterinary business to secure an ideal loan and loan terms for your goal in a timely manner.
Not all loans are created equal, so be sure to walk through every financing option with your financial advisor in order to make the best decision for your business, your profits and your future.
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Available Financing for Veterinary Services Businesses
Cornerstone Capital Lending offers a wide variety of financing options for veterinary services to ensure that you get the best funding for your investment. Each loan can be negotiated to fit your specific needs and vision.
Veterinary businesses of all sizes can find an appropriate loan that will help them at any stage of growth. Our certified financial advisors will discuss every option available based on your financial history and long-term goals.
Throughout this article, we’ll share more about the most common types of financing for veterinary services: SBA loans and conventional loans.
SBA 7(a) financing for veterinary services
In 2014, the Small Business Administration (SBA) approved more than $19 billion in SBA 7(a) loans for small businesses, making it the most popular loan in the SBA portfolio. Veterinary business owners can apply for an SBA 7(a) loan for up to $5 million to finance:
- Purchasing land and starting construction on a new facility
- Buying an existing veterinary business
- Expanding a current veterinary business
- Refinancing debt and/or repairing capital
- Buying the latest veterinary technology for surgical or general medical needs
Why Veterinary Businesses Choose the SBA 7(a) Loan
SBA 7(a) loans often offer a low down payment and competitive rates when compared with other types of financing for veterinarian services. The SBA 7(a) loan could help veterinary business owners preserve more capital and secure financing quickly.
SBA 504 financing for veterinary services
Veterinary businesses that would like to purchase real estate or equipment should also consider an SBA 504 loan, also known as a Certified Development Company (CDC) loan. SBA 504 loans are given to businesses looking to grow through by purchasing the following:
- Land or property
- Property renovations (i.e. a new parking lot or electrical work)
- Building renovations or modernizations
- Veterinary technology and equipment that will foster long-term growth
Unlike the SBA 7(a), the SBA 504 cannot be used for working capital or inventory, or to consolidate, repay or refinance debt.
Conventional loans for veterinary businesses
Veterinary businesses looking to purchase multi-use and special use property can also apply for an owner-occupied conventional loan . These loans can be used specifically for purchasing or refinancing commercial real estate to grow your business.
Conventional loans apply to multi-use owner-occupied property types including:
- Office properties: Professional, condominium, medical, dental and veterinarian services
- Industrial Properties: Heavy and light manufacturing, warehouse and R&D flex
- Retail Properties: General
- Special Use Properties: Assisted living facilities, adult care, day care facilities, funeral homes and select quick-service restaurants
SBA Financing for Veterinary Businesses
The United States Small Business Administration was formed in 1953 to help small businesses across the country grow through different types of financing. In the past few decades, millions of SBA loans have been granted to help small businesses purchase commercial real estate, refinance, buy equipment and otherwise invest in growing their company.
Why choose SBA financing for veterinary services? This loan program offers many benefits to qualifying business owners, including lower down payments and longer repayment terms than conventional bank loans. This makes the SBA loan a good option for veterinarian clinics looking to preserve capital as they grow.
The SBA guarantees part of the loan in case a business defaults. While traditional loans can charge high rates for guarantees, interest rates and fees of SBA loans are often less than or equal to those of unguaranteed loans.
In addition to SBA 7(a) and 504 loans, the SBA offers loans specifically for the following groups:
- Rural businesses (loans are provided by the United States Department of Agriculture to qualifying businesses)
How to Apply for Conventional and SBA Financing
Whether you want to explore SBA 7(a), 504 or other types of financing, contact one of the financial advisors at Cornerstone Capital Lending. We discuss all loan options with our clients to get them the most appropriate loan in a timely manner. Our experts put our clients’ needs first throughout every step of applying for SBA financing.
The experts at Cornerstone Capital Lending streamline the loan process to ensure that every client gets the loan they need in a timely manner. Once you have decided to pursue financing for your veterinary services business, we will walk you through the following process:
- Submit an online quote on our website. If you don’t have all the required information for this quote, you can reach out to our experts via this contact form.
- Discuss your financing requirements and options with our expert consultants.
- Let us know when you’re ready to complete a loan application. There’s no obligation to proceed with an application after your initial discussion with us.
- Complete your SBA loan or other loan application with the help of our consultants. We’ll explain your loan’s documentation requirements and help you understand any other fine details of your application.
- Receive your quote (in most cases, within 48 hours). All information you provide is kept strictly confidential and will only be used in the application process.
- Complete the Letter of Intent or Conditional Offer if you’re ready to move forward with your quote.
- If you’ve been successful thus far in the process, underwriting begins. Our team will support you by ensuring you know how to obtain all the documentation required by your application.
- Secure your loan, typically within 45 days of starting the process with our team.
- Our expert team begins the underwriting process, which is completed in-house. We will continue to help you obtain documentation until the loan is secured.
- Clients typically secure their loan within 45 days of contacting our team.
Each loan type requires specific documentation. For the SBA 7(a), for example, the applicant must submit a completed application, business debt schedule, personal financial statements and other documents on this SBA 7(a) submissions checklist. Choose a certified commercial financing expert who will walk you through this process, as submitting the correct paperwork helps ensure your loan application is completed in a timely manner.
Choosing the Right Certified SBA Lender
SBA loans can be obtained through a bank or a lender. In order to choose a lender that will find the best option for your veterinary business, you should look for an experienced business that is SBA certified. Choose a lender that has a high-quality track record, years of experience working with veterinary clients and a wide variety of loan programs.
Before you choose a lender, ask yourself the following questions:
- Will this lender help me secure the right loan, in a timely manner?
- Will the lender be able to negotiate down payments and payment terms to fit my needs and goals?
- What type of SBA loans does the lender offer my business? Are they certified to administer these SBA loans?
- Has the SBA lender worked with veterinary clients in the past? How was the experience for their clients?
When you choose Cornerstone Capital Lending, you’ll be able to answer those questions confidently with a “yes.” Our SBA certified team has more than 40 years of experience finding the best loans for small business owners, including veterinary clients. We know what veterinary businesses need to grow and can find the best loan to meet your long-term goals.
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