Well, you can’t simply take money out of your existing practice to buy another one. This would more than likely reduce your working capital and possibly cause problems with your cash flow and put your existing practice or surgery into financial trouble. However, if you have an amount of ‘wealth’, or goodwill, built up in your current
practice, you could use this without touching the funds in your business’s bank account. Known as a Goodwill Loan, or a Capital Withdrawal Loan or Cash Out, this lets you gain access to the value of your business’s wealth without withdrawing the funds.
The goodwill that you have built up over time in your practice will act as the security to the lender for the loan and it can bring you a sum that is approximate to your annual turnover, with repayment terms usually up to around 15 years. As with any mortgage application, the lender will have to look at your current accounts before making a decision, and interest rates will be decided upon when the loan is taken out.
Another option you can consider is to take out a secured business loan, which are loans that are supported by securities like your home or any other business properties or assets that you may own. This will reduce the risk to the lender and reduce the cost of the loan to you as a result.