5 ways to boost your chances for a veterinary practice loan
Who will finance your practice purchase? The seller may finance part or all of the purchase, but usually you’ll need to borrow from outside lending institutions. Here’s what some top lenders in the veterinary industry say you can do to convince them to approve your loan.
1 Develop personal cash reserves. Do you have cash available for a down payment when you’re ready to buy a practice? Save, save, save. In today’s banking and lending environment, liquidity is king.
2 Maintain a squeaky-clean credit history. As a rule of thumb, credit scores above 675 are necessary to be approved for a loan. In fact, poor personal credit is the one thing that can stop ownership ambitions cold. Visit http://annualcreditreport.com/ to receive your free annual credit report.
3 Pursue a conservative lifestyle. This means refusing to accrue lots of consumer debt. But don’t despair about your student loan: Lenders understand this type of debt and it’s not always a huge factor in their decision. Also, mortgages that can be supported by sufficient cash flow and are reasonable when compared to income would not negatively impact your loan application. In some cases they can ….