Knowledge Hub: cost data
How much does it cost to buy a professional practice? UK finance costs 2026
Loans to buy a practice or buy into a partnership are published at 10.25% to 25% a year by the professions lenders on our panel, and at 10.25% to 16.53% over five years. Below: rates by finance type and by profession, a worked example, the fees to watch and how the figures were found.
- Confidential, no-obligation discussion
- Access to 300+ lenders
- We are a broker, not a lender
“If you’ve struggled to get help elsewhere, I would absolutely recommend giving them a call.”
- Lender panel300+ lendersWhole-of-market search
- Instant QuotesNo credit searchSee indicative quotes first
- Who we helpProfessional practicesSole traders, partnerships, LLPs and companies
- Our roleSpecialist brokerWe approach suitable lenders for you
Quick answer
What does practice purchase finance cost in 2026?
Professions term loans, which fund practice purchases, goodwill and partner buy-ins, are published at 10.25% to 25% a year across 6 professions lenders on our panel, on terms of 3 months to 5 years and loan sizes of £5k to £2m. Over five years the range is 10.25% to 16.53%.
The rest of a purchase is usually funded differently: equipment through asset finance at 8% to 16% over three years, premises through long-term secured lending at 8.99% to 19.08%, and tax or PII bills through short-term funding at 8.9% to 22%.
These are the lowest and highest rates lenders publish, based on 13 lenders on our panel, October 2026. They are not quotes. Final terms depend on the lender and on your practice.
At a glance
- Purchase and buy-in loans: 10.25% to 25% a year
- Over 5 years: 10.25% to 16.53% a year
- Equipment over 3 years: 8% to 16% a year
- Premises, secured: 8.99% to 19.08% a year, up to 75% loan to value
- Tax, VAT and PII funding: 8.9% to 22% a year
Published rates from lenders on our panel, October 2026. Indicative only.
Summary table
Practice finance rates by type, October 2026.
| Finance type | Rate a year | Terms | Loan sizes | Based on |
|---|---|---|---|---|
| Practice purchase, goodwill and partner buy-in loans | 10.25% to 25% | 3 months to 5 years | £5k to £2m | 6 professions lenders, 33 published rates |
| The same loans over 5 years | 10.25% to 16.53% | 5 years | £5k to £2m | 5 professions lenders, 8 published rates |
| Equipment and asset finance | 8% to 19.35% | 1 month to 7 years | £1k to £500k | 3 professions lenders, 26 published rates |
| Equipment and asset finance over 3 years | 8% to 16% | 3 years | £1k to £500k | 3 professions lenders, 14 published rates |
| Premises: long-term loans secured on property | 8.99% to 19.08% | 12 months to 30 years | £10k to £10m | 5 lenders, 13 published rates; maximum loan to value 65% to 75% |
| Tax, VAT and PII funding | 8.9% to 22% | 3 months to 2 years | £5k to £2m | 4 professions lenders, 18 published rates |
| PII premium funding, flat charge | 3.15% to 11.73% flat | 3 months to 18 months | Set by the premium | A flat charge for the whole term, not a yearly rate |
Professions term loans are the main way a goodwill-heavy purchase or a partner buy-in is funded on our panel. Shorter terms carry higher yearly rates in the published data, which is why the five-year range sits towards the bottom of the full range. A further 9 professions products are priced on application and are not in these ranges.
Commercial mortgages for buying practice premises are priced case by case and are not in our published panel data, so the premises row shows long-term secured business loans with property as security, the nearest published pricing. See practice premises finance.
What drives the cost
What drives the cost, by profession.
Not every lender funds every profession. The ranges below count only the professions lenders on our panel whose own criteria name that profession, so they differ a little from one profession to the next. Inside each range, the price you are offered is driven by the practice’s accounts and profit, how much of the price is goodwill, your experience and contribution, the term, and what security is available.
| Profession | Purchase and buy-in loans | Equipment and asset finance | What lenders focus on |
|---|---|---|---|
| Dental practices | 10.25% to 25%6 lenders | 8% to 19.35%3 lenders | Lenders look at the mix of NHS and private income, the surgeries and equipment, and the goodwill in the price. |
| Veterinary practices | 11.17% to 25%5 lenders | 8% to 19.35%3 lenders | Diagnostic equipment and premises often sit alongside goodwill, so asset finance and secured lending can carry part of the cost. |
| GP and medical practices | 10.25% to 19.5%5 lenders | 8% to 19.35%3 lenders | Partner capital and a share of the premises are the usual costs, and practice income comes largely from NHS contracts. |
| Pharmacies | 11.17% to 19.5%3 lenders | 8.35% to 19.35%2 lenders | Goodwill and dispensing income drive the price, stock has to be funded on completion, and the NHS change of ownership runs alongside. |
| Opticians | 11.17% to 25%4 lenders | 8% to 19.35%3 lenders | Stock, testing equipment and goodwill are funded together, so the split between a term loan and asset finance matters. |
| Accountancy practices | 10.25% to 25%6 lenders | 8.35% to 19.35%2 lenders | Whole practices and fee blocks are priced on recurring fees, and deferred consideration often reduces what is needed on day one. |
| Law firms | 10.25% to 25%6 lenders | 8.35% to 19.35%2 lenders | Work in progress, run-off cover and the SRA approval of new managers or owners all affect the funding and the timetable. |
Worked example
£100,000 over five years, at both ends of the range.
This is arithmetic on the published rates, not a quote or a typical deal. It takes £100,000 borrowed over 60 months on a professions term loan, priced at the lowest and highest published five-year rates for loans of that size (10.5% to 16.53% a year, 5 lenders). Arrangement fees are left out.
Monthly repayment = L × r ÷ (1 − (1 + r)−n)
L = amount borrowed, r = yearly rate ÷ 12, n = number of months
| At 10.5% | At 16.53% | |
|---|---|---|
| Monthly repayment | £2,149 | £2,460 |
| Total repaid | £128,963 | £147,603 |
| Total interest | £28,963 | £47,603 |
The gap between the two ends is £18,640 of interest over five years on the same amount, which is why presenting the case well and comparing lenders matters. Try your own figures in the practice finance calculators.
Fees to watch
The costs on top of the rate.
Arrangement fees
3 of the 6 professions lenders behind the purchase and buy-in range publish no arrangement fee on those loans. Long-term secured loans publish arrangement fees of 1% to 3% of the loan.
Early repayment charges
5 of the 6 professions lenders publish no early repayment charge on those loans. If you may repay early, after a sale or a refinance, ask before you sign.
Personal guarantees
All 6 professions lenders behind that range publish that a director’s personal guarantee is required when the borrower is a company. A guarantee is not a fee, but it is part of what the borrowing costs you.
Valuation and legal fees
Secured lending needs a property valuation and the lender’s legal work, usually paid by the borrower. Goodwill valuations and your own solicitor and accountant add to the cost of the purchase.
Run-off and regulatory costs
Run-off cover, regulatory approvals and a new PII policy can fall due around completion. See every cost of buying a practice.
Broker fees
Where a client or broker fee applies, it is disclosed to you separately before you proceed, and lenders may pay us a commission. Ask us about both at the start.
Flat-rate pricing
Some short-term funding is priced as a flat charge for the term rather than a yearly rate. Compare it on the yearly rate it works out at, as Instant Quotes does.
Keeping costs down
How to keep the cost down.
- Match each cost to the right finance. Goodwill on a term loan, equipment on asset finance, premises on secured lending: the published rates differ by type, and one loan carrying everything is rarely the cheapest structure.
- Think about the term. Longer terms carry lower yearly rates in the published data, but more months of interest. Run both in the calculators.
- Use deferred consideration where it fits. Paying part of the price later can reduce what you borrow on day one. How deferred terms work.
- Present a complete case. Three years of accounts, a forecast and a clear explanation of the price help a lender price you towards the lower end. What lenders look for.
- Compare professions specialists and banks. Their criteria and pricing differ by profession, as the table above shows. Searching the market is what we do.
- Plan tax and PII bills alongside the purchase. They often fall due around completion. Funding them with products made for them keeps them off the purchase loan. Tax and VAT funding.
Questions
Common questions.
What interest rate will I pay to buy a professional practice?
Professions term loans used for practice purchases, goodwill and partner buy-ins are published at 10.25% to 25% a year by the 6 professions lenders on our panel with a published rate (October 2026). Over 5 years the published range is 10.25% to 16.53%. The rate you are offered depends on the lender, the practice’s accounts, your experience and contribution, the amount and the term. Rates are indicative and final terms are set by the lender.
Is a partner buy-in loan cheaper than a loan to buy a whole practice?
In the published panel data the same professions term loans cover both, so the rate ranges are the same. What changes the price is the case: a buy-in is judged on the incoming partner’s share of profit and the partnership agreement, a whole purchase on the practice’s accounts and the buyer’s contribution. Borrowing by an individual partner can be regulated consumer credit, and we will tell you at the outset if that applies.
How much deposit do I need to buy a practice?
There is no single figure. Most lenders expect some contribution from the buyer, and deferred consideration from the seller can reduce what is needed on completion. For premises, long-term secured loans on our panel publish maximum loan to value figures of 65% to 75%, so the rest of the property price comes from your own funds or other borrowing.
Do you publish goodwill multiples or average deal sizes?
No. Goodwill is valued case by case, usually by reference to sustainable profit, and the method varies between professions. We do not publish multiples, average loan sizes or approval rates, because our data does not support a fair figure. This page only reports the rates, terms and loan sizes lenders publish.
Can I see what lenders would offer for my own practice?
Yes. Instant Quotes shows indicative quotes from lenders on our panel for your profession and what the money is for, with no credit search. We are a broker, not a lender: we search the market for you and final terms always depend on the lender.
How often is this page updated?
The figures are worked out from our panel data each time the site is built, and the method note says when the data was last read (19 October 2026). Lenders change their rates, so check the date before you quote a figure.
Method and sources
How these figures were found.
Based on published rates from 13 lenders on our panel, October 2026. The data is the lender panel behind our Instant Quotes: each lender’s published rate range, terms, loan sizes and fees for each product. Each range runs from the lowest published rate to the highest for that finance type. Nothing is averaged, and we do not show which lender publishes which rate.
- Purchase, goodwill and partner buy-in loans: unsecured term loans from lenders that specialise in professions, excluding their tax and PII products. The five-year row counts only products offering a 60-month term.
- Equipment and asset finance: hire purchase, leasing and asset loans from professions specialists. The three-year row counts only products offering a 36-month term.
- Premises: secured business loans with terms of ten years or more, from any lender on the panel. Maximum loan to value is the highest each product publishes against property.
- Tax, VAT and PII funding: professions products for VAT, corporation tax, self assessment and PII premiums, priced as a yearly rate. Flat-rate PII funding is shown on its own row.
- By profession: only lenders whose own criteria name that profession, as Instant Quotes applies them.
Products priced only on application are left out of the ranges. Rates are indicative and change; the rate a lender offers depends on its own assessment, and final terms are set by the lender. Professional Practice Loans is a broker, not a lender: we search the market and arrange finance, we do not lend.
Last updated: 19 October 2026.
Cite this page
You are welcome to quote these figures with a link to this page. Please cite it as:
Professional Practice Loans, “How much does it cost to buy a professional practice? UK finance costs 2026”, updated 19 October 2026, https://www.professionalpracticeloans.co.uk/knowledge-hub/practice-purchase-finance-costs/
This guide is for general information only and should not be treated as legal, tax, accounting or financial advice. Funding availability and lender requirements depend on individual circumstances. Finance of £25,000 or less for sole traders and small partnerships can be regulated consumer credit. We'll tell you at the outset if that applies to your firm.
Put it into practice
Related funding and guides.
Let's talk
See your own
indicative quotes.
Instant Quotes shows indicative rates from lenders on our panel for your profession and what the money is for, with no credit search.
