Refinancing a Professional Practice
Restructure
what you already owe.
Borrowing built up over acquisitions and growth can stop fitting the practice. A review can show whether a different structure would suit it better. Refinancing isn’t automatically cheaper, and we’ll set out the trade-offs.
- Confidential, no-obligation discussion
- Whole of market access
- We are a broker, not a lender
“I will recommend them to other business owners in my network looking for funding in future.”
- Lender searchWhole of marketNot tied to any one lender
- Instant QuotesNo credit searchSee indicative quotes first
- Who we helpProfessional practicesSole traders, partnerships, LLPs and companies
- Our roleSpecialist brokerWe approach suitable lenders for you
The picture
Debt that made sense then may not fit now.
Practices accumulate borrowing over time: an acquisition loan, asset finance on equipment, a commercial mortgage, premium finance, a tax loan, an overdraft that has become permanent. Each was sensible when it was taken out. Together they can mean several repayment dates, several lenders with competing security, and monthly commitments that no longer match how the practice earns.
Refinancing is about fit rather than simply price. It can consolidate facilities into a simpler structure, extend a repayment profile to ease cash flow, release equity from premises, make room for the next acquisition, or replace a lender whose appetite has changed. It can also cost money, through early repayment charges, arrangement fees and valuation costs, so the benefit has to outweigh the cost.
A good refinance starts with a complete picture of what the practice owes, on what terms and to whom. From there it is possible to see which facilities are worth restructuring and which are best left alone.
The journey, step by step
- 1
Review what you have
Every facility, its terms, security, repayment profile and any early repayment charges. This is the foundation of any refinancing decision.
- 2
Acquisition debt
Often refinanced to make room for the next acquisition, or to consolidate several earlier deals into one facility.
- 3
Premises
An existing commercial mortgage coming to the end of its term, or equity in the freehold that could support the practice.
- 4
Equipment
Equipment you own outright can sometimes be refinanced to release cash back into the practice.
- 5
Short-term pressure
Recurring tax and renewal borrowing, or an overdraft that never clears, can point to a working capital facility that fits the practice better.
Things to consider
Before you refinance.
Count the exit costs
Early repayment charges, arrangement fees, legal and valuation costs all come off the benefit. Compare the total cost, not just the monthly payment.
Longer is not always better
Extending a term reduces monthly payments but can increase the total paid. It should match how long the practice will benefit.
Security and guarantees
A new lender may take different security or ask for new guarantees. Understand what changes before you sign.
Timing
Refinancing works best from a position of strength, with up-to-date accounts, rather than under pressure from a lender.
Preparing the case
What lenders will ask for.
- A schedule of all existing borrowing, with statements and terms
- Recent accounts and management figures
- The purpose of the refinance and what it is expected to achieve
- For property, the title, lease details and a valuation
- The practice’s plans for the next few years
We are a broker, not a lender. We help you prepare this, search the market for lenders whose criteria fit, and manage the process through to completion. How it works →
- Whole of market accessHigh street banks, specialist and private lenders.
- Specialist understandingLenders who understand how practices earn and grow.
- Your case, properly presentedStructured and put to lenders suited to it.
- With you to completionFrom the first conversation to funds arriving.
In our clients’ words
“We had already approached other finance companies who weren’t able to help. From our first conversation to everything being completed took around 7 days, and they kept us informed throughout. If you’ve struggled to get help elsewhere, I would absolutely recommend giving them a call.”
Questions
What owners usually ask.
Will refinancing reduce what we pay?
Not necessarily. It can reduce monthly payments, simplify borrowing or create capacity, but total cost depends on the rate, term and fees. We set out the trade-offs before you decide.
Can we consolidate asset finance, loans and tax funding into one?
Sometimes, depending on the lenders and the security involved. Asset finance is often best left in place, while unsecured and short-term debt may be consolidated.
Can we release equity from our practice premises?
Often, yes, through a commercial mortgage or remortgage. See premises finance.
Our bank has changed its appetite. What are our options?
The wider market includes challenger banks, specialist professions lenders and alternative funders. We can review who is most likely to support the practice as it is today.
Knowledge Hub
Read the guides.
What Lenders Look For in a Practice Finance Application, and How to Prepare
A practical guide to the documents, numbers and narrative lenders expect from professional practices, the common reasons applications stall, and how a broker presents the case.
Read the guide →Hire Purchase, Leasing or a Loan: Financing Practice Equipment and Technology
How hire purchase, finance leases, operating leases, contract hire and loans compare for dental chairs, imaging, OCT, dispensing robots, case management systems and vehicles.
Read the guide →Fee Block Finance: How Accountancy and Advisory Practices Fund Buying a Client Book
A practical guide to financing a fee block purchase: how deals are priced and structured, what lenders look at, and how to protect cash flow while the clients bed in.
Read the guide →Let's talk
Finance for
what's next.
Before you approach a lender, speak to someone who understands the transaction. Confidential, no-obligation initial discussion.
