New Ways to Finance Veterinary Clinic Construction

Clinics and Trends

Whether you’re building a new office or renovating an existing clinic, veterinary construction is a crucial part of every animal hospital’s life. Keeping up with new technology is essential to a successful practice and having the space necessary to accommodate a heavy client load guarantees comfort and safety. However, planning your new clinic construction can be a confusing process, especially if you plan to continue operating through the remodel. Below, we have a few tips to budget and finance your upcoming project.

 

Establish your budget before signing anything. Approach your lender with a comprehensive budget. This will both save time and curb potential overspending. Do what you can to get rough estimate for land purchase (if applicable) and anticipated construction costs. As a rule of thumb, add an additional 5%-10% to your total budget to account for contingency costs.

 

Develop your repayment plan before construction begins. Have a plan for how to absorb and/or recoup the costs of construction. Does your current profit margin allow you to absorb the cost of a loan? Will you need to raise your prices? Will the additional income generated by the construction allow you to pay back the loan faster?

 

Gather all necessary financial documents. Also, you should probably gather the unnecessary documents, too. Prepare to show your lender why construction is a worthy investment. Prepare and pitch a comprehensive business plan and include all information on projected income and expenses. Calculate the long-term financial impact of your remodeled or new facility. Lenders care about quantitative proof—show them the numbers.

 

Find the right loan and lender. Research available Small Business Administration (SBA) loans for veterinary practices. Each will offer different benefits. You should also find a lender who specializes in veterinary financing; this will allow you to select the right loan for your practice and carefully plan all financial details. These specialty lenders have a unique and comprehensive understanding of veterinary medicine and financing obstacles.

No Comments

Leave a Reply

Blog
Continuing Education Gains Momentum

Lifelong learning has been part of veterinary education for many years. The availability and form of continuing education has changed as the accumulation of knowledge increases in speed and requires an organized and efficient delivery to veterinarians and veterinary technicians.  In the 1950s and ‘60s, the American Veterinary Medical Assn. …

Clinics and Trends
How To Start A Pet Transport Company

Photo courtesy of Pet Inn Store These days more families than ever before have pets, and with world-wide travel also on the rise, it is only natural that there would be a rising need for pet transportation. It is easy to tell that if you are someone who both loves …

Clinics and Trends
Veterinary Careers Offer Great Opportunities

Did you know that there is high demand for vets in rural areas? If you’re looking for a career which offers plenty of opportunities to earn good money in and outside of cities, while also helping animals and giving pet owners greater peace of mind, you may want to consider …