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Updated: March 27th, 2020
If you’ve recently graduated from veterinary school, you have a lot of options when it comes to how you can launch your career. Many veterinarians choose to work for a more established practice for several years.
Working in and around an existing practice can be an excellent way to create a reliable source of income while you make a name for yourself. But, some veterinarians choose to take a chance on themselves and open their own veterinary clinic.
Opening your practice is incredibly exciting, but it does come with a lot of work and necessary expenses. If you find yourself in this situation, veterinary practice financing can help.
If you’re planning to open a practice, there are a lot of expenses you’ll need to be prepared to face.
The biggest thing you’ll need to keep in mind is the location. At the very least, you’ll want to make sure there is a waiting area and several examination rooms.
You also need to consider what type of veterinary equipment you’ll need, like medical equipment and veterinary surgical instruments. And you’ll likely need kennels when you have to keep pets overnight.
It is also very important not to neglect the administrative setup for your practice. How will guests check-in, and where will you set up your offices? It would be best if you also thought about how many employees you’ll need to hire and how much you’ll need to spend on marketing.
All of these expenses can add up, which is where veterinary practice loans can come in handy. Opening a new business can be a risky venture, and securing financing can help bring stability and steady cash flow to your practice.
If you’re looking for ways to finance your new practice, you’re in luck! You have many options to mull over. Here are the three best veterinary practice financing options:
If you’re looking for an easy way to get started, you can submit a veterinary loan application through a local bank. Banks tend to offer lower interest rates and more flexible repayment terms. You may even find a bank offering loans that specifically cater to veterinarians opening new practices.
However, qualifying for a bank loan can be tough. You will need to have a strong credit history to qualify, and you may be required to put down collateral.
If you already have an existing relationship with a local bank, then it may be a good idea to start there. The bank may look more favorably upon your situation and veterinary loan application if you have a good banking history with them.
You’ll apply for an SBA loan through a bank, but the Small Business Administration backs the loans. Since a federal agency guarantees the loan, banks are usually more willing to take a chance on borrowers they wouldn’t normally consider.
However, SBA loans are highly in-demand, and the application process is lengthy. You’ll need to provide detailed documentation about what you intend to do with the funds. So if you need to receive the money right away, an SBA loan is not going to be the right choice for you.
If applying for a bank loan isn’t an option, you might look into online lenders for veterinary practice financing.
The application process is fast and straightforward, and you can receive the money within a few days. In comparison, it could take weeks or even months to receive the funds you need from a bank or SBA loan.
Online lenders do tend to charge higher rates than what you would receive with a bank or SBA loan. But, the rates and terms will largely rely on your credit history, business model, and your intended use of proceeds.
There is a lot to contemplate when you’re opening your own veterinary clinic. Veterinary practice loans aren’t easy to apply for, but it’s entirely possible to find the financing you need.
You’ll increase your odds of approval if you go into the veterinary loan application process prepared. Clean up your credit history and come up with a detailed business plan. Proactive preparation will ensure that you can show why you’re the right candidate for a loan.
Paige Smith is a Content Marketing Writer and Senior Contributing Writer at Funding Circle. She has a bachelor's degree in English Literature from Cal Poly San Luis Obispo, and specializes in writing about the intersection of business, finance, and tech. Paige has written for a number of B2B industry leaders, including fintech companies, small business lenders, and business credit resource sites.