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Specialist practice finance for professionals & practice owners

Case Studies

Tax Funding

  • A large six surgery practice contacted us for a funding requirement of £120,000, which they wanted over a short term. As well as having to pay their corporation tax liability, the surgery needed refurbishment and wanted to reserve funds for working capital and marketing. Based on our extensive experience we knew that the latter would be difficult to fund and therefore recommended financing their corporation tax liability over a 12 month term. The client was however hesitant in financing their tax liability as a matter of principal. We informed the clients and their accountants that the tax funding facility was still an unsecured, unspecified business loan, which they could utilise for anything they wanted. They would also be able to offset the interest costs against future profits and gain tax relief. The clients were happy to proceed on this basis and we managed to place £120,000 with a finance provider over a 12 month term. Because they were a limited company, and the directors took most of the profits in the form of dividends, the funder only required director’s guarantees. The clients paid their tax liability, and used the funds for refurbishment and marketing. The result was a modern looking practice, which adhered to CQC requirements and HTMO1-05, and a dramatic increase in new patients thanks to their new website and internet marketing. The increase in business covered the costs of the facility.

  • To take advantage of tax benefits, a dental practice incorporated, but unfortunately miscalculated the tax payable on Goodwill. This left the practice with a tax liability of £80,000 and no money to pay it. The practice contacted Shire Professional Funding to assist with a loan facility. We advised the client to split the requirements between several funders and contacted our specialist lenders to consider the request. We managed to get the funds accepted between three finance companies. Two funders gave £30,000 and a third provided £20,000 over 12 months unsecured. The deal was completed within two weeks of first contacting us, which in the current market is a very quick turn around.

Practice Refurbishment

  • A client contacted us to finance a Cerec machine for £75,000. He had received a finance lease quote from his local bank, had his deposit available to be placed, but wanted to see what we could offer. The financial information provided showed a practice that was trading well, although turnover had stagnated in the last 18 months, showing the same turnover as the previous year and profit margins slightly down. The client’s bank statements showed that he used some of his overdraft, but was still well within his overdraft limit. We approached our lender with the requirement to fund the Cerec machine and provided relevant proof of what benefits the machine had to the client and that the client could afford to cover the costs of the finance. The funder accepted the deal over a 5 year term with no deposit. This resulted in the client receiving the machine he wanted, when he wanted and allowed him to use his deposit money to pay towards marketing material to advertise the new machine and the benefits to his patients, which in turn increased his income.
     
  • One of our clients needed to install a decontamination room to adhere to HTM01-05 and the requirements stipulated by the Care Quality Commission. The client did not have the space required for this room, but had received planning permission for a small extension to the property. Shire Professional Funding set up a loan facility which was paid straight into the practice account to ensure the client could pay all the relevant parties for building and decorating costs, as and when required. We also funded the necessary new equipment on a Hire Purchase facility. To simplify the process, we, as lender, were invoiced directly by the equipment supplier, so the client did not need to worry about this, and all parties were paid on time.

Contact

Contact

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1 Calico Business Park
Sandy Way
Amington
Tamworth
Staffordshire
B77 4BF

T:01827 300 095
E:info@shirepf.co.uk

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