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W W W. M A I N E B I Z . B I Z 25 A P R I L 4 , 2 0 2 2 F O C U S B A N K I N G / F I N A N C E / I N S U R A N C E W hether you are acquiring a new medical, dental or specialty health care practice and are evaluating commercial financing options or are growing a practice by acquiring a new location or investing in new equipment, financing a general or specialty practice is a big step for any owner. As you enter this stage of growth, there are several best practices to follow for medical offices undertaking the pro- cess of finding and working with a busi- ness banking partner to provide funding. Establish a support team early e financing process will inevitably go more smoothly if you're well prepared. It's good to have a solid advisory team to support you throughout the lending process. e team should include: An accountant to provide advice on tax implications of new legal structures, prepare corporate returns, provide thorough financial records, and ensure finances are in order. A financial advisor to provide strat- egies on benefits to personal finances, subsequent large purchases, and how best to optimize resulting income. A trusted real estate agent who understands the specific needs of your health care practice to poten- tially handle lease negotiations, provide listings options for your new space, and handle negotiations on purchase or sale of real estate. An insurance agent to ensure appro- priate life, malpractice, liability, and property insurance to have the proper safeguards in place. Select a qualified lender When it's time to consider options for expansion, it's wise to start by reaching out to lenders with whom you have an existing depository account or business banking relationship. If you already have a strong relationship with your existing bank, you'll be off to a good start work- ing with a team that is familiar with your financial history. If you are looking for a financing partner, you might consider: What options are available with local lenders? A local provider understands the regional market and will be accessible in person to navigate any potential issues that may arise and can provide the high level of customer service needed to process and close a loan transaction smoothly and quickly. Does the lender have a demon- strated history of lending in this space? Choose a lender that under- stands how the medical industry operates compared to other indus- tries and will be able to offer guid- ance based on this expertise. Does the lender offer additional services that can benefit your business? Some banks offer a full suite of business management tools including merchant services, payroll and cash management. Prepare for the process Depending on your circumstances, your lender will need numerous historical and current financial details throughout the lending process. You should be prepared to provide the following: ree years of historical financials and year-to-date financials. Specifics on your personal back- ground including education history, personal financial strength, and three years of personal tax returns. Proof of life insurance and malprac- tice insurance policies. In the case of an acquisition, the practice's primary employees and whether they will stay on. In addition to financial information, a new healthcare practice might require a solid business plan, while construc- tion of a new facility has its own needs including budgets, plans and specs to support your financing request. e best way to be prepared for your individual situation is to build your sup- port system early on so that any requisite documentation already exists and is eas- ily accessible when it's time to provide it. With a solid team in place, you will be well prepared to grow your practice. N i c k D i M a t t e o i s a v i c e p r e s i d e n t a n d b u s i n e s s relationship banker at Machias S a v i n g s B a n k . H e c a n b e r e a c h e d a t N D i M at t e o @ m a c h i a s s a v i n g s . c o m Select the right financial partner for a medical practice B Y N I C K D I M A T T E O B Y N I C K D I M A T T E O H OW TO Help Maine entrepreneurs become successful along their startup journey. DEADLINE MAY 12 Mainebiz will produce a special magazine to examine the startup infrastructure in Maine and the resources available to help entrepreneurs at the various stages of their startup journey. SP ONSORED BY N O T F I N A L C OV E R June 27, 2022 VO L . X X V I I I N O. V I www.mainebiz.biz Startup Hub Be a resource and a guide to our Maine entrepreneurs and business leaders today. Learn more by emailing advertising@mainebiz.biz MAINE HEART WALK Sunday, May 15th at 9 AM IN PERSON! AAA Parking Lot, 68 Marginal Way, Portland, followed by a walk around Back Cove MaineHeartWalk.org Steve deCastro Heart Walk Chair President and CEO of Gorham Savings Bank Locally sponsored by

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