Struggling with the burden of high-interest loans in today's volatile economic climate? This episode promises to arm you with strategies to manage those financial pressures, especially if you're part of the dental industry. We'll dissect the recent surge in interest rates and what it means for your monthly payments and cash flow. Learn how to navigate this shift from a seller’s to a buyer’s market, ensuring your practice is presented in the best possible light for potential buyers.
Do you know how refinancing could transform your business's financial health? We shed light on the strategic advantages of refinancing business loans, from lowering monthly repayments to consolidating short-term, high-interest loans into a single manageable one. Discover how you can free up capital for investment or savings and even remove extra security like a second charge on your property, simplifying your financial management. Our real-world examples will illustrate how even small interest rate reductions can lead to substantial savings over time.
Maximize your practice's financial deals by comparing offers from multiple banks, and learn the benefits of joining a buying group to slash costs on essentials like consumables and utilities. We'll also explore how these cost controls can impact your practice's valuation if a sale is on the horizon. Plus, we address a listener's query about securing finance for a startup, stressing the importance of refinancing options and leveraging resources for stability. Don’t miss our wrap-up where we address your final questions and provide further guidance. Tune in for comprehensive insights and actionable advice to navigate the current financial landscape.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:06):
Okay, good evening, good evening.
Right Before I kick off, I wantto make sure everything's
working technology-wise.
I think it is.
Yes, I think it's working,which is a good sign.
So, right, good eveningeveryone.
Welcome to this webinar.
As we've nicely put on thiswebinar at the bottom, my name's
(00:28):
Aaron and I've got Dan here.
Hey, dan, how are you doing?
Very good, how's everyone?
Hopefully good, hopefully good.
Now, what we are going to betalking about this evening,
we'll keep it relatively briefand short, but hopefully to the
point.
Um is refinancing um anyexisting loans.
Now, without further ado.
(00:49):
Do you want to just do a?
Give a summary down what'shappened in the last few years
in terms of interest rates?
Speaker 2 (00:55):
so pick for people to just to give a recap where's it
going, maybe hopefully yeah, so, yeah, so over the last couple
of years there's been a steadyrise in terms of interest rates,
going up, unfortunately, forfor everyone you know, not just
businesses, but you knowhomeowners as well.
Um, obviously there's beenanother factors in including
(01:15):
that include, like you know,inflation, etc.
Um, yeah, that has put apressure in terms of what people
have been paying, because wehave been used to a lower
interest rate, or Bank ofEngland interest rate being at
0.01 for a number of years, butnow that's gone up to 5.25.
(01:35):
Really is what you can do interms of?
You know you can't do anythingabout the, the base rate element
, but you can do something aboutthe rate that the bank charge
you.
Um, hopefully, base rate may begoing down.
Um, I don't think it will besoon.
(01:56):
Maybe september is is what I'm,you know when I'm reading all
the information on that.
Speaker 1 (02:01):
That's what we're hoping, I guess that's what
we're hoping for.
Speaker 2 (02:04):
I think everyone's hoping for that to go down.
But what I think you're goingto find is that base rate.
Once it does start dropping,it's only going to be, you know,
slowly.
It's not going to suddenly godown by a huge amount, so you're
still going to have a higherrate than what people have been
used to over the last couple ofyears.
Possibly that the new norm maybe around 4% 4.5% going forward
(02:30):
Hopefully I'm wrong on that andit goes down again a little bit
further.
But yeah, so I think we're justtrying to look at ways to maybe
save a little bit of money onyour repayments and free up a
bit of cash flow in the business.
Speaker 1 (02:45):
Correct.
Okay, cool, right.
So let me just thanks for that.
Let's just kind of do a bit ofa quick intro of ourselves.
So for everyone out there,that's me looking a bit smarter.
I'm like 50th birthday actually.
I'm a bit older now.
I'm Aaron and I'm the owner andCEO of Samara Samara Global.
Bit older now, I'm Aaron andI'm the owner and CEO of Samara
(03:08):
Samara Global.
Samara has been around 20 oddyears now helping dentists
across the UK with financing,accounting, tax, all that type
of stuff.
So we've got a lot ofexperience, a lot of grey hair
experience advising all shapesand sizes of healthcare
professionals.
I'm also the owner of SemeraGlobal, which is a team based
overseas where we support otheraccountancy firms with all their
(03:29):
offshoring and accountancyneeds.
I also have a foot andownership of the Neantree Dental
Group, which is owned and runby my wife, smita, a dentist.
So we've got a wealth ofexperience of understanding
dentistry.
And what we've seen is, I thinkit's over the last 10, and what
we've seen is, I think over thelast 10 years, we've seen a lot
of acquisitions happen ofpractices.
(03:50):
Over the last few years, um,when interest rates were lowest
down, was mentioning.
Now we're in a differentclimate.
Um, so in those days you haveso much competition to buy a
practice, you know the practicecomes to market and everyone's
jumping on the bandwagon to tryand buy it, so it was a seller's
market.
Now it's the other way around,in my view.
It's a buyer's market.
(04:12):
Okay, interest rates are higher, so people are more
questionable and choosy aboutwhat they're going to buy, and
sellers who don't conform ordon't kind of present their
practice in the best light,they're going to struggle to
sell them.
That's my opinion and my view,and we're seeing that across the
board actually now.
So that's kind of a quick introabout myself.
(04:33):
How about you, dan?
You look a lot better there aswell.
Speaker 2 (04:37):
Well, I think that is a well go.
I'm having to keep the hair abit shorter to stop the grey
hairs coming through.
Now that's all right.
Yeah, so I'm dan fearing.
So I've worked at samira nowfor five years.
Um, I'm a finance broker in myformer career.
Um I worked for rbs for 20years.
In the last 10 years of that Iwas in the healthcare department
(05:00):
.
So you know, dealing withdentists, um, pharmacies, gps,
veterinary practices, so verymuch health care based, making
sure that you're arrangingfinance for them, relationship
managing.
So it was also.
It was quite a nice fit when Iwhen I left the bank to come to
Samira, because obviously we doall those type of services.
Speaker 1 (05:20):
Yeah, yeah, absolutely OK, cool, thank you.
So let's crack on a bit more.
So, do you want to take it away?
Dan, yeah, so why consider?
Speaker 2 (05:27):
refinancing, yeah, yeah, so why would you consider
refinancing?
So, like I was saying before,um, obviously interest rates
have steadily increased over thethe last couple of years, which
has had an impact in terms ofwhat people are paying for their
loans.
So you may not have sort oflooked at this in the past.
You know your rate was whatyour rate was and you sort of
(05:49):
just carried on repaying yourfacility.
But you do sort of have acontrol over you know the rate
the bank charge you.
We've got some slides later.
It's all comparisons.
But you know if you're currentlypaying, you know, above 3%,
there are lenders out there inthe marketplace that can do
(06:11):
maybe two and a half plus base.
So that can have quite a bigimpact in terms of what you pay
on a monthly basis.
And the other thing as wellthat we've noticed is that
there's quite a few lenders thathave sort of moved away from
the market as well and come out.
So if you're currently with alender that's no longer you know
(06:34):
, arranging finance to thesector and not helping you grow
Again, that could be anotherreason to look at.
Is it time to maybe refinancewith a bank that can help me
grow and sort of move forward,because if they can't arrange
finance for you, you sort of putin quite a difficult position,
really sort of moving forward.
(06:54):
So you know, there's a coupleof sort of things to look at
really when you, when you'relooking at refinancing.
So we've seen we've seen.
Speaker 1 (07:01):
Actually, on that note that we've seen quite a.
This is a few years ago.
A couple of years ago, one ofthe big lenders, who was new to
the market, was very kind ofactive and trying to secure
loans or provide legacy loanswhich are probably not at
competitive rates.
Okay, so that's definitely animpetus to actually reconsider
(07:32):
it and, as you said, if you'rewanting to exit those types of
loans and grow further, it's animportant thing to look at it
and look at your contracts.
Get in touch with us and thereare ways to get out of any kind
of term.
Just if the lender's not in themarket anymore.
Um, there may be ways to exitthose types of arrangements
(07:52):
because obviously the fca may beable to support you on that as
well correct, yeah, yeah.
Speaker 2 (07:57):
And also like, if you've done a startup, um, you
know, a few years back, um,startup finance tends to be a
little bit more expensivebecause you know the banks see
it as a risk because they'retaking a chance on a brand new
business.
We, we, very much like startupsand we do a lot of startup
practices because you know, we,we, we understand them and we
(08:18):
can make sure we lend to them inthe correct way.
But the rates seem to beslightly higher.
But the weird thing with bankpolicies is, once you've got a
couple of years of accounts, youknow you're in a fully
established business.
So what you could do, if you'rehonest, you know you started up
a practice and you're on ahigher rate again, that could be
an opportunity to refinancethat onto.
(08:39):
You know a lower rate goingforward, because just because
you you've got a loan for 15years doesn't mean you have to
be on that same rate for 15years.
You could move that to anotherlender and reduce the rate that
you're currently paying yeah,yeah, okay and so, okay.
Speaker 1 (08:55):
So valid reasons to refinance anyone who's got loans
okay, especially anyone who'snot, whose bank isn't in the
sector anymore.
I think that's a reallyimportant point.
Yeah, okay, let's move on.
I think that's right.
So key benefits.
Speaker 2 (09:13):
Yeah, so a bit like we sort of touched on a little
bit in terms of refinance, socost savings, so saving money in
terms of your monthlyrepayments.
You know, by reducing the ratethat you're being charged by the
bank, you know your monthlyrepayments, you know, by
reducing the rate that you'rebeing charged by the bank, you
know your monthly repaymentswill go down.
By reducing your monthlyrepayments, obviously that'll
have an impact on your cash flow.
(09:33):
So you've got more money withinthe business that you can
either use to, you know, investor save if you want to do that
as well.
We've also found as well withthe sector is that sometimes you
may have your main loan but youcould also have some other
smaller loans which are on shortrepayments but, you know, on a
(09:55):
higher interest rate.
You know you can consolidatethat debt into maybe one, one
loan over a longer period oftime.
Again, that will help with your, your cash flow in terms of the
business as well, becauseobviously you're paying, you
know, maybe a 50k loan over fiveyears, the repayments and that
are going to be quite high, butif you turned it out, maybe over
a longer period of time, thatwill reduce your monthly
(10:18):
repayments.
Um, even if you've got a loanalready and you might have had
it for 10 years or so, but youown the freehold and you want to
turn that loan out over alonger period of time Again,
refinancing that over a longerperiod would again reduce your
monthly repayments so you coulddo that again to help with the
(10:39):
repayments for your cash flowpayments, for you know, your
cash flow.
And then security.
We've we've come across this alot recently.
Um, in terms of some of thelenders that you sort of touched
on earlier, where they cameinto the market and were quite
new to it and they were doingthings that not all the other
lenders do and sometimes theywere asking for sort of extra
(11:01):
security as part of thetransaction.
Sometimes they were asking forsort of extra security as part
of the transaction.
A lot of lenders within thehealth care space and especially
the dental market will do thelending unsecured.
If a lender has like a secondlegal charge over your
residential property you know,does it need to be there Could
you refinance and release thatcharge that the bank's currently
(11:25):
holding?
Because if they do hold asecond legal charge on the
property, if you wanted to moveand change homes, you would have
to get consent from that bankfor them to agree for the move,
and the charge would need to bemoved across as part of that,
which would have.
One, you've got to get thebank's consent and also you're
(11:45):
going to have extra securitycosts because that security
would also need to be removedsecurity costs because that
security would also need to beremoved.
So another reason is, say one,you could, you know, reduce the
rate that you're paying and two,you could get rid of that extra
security that you know is tiedinto your business loan and not
everyone's comfortable with that.
Not everyone wants all theireggs in one basket.
(12:05):
You know you may, you knowworst case scenario, if
something did happen with thebusiness.
Um, you know you don't wantyour property residential
property to be involved in thattransaction as well.
So you know a lot of peoplelike to keep it separate.
So it could again also be anopportunity to look at that and
split the business and you knowyour personal sort of properties
(12:26):
.
Speaker 1 (12:27):
Sure, if I could add one other bit, I was working on
another client that I know thathas a lot of short-term debt.
Okay, over COVID, that they hadfinancial issues and ups and
downs and therefore, rather thansecuring a loan with one of the
bigger lenders or well-knownlenders, they've taken on
short-term debt which is very,very expensive, higher interest
(12:48):
rates and suddenly, before youknow, they've got hundreds of
thousands or even more inshort-term debt where they're
having to pay, month by month,large, large amounts of money
which is killing their cash flow.
Um, so for anyone in thatsituation, there is a root out.
If you've got lots ofshort-term debt in your business
, um, it's about consolidating,understanding what the basically
(13:11):
putting a full breakdown ofwhat debts you do have with
which lenders and then trying to, okay, work with someone like
ourselves to say right, weunderstand, you've got debt of X
with these different lenders.
Let's try and consolidate itinto one loan with another party
over a longer period of time,which will then suddenly improve
your cash flow.
Speaker 2 (13:31):
So it makes it manageable as well.
As well, really, because ifyou're paying loads and loads of
short-term debt, you know atthe time it probably served the
purpose and it seems a good idea.
But if there's a lot of loanson short-term debt, the
repayments are so expensive itcan sort of stop the business
growing going forward.
Speaker 1 (13:48):
Yeah, correct, so you , so you want that cash flow so
it's so important to have thataddressed early.
So do you want to run throughthis example, Dan?
Speaker 2 (13:56):
Yeah, so this is just a nice simple basic example
really.
So it's based on if you had aloan of £400,000 over 15 years
at a rate of 4% plus base it wasa base at the moment 5.25.
The monthly repayments on thatwould be around 4,116 pounds.
If you refinance that over thesame term, you know same amount,
(14:20):
but at two and a half now therepayments on that go down to
3,765 pounds.
So I know it doesn't seem a lot, but that's a monthly saving of
around £359.
But if you do that over the termof the loan, you know that
that's about £63,000 so andalthough you've got that okay,
(14:43):
it doesn't seem too much on amonth-to-month basis, but if you
look at over the term of theloan, it can save you a
significant amount of money ofyou know making sure you've got
the right rate for the loan.
It can save you a significantamount of money of you know
making sure you've got the rightrate for the loan that you've
taken out yeah, totally.
Speaker 1 (14:56):
I think that that's a great example, very simple but
very effective.
Yeah, and obviously the largerthe loan, the larger the saving
that would be though exactly,exactly cool.
So, but what are the?
What are the catch?
Yeah, yeah.
Speaker 2 (15:10):
So you know we've we've spoke about the plus side.
You know there's, you knowthere's always a positive but
along with that is a negative.
So the other things you need toconsider really when you're
doing the refinances is theother costs that sort of come
along with refinancing.
So if you're moving from onebank to another, you know you're
going to get an arrangement feewith the lender, although there
(15:33):
are banks in the market nowthat can arrange refinance
without an arrangement fee.
So what we do, we go out to thewhole market and give you your
different options, but there arebanks out there that will do it
without an arrangement fee.
You also get the valuation ofthe practice again.
(15:54):
Um, a bank would want to knowthat when they're lending
against it is what the value ofthe goodwill is, or maybe the
freehold, so they would need avaluation again.
There are some lenders outthere that don't need a
valuation of the goodwill.
So again it's, it depends onwho you're talking to, but you
will have some legal costs inthere as well.
(16:16):
So illegal costs will be yoursolicitor moving the security
for the bank and acting for thebank to to put security in place
.
If you're just doing arefinance and it's like for like
the, the legal cost shouldn'tbe that high because you're just
moving in it for one bank toanother.
If you're using the samesolicitor who did the work
(16:36):
initially, again, that may saveyou.
But you know there are othercosts that you need to factor in
and then the early repaymentpenalties as well.
So there are some businessloans that have a an early
repayment penalty.
You need to understand thatbefore you move moving any loans
and you need to factor thatinto your costs.
A lot of banks will have maybelike a timed early repayment
(17:00):
penalty.
It might be for a number ofyears, but there are other banks
that do it for a you know thefull term of the loan.
So again, you need to factorthat in.
There are some banks you may beable to push back on it if
they're not lending anymorebecause you know they're sort of
putting you in a position whereyou know you can't get any more
funds from them.
(17:20):
So in terms of treatingcustomers fairly, how can they
charge you a fee?
If you're arranging a new loan,maybe to to purchase a second
site or refinancing or and doingsome expansion of where you are
?
You know you could possiblypush back on them.
So again, talk to us about that.
We've got a lot of scenarioswhere we can certainly look at
(17:42):
that and then we have we havesuccessfully done that.
Speaker 1 (17:45):
we have successfully been yeah, we've been very
successful, yeah, where wherepeople have been told there's
early repayment charges,particularly with those banks
that aren't in the sectoranymore, and they'll think, oh,
I can't move the loan.
Oh, yes, you can.
All right, we know how to do it, so get in touch if you're in
that situation scenario.
Yeah, definitely.
Speaker 2 (18:05):
And then, in terms of extending the loan, you need to
take into account, although youmay save on a monthly amount
which is great for your cashflow, you may over the term of
the loans or pay more interestbecause if you're doing the loan
over a longer period of time soif you only have like 10 years
left but you do a new loan for15 years obviously there will be
(18:27):
extra interest on that.
That you need to take intoaccount.
But you know it can still beworth doing if it's saving you
money in terms of your workingcapital and, you know, helping
your cash flow because obviouslyyou are saving on those monthly
costs.
But these are things that youneed to to bear in mind and I
don't think it'd be right for usto sort of just give you all
(18:47):
the upside and and not talkabout the the possible.
You know cons, that will bepart of it yeah, for sure, um.
Speaker 1 (18:56):
So what's next?
Speaker 2 (18:57):
yeah.
So what's next?
So in terms of looking at this,so if you wanted, you know
you've had a look at yourexisting loan agreement.
You're you're happy to sort ofmove forward.
You, what you need to do isexplore with the lenders really,
in terms of you know what's outthere, what's in the market,
the type of information thatthey'll need to see.
So they'll need to understandyour existing loan.
(19:19):
So you know you might have acopy of your loan agreement or
be able to sort of break downwhat your existing loan payments
are.
Um, they'll need income andexpenditure, so they'll need to
understand what your income is,what your outgoings are, your
assets, last couple of years ofpractice accounts, so they can
get an idea of serviceabilityfor the loan, tax returns.
(19:43):
So I can see what you're takingPersonal, business, bank
statements and CVs.
Really it's not a long list anda lot of this stuff you
probably would have sort ofready already.
Your bank statements now,especially with Xero, can be
printed off quite quickly andyour accounts will be up to date
.
So it's not a long list thatyou would need to put together.
(20:04):
But that's basically theinformation that we would need
to see to.
But that's basically the the,the information that we would
need to see to take anythingforward for you okay, cool, cool
, great, um, so can they do itthemselves you can do it
yourself.
I suppose.
Yeah, yeah, if you're, ifyou've got the time to do it.
I think the thing with us interms of using a finance broker,
(20:25):
like I put on that one time,have you got time to go to five
or six different banks and getall the different terms from
them and go through their, theirapplications?
Um, the thing to bear in mindis with with ourselves is we've
got the experience.
So we have.
I've worked in the bank for 20years, worked for Samira for
(20:46):
five years, nigel a lot longer.
I don't want to put a time on it, but you know we've got many
years experience in terms ofworking in the banking sector
and especially in health care.
So we can gather all thisinformation for you.
We can structure the deal in away that banks know and
(21:07):
understand.
Um, we will send it through to.
You know, we'll send it to fiveor six different banks and get
their offers.
What happens is that they'llsend back something called their
offers and we'll put it into acomparison table so it will
break down the you know how muchthey can do the term they can
do the rate they can do the termthey can do the rate they can
do any security.
(21:28):
And when I talk about securitysecurity in terms of you know
the business and we will presentthat back to clients in a nice
professional way so theyunderstand that you know they're
getting the best in the marketreally they can see the terms
that are out there.
Unfortunately, if you go to onebank, they're not going to say,
(21:50):
oh yeah, this is what we can do.
But, by the way, there's a bankdown the road that could
probably do this at a percentlower or do it without a
arrangement fee on refinance.
So by going through us, youactually get all the different
options available to you in themarketplace and then you can
make a considered decision aboutyou know who you want to go
ahead.
By going through us, youactually get all the different
options available to you in themarketplace and then you can
(22:13):
make a considered decision aboutwho you want to go ahead with
in terms of the finance.
Speaker 1 (22:19):
OK, cool.
Speaker 2 (22:27):
Yeah, I thought I'd just put this one in, really,
because we're talking about, andyou know, saving money in terms
of repayments, but what I justwant to talk about is cost
savings that you can make withour buying group.
So we created the buying groupabout four years ago now.
Speaker 1 (22:39):
It must be um three years later.
Three is it three years yeah.
Speaker 2 (22:43):
So the buying group's been up and running.
We've got over 100 um practiceson the buying group, but
basically it was formed to tryand give practices the same sort
of buying power that corporatesget, because they've, you know,
a large uh company, so are ableto negotiate good prices with
the buying group.
Because we've got a lot ofpeople on it, we're able to
(23:04):
negotiate good prices for themand it basically helps them save
money in terms of the practice.
So, for see, we're trying tolook at two things really.
So you're looking at savingmoney in terms of your monthly
loan repayments, but also have alook at what savings you can
make in terms of running thepractice, sort of going forward.
Um, aaron, if you can just goto the next slide for me, sure,
(23:28):
yeah.
So the buying groups, you know,100% free to join.
There's no hidden charges, nofees from us whatsoever, and
basically our partners will giveyou a better deal by going
through the buying group thanthey would if you went to them
directly.
So we've got a number ofpartners on there.
So one of the most popular onesis consumables.
(23:49):
So we've partnered with rightsand you know our practices save
money on their consumablesorders.
You know things that you needto pay for.
You know to run your practiceand you'll get a discount with
rights.
We've also got patient plans onthere as well, so you may have
a patient plan or been thinkingabout setting up a patient plan.
Um, you know, we've gotpartners on there that can help
(24:12):
you set one up from scratch orreview your existing prices that
you're paying and possibly putin place a cheaper deal for you
getting the same level ofservice.
But you know, saving money onthat.
And then another popular one isutilities.
(24:35):
So, on utilities, we've got acompany out there that can
basically look at the utilitiesthat you pay at the moment you
know telecom, you know yourelectric, et cetera and they
will go out to the market andthey will look at all the
different prices and all thedifferent tariffs that are out
there and present that back toyou and again look to save you
money in terms of your practicecosts.
I suppose the thing that youwant to look at really is if you
(24:59):
can save money on your practicecosts, if you are maybe
thinking of selling in the nearfuture costs.
If you are maybe thinking ofselling in the near future, um,
obviously, any savings that youcould make in terms of that
would add money onto your bottomline.
So actually, if you werethinking of selling, if you can
control those costs, you knowthat will help you because you
(25:20):
know a lot of practicesvaluations are done on ebitda.
So if you can um control thatcost, then obviously that could
add value to to your practiceyeah, fair point, okay, and so
in summary.
So in summary, yeah, so don't beafraid to look at your
refinance options, you know.
If it's something that you'vebeen thinking about and you want
(25:41):
to reduce your monthly costs,you know, just just reach out to
us.
You know we're more than happyto have a conversation with you
about you know, what thepossibilities are, what you
could possibly save in terms ofthe practice.
And I say it's the initialconversation is 100% free.
You can speak to myself, youcan speak to Aaron, you can
(26:01):
speak to Nigel.
We'll do evening calls.
You know, like we're doing now,not really, you know.
So we're quite free.
We understand you're busyduring the day, so we can do an
evening call if that fits into.
You know your busy schedules.
And then, um, if you're lookingto save money on your practice
in terms of your costs, you knowthe buying group's free.
(26:23):
Yeah, have a look at it, it'scertainly worth doing, and say
it's 100% free to join, and thenjust reach out to us.
Speaker 1 (26:31):
Okay, thanks, ted.
We've got a question here On astartup.
I used all my available fundsto buy the premises out of
Ruppers.
I found it difficult to securefinance and when I got an
agreement in principle, thecommercial mortgage rates were
near 11% at that time.
I've managed to secure financefor the kit out.
However, I'm worried about cashflow.
Or is it considered anunencumbered remortgage?
(26:54):
Okay, how easy is this?
Primarily because I've onlyowned the property for three
months.
Speaker 2 (27:01):
So is that the fit out side of things they want to
look at?
Speaker 1 (27:05):
I'm not too sure it could be the fit out or it could
be for the actual property side, because they bought the
property outright, yeah, andmaybe they want to and they want
to mortgage for that premises.
So I think, bottom line, thankyou.
Firstly, thank you for thequestion.
Okay, I don't want to give youthe wrong advice here.
(27:25):
My honest advice would be toreach out to Dan directly and he
can look at what you've doneexactly.
You're right, the rates did goup to nearly 11% a little while
back.
They've come down now, so nowcould be a good time to get a
mortgage on the property.
Okay, is the cash flow to payfor the kit out?
(27:48):
Yeah, okay, so yeah, I thinkthe bottom line is Dan, maybe we
can reach out.
Speaker 2 (27:56):
Yeah, I'm more than happy to have a conversation
about that, but is itunencumbered?
So the actual freehold bit?
You bought that outrightBecause you could gear up
against thehold bit.
You bought that outrightBecause you could really gear up
against the freehold if youbought that outright.
Speaker 1 (28:12):
Yeah, potentially Okay.
I think that's one for you totake offline.
Speaker 2 (28:17):
Yeah, I'm more than happy to reach out and have that
conversation.
Speaker 1 (28:19):
Yeah, let's do that.
And on that note, our contactdetails are all here.
Dan's the man really to talk toaround financing.
I can certainly help, but he'she's much better placed than I
am.
Um, as he does does it on a dayby day basis, um, so dan's
details are danfiracouk, andthat's his number.
(28:40):
Similarly, myself my details.
There's also nigel, as danmentioned.
We do have people booking callsregularly.
Most evenings we have callswith clients just to run through
the various scenarios forclients.
So then, to get a better idea.
So on that note, any finalpoints from you, dan, we're
coming up to half an hour.
(29:00):
I think it's a good time.
We don't want to bore peopletoo much.
Speaker 2 (29:04):
Is that me boring people?
Yeah, thanks, that is that meboring people?
Yeah, thanks.
Um, now I'll just say, if, ifyou've got um any questions or
anything like that, yeah, justjust reach out to me.
I'm happy to sort of just gothrough in a call and then also
I can get into the detail aboutwhat you're looking to do and
and fully understand it and andtry and help in any way we can
right, okay, thank you.
Speaker 1 (29:24):
Any final questions from anyone else, which I'll
keep keep open for anothercouple of seconds.
If not, we will wrap it up thisevening.
Thank you very much.
Okay, thank you Thanks.
Speaker 2 (29:35):
Bye.
Okay, good evening, good evening.
Right Before I kick off, I wantto make sure everything's
working technology-wise.
I think it is.
Yes, I think it's working,which is a good sign.
So, right, good eveningeveryone.
Welcome to this webinar.
As we've nicely put on thiswebinar at the bottom, my name's
(00:28):
Aaron and I've got Dan here.
Hey, dan, how are you doing?
Very good, how's everyone?
Hopefully good, hopefully good.
Now, what we are going to betalking about this evening,
we'll keep it relatively briefand short, but hopefully to the
point.
Um is refinancing um anyexisting loans.
Now, without further ado.
(00:49):
Do you want to just do a?
Give a summary down what'shappened in the last few years
in terms of interest rates?
Speaker 2 (00:55):
so pick for people to just to give a recap where's it
going, maybe hopefully yeah, so, yeah, so over the last couple
of years there's been a steadyrise in terms of interest rates,
going up, unfortunately, forfor everyone you know, not just
businesses, but you knowhomeowners as well.
Um, obviously there's beenanother factors in including
(01:15):
that include, like you know,inflation, etc.
Um, yeah, that has put apressure in terms of what people
have been paying, because wehave been used to a lower
interest rate, or Bank ofEngland interest rate being at
0.01 for a number of years, butnow that's gone up to 5.25.
(01:35):
Really is what you can do interms of?
You know you can't do anythingabout the, the base rate element
, but you can do something aboutthe rate that the bank charge
you.
Um, hopefully, base rate may begoing down.
Um, I don't think it will besoon.
(01:56):
Maybe september is is what I'm,you know when I'm reading all
the information on that.
Speaker 1 (02:01):
That's what we're hoping, I guess that's what
we're hoping for.
Speaker 2 (02:04):
I think everyone's hoping for that to go down.
But what I think you're goingto find is that base rate.
Once it does start dropping,it's only going to be, you know,
slowly.
It's not going to suddenly godown by a huge amount, so you're
still going to have a higherrate than what people have been
used to over the last couple ofyears.
Possibly that the new norm maybe around 4% 4.5% going forward
(02:30):
Hopefully I'm wrong on that andit goes down again a little bit
further.
But yeah, so I think we're justtrying to look at ways to maybe
save a little bit of money onyour repayments and free up a
bit of cash flow in the business.
Speaker 1 (02:45):
Correct.
Okay, cool, right.
So let me just thanks for that.
Let's just kind of do a bit ofa quick intro of ourselves.
So for everyone out there,that's me looking a bit smarter.
I'm like 50th birthday actually.
I'm a bit older now.
I'm Aaron and I'm the owner andCEO of Samara Samara Global.
Bit older now, I'm Aaron andI'm the owner and CEO of Samara
(03:08):
Samara Global.
Samara has been around 20 oddyears now helping dentists
across the UK with financing,accounting, tax, all that type
of stuff.
So we've got a lot ofexperience, a lot of grey hair
experience advising all shapesand sizes of healthcare
professionals.
I'm also the owner of SemeraGlobal, which is a team based
overseas where we support otheraccountancy firms with all their
(03:29):
offshoring and accountancyneeds.
I also have a foot andownership of the Neantree Dental
Group, which is owned and runby my wife, smita, a dentist.
So we've got a wealth ofexperience of understanding
dentistry.
And what we've seen is, I thinkit's over the last 10, and what
we've seen is, I think over thelast 10 years, we've seen a lot
of acquisitions happen ofpractices.
(03:50):
Over the last few years, um,when interest rates were lowest
down, was mentioning.
Now we're in a differentclimate.
Um, so in those days you haveso much competition to buy a
practice, you know the practicecomes to market and everyone's
jumping on the bandwagon to tryand buy it, so it was a seller's
market.
Now it's the other way around,in my view.
It's a buyer's market.
(04:12):
Okay, interest rates are higher, so people are more
questionable and choosy aboutwhat they're going to buy, and
sellers who don't conform ordon't kind of present their
practice in the best light,they're going to struggle to
sell them.
That's my opinion and my view,and we're seeing that across the
board actually now.
So that's kind of a quick introabout myself.
(04:33):
How about you, dan?
You look a lot better there aswell.
Speaker 2 (04:37):
Well, I think that is a well go.
I'm having to keep the hair abit shorter to stop the grey
hairs coming through.
Now that's all right.
Yeah, so I'm dan fearing.
So I've worked at samira nowfor five years.
Um, I'm a finance broker in myformer career.
Um I worked for rbs for 20years.
In the last 10 years of that Iwas in the healthcare department
(05:00):
.
So you know, dealing withdentists, um, pharmacies, gps,
veterinary practices, so verymuch health care based, making
sure that you're arrangingfinance for them, relationship
managing.
So it was also.
It was quite a nice fit when Iwhen I left the bank to come to
Samira, because obviously we doall those type of services.
Speaker 1 (05:20):
Yeah, yeah, absolutely OK, cool, thank you.
So let's crack on a bit more.
So, do you want to take it away?
Dan, yeah, so why consider?
Speaker 2 (05:27):
refinancing, yeah, yeah, so why would you consider
refinancing?
So, like I was saying before,um, obviously interest rates
have steadily increased over thethe last couple of years, which
has had an impact in terms ofwhat people are paying for their
loans.
So you may not have sort oflooked at this in the past.
You know your rate was whatyour rate was and you sort of
(05:49):
just carried on repaying yourfacility.
But you do sort of have acontrol over you know the rate
the bank charge you.
We've got some slides later.
It's all comparisons.
But you know if you're currentlypaying, you know, above 3%,
there are lenders out there inthe marketplace that can do
(06:11):
maybe two and a half plus base.
So that can have quite a bigimpact in terms of what you pay
on a monthly basis.
And the other thing as wellthat we've noticed is that
there's quite a few lenders thathave sort of moved away from
the market as well and come out.
So if you're currently with alender that's no longer you know
(06:34):
, arranging finance to thesector and not helping you grow
Again, that could be anotherreason to look at.
Is it time to maybe refinancewith a bank that can help me
grow and sort of move forward,because if they can't arrange
finance for you, you sort of putin quite a difficult position,
really sort of moving forward.
(06:54):
So you know, there's a coupleof sort of things to look at
really when you, when you'relooking at refinancing.
So we've seen we've seen.
Speaker 1 (07:01):
Actually, on that note that we've seen quite a.
This is a few years ago.
A couple of years ago, one ofthe big lenders, who was new to
the market, was very kind ofactive and trying to secure
loans or provide legacy loanswhich are probably not at
competitive rates.
Okay, so that's definitely animpetus to actually reconsider
(07:32):
it and, as you said, if you'rewanting to exit those types of
loans and grow further, it's animportant thing to look at it
and look at your contracts.
Get in touch with us and thereare ways to get out of any kind
of term.
Just if the lender's not in themarket anymore.
Um, there may be ways to exitthose types of arrangements
(07:52):
because obviously the fca may beable to support you on that as
well correct, yeah, yeah.
Speaker 2 (07:57):
And also like, if you've done a startup, um, you
know, a few years back, um,startup finance tends to be a
little bit more expensivebecause you know the banks see
it as a risk because they'retaking a chance on a brand new
business.
We, we, very much like startupsand we do a lot of startup
practices because you know, we,we, we understand them and we
(08:18):
can make sure we lend to them inthe correct way.
But the rates seem to beslightly higher.
But the weird thing with bankpolicies is, once you've got a
couple of years of accounts, youknow you're in a fully
established business.
So what you could do, if you'rehonest, you know you started up
a practice and you're on ahigher rate again, that could be
an opportunity to refinancethat onto.
(08:39):
You know a lower rate goingforward, because just because
you you've got a loan for 15years doesn't mean you have to
be on that same rate for 15years.
You could move that to anotherlender and reduce the rate that
you're currently paying yeah,yeah, okay and so, okay.
Speaker 1 (08:55):
So valid reasons to refinance anyone who's got loans
okay, especially anyone who'snot, whose bank isn't in the
sector anymore.
I think that's a reallyimportant point.
Yeah, okay, let's move on.
I think that's right.
So key benefits.
Speaker 2 (09:13):
Yeah, so a bit like we sort of touched on a little
bit in terms of refinance, socost savings, so saving money in
terms of your monthlyrepayments.
You know, by reducing the ratethat you're being charged by the
bank, you know your monthlyrepayments, you know, by
reducing the rate that you'rebeing charged by the bank, you
know your monthly repaymentswill go down.
By reducing your monthlyrepayments, obviously that'll
have an impact on your cash flow.
(09:33):
So you've got more money withinthe business that you can
either use to, you know, investor save if you want to do that
as well.
We've also found as well withthe sector is that sometimes you
may have your main loan but youcould also have some other
smaller loans which are on shortrepayments but, you know, on a
(09:55):
higher interest rate.
You know you can consolidatethat debt into maybe one, one
loan over a longer period oftime.
Again, that will help with your, your cash flow in terms of the
business as well, becauseobviously you're paying, you
know, maybe a 50k loan over fiveyears, the repayments and that
are going to be quite high, butif you turned it out, maybe over
a longer period of time, thatwill reduce your monthly
(10:18):
repayments.
Um, even if you've got a loanalready and you might have had
it for 10 years or so, but youown the freehold and you want to
turn that loan out over alonger period of time Again,
refinancing that over a longerperiod would again reduce your
monthly repayments so you coulddo that again to help with the
(10:39):
repayments for your cash flowpayments, for you know, your
cash flow.
And then security.
We've we've come across this alot recently.
Um, in terms of some of thelenders that you sort of touched
on earlier, where they cameinto the market and were quite
new to it and they were doingthings that not all the other
lenders do and sometimes theywere asking for sort of extra
(11:01):
security as part of thetransaction.
Sometimes they were asking forsort of extra security as part
of the transaction.
A lot of lenders within thehealth care space and especially
the dental market will do thelending unsecured.
If a lender has like a secondlegal charge over your
residential property you know,does it need to be there Could
you refinance and release thatcharge that the bank's currently
(11:25):
holding?
Because if they do hold asecond legal charge on the
property, if you wanted to moveand change homes, you would have
to get consent from that bankfor them to agree for the move,
and the charge would need to bemoved across as part of that,
which would have.
One, you've got to get thebank's consent and also you're
(11:45):
going to have extra securitycosts because that security
would also need to be removedsecurity costs because that
security would also need to beremoved.
So another reason is, say one,you could, you know, reduce the
rate that you're paying and two,you could get rid of that extra
security that you know is tiedinto your business loan and not
everyone's comfortable with that.
Not everyone wants all theireggs in one basket.
(12:05):
You know you may, you knowworst case scenario, if
something did happen with thebusiness.
Um, you know you don't wantyour property residential
property to be involved in thattransaction as well.
So you know a lot of peoplelike to keep it separate.
So it could again also be anopportunity to look at that and
split the business and you knowyour personal sort of properties
(12:26):
.
Speaker 1 (12:27):
Sure, if I could add one other bit, I was working on
another client that I know thathas a lot of short-term debt.
Okay, over COVID, that they hadfinancial issues and ups and
downs and therefore, rather thansecuring a loan with one of the
bigger lenders or well-knownlenders, they've taken on
short-term debt which is very,very expensive, higher interest
(12:48):
rates and suddenly, before youknow, they've got hundreds of
thousands or even more inshort-term debt where they're
having to pay, month by month,large, large amounts of money
which is killing their cash flow.
Um, so for anyone in thatsituation, there is a root out.
If you've got lots ofshort-term debt in your business
, um, it's about consolidating,understanding what the basically
(13:11):
putting a full breakdown ofwhat debts you do have with
which lenders and then trying to, okay, work with someone like
ourselves to say right, weunderstand, you've got debt of X
with these different lenders.
Let's try and consolidate itinto one loan with another party
over a longer period of time,which will then suddenly improve
your cash flow.
Speaker 2 (13:31):
So it makes it manageable as well.
As well, really, because ifyou're paying loads and loads of
short-term debt, you know atthe time it probably served the
purpose and it seems a good idea.
But if there's a lot of loanson short-term debt, the
repayments are so expensive itcan sort of stop the business
growing going forward.
Speaker 1 (13:48):
Yeah, correct, so you , so you want that cash flow so
it's so important to have thataddressed early.
So do you want to run throughthis example, Dan?
Speaker 2 (13:56):
Yeah, so this is just a nice simple basic example
really.
So it's based on if you had aloan of £400,000 over 15 years
at a rate of 4% plus base it wasa base at the moment 5.25.
The monthly repayments on thatwould be around 4,116 pounds.
If you refinance that over thesame term, you know same amount,
(14:20):
but at two and a half now therepayments on that go down to
3,765 pounds.
So I know it doesn't seem a lot, but that's a monthly saving of
around £359.
But if you do that over the termof the loan, you know that
that's about £63,000 so andalthough you've got that okay,
(14:43):
it doesn't seem too much on amonth-to-month basis, but if you
look at over the term of theloan, it can save you a
significant amount of money ofyou know making sure you've got
the right rate for the loan.
It can save you a significantamount of money of you know
making sure you've got the rightrate for the loan that you've
taken out yeah, totally.
Speaker 1 (14:56):
I think that that's a great example, very simple but
very effective.
Yeah, and obviously the largerthe loan, the larger the saving
that would be though exactly,exactly cool.
So, but what are the?
What are the catch?
Yeah, yeah.
Speaker 2 (15:10):
So you know we've we've spoke about the plus side.
You know there's, you knowthere's always a positive but
along with that is a negative.
So the other things you need toconsider really when you're
doing the refinances is theother costs that sort of come
along with refinancing.
So if you're moving from onebank to another, you know you're
going to get an arrangement feewith the lender, although there
(15:33):
are banks in the market nowthat can arrange refinance
without an arrangement fee.
So what we do, we go out to thewhole market and give you your
different options, but there arebanks out there that will do it
without an arrangement fee.
You also get the valuation ofthe practice again.
(15:54):
Um, a bank would want to knowthat when they're lending
against it is what the value ofthe goodwill is, or maybe the
freehold, so they would need avaluation again.
There are some lenders outthere that don't need a
valuation of the goodwill.
So again it's, it depends onwho you're talking to, but you
will have some legal costs inthere as well.
(16:16):
So illegal costs will be yoursolicitor moving the security
for the bank and acting for thebank to to put security in place
.
If you're just doing arefinance and it's like for like
the, the legal cost shouldn'tbe that high because you're just
moving in it for one bank toanother.
If you're using the samesolicitor who did the work
(16:36):
initially, again, that may saveyou.
But you know there are othercosts that you need to factor in
and then the early repaymentpenalties as well.
So there are some businessloans that have a an early
repayment penalty.
You need to understand thatbefore you move moving any loans
and you need to factor thatinto your costs.
A lot of banks will have maybelike a timed early repayment
(17:00):
penalty.
It might be for a number ofyears, but there are other banks
that do it for a you know thefull term of the loan.
So again, you need to factorthat in.
There are some banks you may beable to push back on it if
they're not lending anymorebecause you know they're sort of
putting you in a position whereyou know you can't get any more
funds from them.
(17:20):
So in terms of treatingcustomers fairly, how can they
charge you a fee?
If you're arranging a new loan,maybe to to purchase a second
site or refinancing or and doingsome expansion of where you are
?
You know you could possiblypush back on them.
So again, talk to us about that.
We've got a lot of scenarioswhere we can certainly look at
(17:42):
that and then we have we havesuccessfully done that.
Speaker 1 (17:45):
we have successfully been yeah, we've been very
successful, yeah, where wherepeople have been told there's
early repayment charges,particularly with those banks
that aren't in the sectoranymore, and they'll think, oh,
I can't move the loan.
Oh, yes, you can.
All right, we know how to do it, so get in touch if you're in
that situation scenario.
Yeah, definitely.
Speaker 2 (18:05):
And then, in terms of extending the loan, you need to
take into account, although youmay save on a monthly amount
which is great for your cashflow, you may over the term of
the loans or pay more interestbecause if you're doing the loan
over a longer period of time soif you only have like 10 years
left but you do a new loan for15 years obviously there will be
(18:27):
extra interest on that.
That you need to take intoaccount.
But you know it can still beworth doing if it's saving you
money in terms of your workingcapital and, you know, helping
your cash flow because obviouslyyou are saving on those monthly
costs.
But these are things that youneed to to bear in mind and I
don't think it'd be right for usto sort of just give you all
(18:47):
the upside and and not talkabout the the possible.
You know cons, that will bepart of it yeah, for sure, um.
Speaker 1 (18:56):
So what's next?
Speaker 2 (18:57):
yeah.
So what's next?
So in terms of looking at this,so if you wanted, you know
you've had a look at yourexisting loan agreement.
You're you're happy to sort ofmove forward.
You, what you need to do isexplore with the lenders really,
in terms of you know what's outthere, what's in the market,
the type of information thatthey'll need to see.
So they'll need to understandyour existing loan.
(19:19):
So you know you might have acopy of your loan agreement or
be able to sort of break downwhat your existing loan payments
are.
Um, they'll need income andexpenditure, so they'll need to
understand what your income is,what your outgoings are, your
assets, last couple of years ofpractice accounts, so they can
get an idea of serviceabilityfor the loan, tax returns.
(19:43):
So I can see what you're takingPersonal, business, bank
statements and CVs.
Really it's not a long list anda lot of this stuff you
probably would have sort ofready already.
Your bank statements now,especially with Xero, can be
printed off quite quickly andyour accounts will be up to date
.
So it's not a long list thatyou would need to put together.
(20:04):
But that's basically theinformation that we would need
to see to.
But that's basically the the,the information that we would
need to see to take anythingforward for you okay, cool, cool
, great, um, so can they do itthemselves you can do it
yourself.
I suppose.
Yeah, yeah, if you're, ifyou've got the time to do it.
I think the thing with us interms of using a finance broker,
(20:25):
like I put on that one time,have you got time to go to five
or six different banks and getall the different terms from
them and go through their, theirapplications?
Um, the thing to bear in mindis with with ourselves is we've
got the experience.
So we have.
I've worked in the bank for 20years, worked for Samira for
(20:46):
five years, nigel a lot longer.
I don't want to put a time on it, but you know we've got many
years experience in terms ofworking in the banking sector
and especially in health care.
So we can gather all thisinformation for you.
We can structure the deal in away that banks know and
(21:07):
understand.
Um, we will send it through to.
You know, we'll send it to fiveor six different banks and get
their offers.
What happens is that they'llsend back something called their
offers and we'll put it into acomparison table so it will
break down the you know how muchthey can do the term they can
do the rate they can do the termthey can do the rate they can
do any security.
(21:28):
And when I talk about securitysecurity in terms of you know
the business and we will presentthat back to clients in a nice
professional way so theyunderstand that you know they're
getting the best in the marketreally they can see the terms
that are out there.
Unfortunately, if you go to onebank, they're not going to say,
(21:50):
oh yeah, this is what we can do.
But, by the way, there's a bankdown the road that could
probably do this at a percentlower or do it without a
arrangement fee on refinance.
So by going through us, youactually get all the different
options available to you in themarketplace and then you can
make a considered decision aboutyou know who you want to go
ahead.
By going through us, youactually get all the different
options available to you in themarketplace and then you can
(22:13):
make a considered decision aboutwho you want to go ahead with
in terms of the finance.
Speaker 1 (22:19):
OK, cool.
Speaker 2 (22:27):
Yeah, I thought I'd just put this one in, really,
because we're talking about, andyou know, saving money in terms
of repayments, but what I justwant to talk about is cost
savings that you can make withour buying group.
So we created the buying groupabout four years ago now.
Speaker 1 (22:39):
It must be um three years later.
Three is it three years yeah.
Speaker 2 (22:43):
So the buying group's been up and running.
We've got over 100 um practiceson the buying group, but
basically it was formed to tryand give practices the same sort
of buying power that corporatesget, because they've, you know,
a large uh company, so are ableto negotiate good prices with
the buying group.
Because we've got a lot ofpeople on it, we're able to
(23:04):
negotiate good prices for themand it basically helps them save
money in terms of the practice.
So, for see, we're trying tolook at two things really.
So you're looking at savingmoney in terms of your monthly
loan repayments, but also have alook at what savings you can
make in terms of running thepractice, sort of going forward.
Um, aaron, if you can just goto the next slide for me, sure,
(23:28):
yeah.
So the buying groups, you know,100% free to join.
There's no hidden charges, nofees from us whatsoever, and
basically our partners will giveyou a better deal by going
through the buying group thanthey would if you went to them
directly.
So we've got a number ofpartners on there.
So one of the most popular onesis consumables.
(23:49):
So we've partnered with rightsand you know our practices save
money on their consumablesorders.
You know things that you needto pay for.
You know to run your practiceand you'll get a discount with
rights.
We've also got patient plans onthere as well, so you may have
a patient plan or been thinkingabout setting up a patient plan.
Um, you know, we've gotpartners on there that can help
(24:12):
you set one up from scratch orreview your existing prices that
you're paying and possibly putin place a cheaper deal for you
getting the same level ofservice.
But you know, saving money onthat.
And then another popular one isutilities.
(24:35):
So, on utilities, we've got acompany out there that can
basically look at the utilitiesthat you pay at the moment you
know telecom, you know yourelectric, et cetera and they
will go out to the market andthey will look at all the
different prices and all thedifferent tariffs that are out
there and present that back toyou and again look to save you
money in terms of your practicecosts.
I suppose the thing that youwant to look at really is if you
(24:59):
can save money on your practicecosts, if you are maybe
thinking of selling in the nearfuture costs.
If you are maybe thinking ofselling in the near future, um,
obviously, any savings that youcould make in terms of that
would add money onto your bottomline.
So actually, if you werethinking of selling, if you can
control those costs, you knowthat will help you because you
(25:20):
know a lot of practicesvaluations are done on ebitda.
So if you can um control thatcost, then obviously that could
add value to to your practiceyeah, fair point, okay, and so
in summary.
So in summary, yeah, so don't beafraid to look at your
refinance options, you know.
If it's something that you'vebeen thinking about and you want
(25:41):
to reduce your monthly costs,you know, just just reach out to
us.
You know we're more than happyto have a conversation with you
about you know, what thepossibilities are, what you
could possibly save in terms ofthe practice.
And I say it's the initialconversation is 100% free.
You can speak to myself, youcan speak to Aaron, you can
(26:01):
speak to Nigel.
We'll do evening calls.
You know, like we're doing now,not really, you know.
So we're quite free.
We understand you're busyduring the day, so we can do an
evening call if that fits into.
You know your busy schedules.
And then, um, if you're lookingto save money on your practice
in terms of your costs, you knowthe buying group's free.
(26:23):
Yeah, have a look at it, it'scertainly worth doing, and say
it's 100% free to join, and thenjust reach out to us.
Speaker 1 (26:31):
Okay, thanks, ted.
We've got a question here On astartup.
I used all my available fundsto buy the premises out of
Ruppers.
I found it difficult to securefinance and when I got an
agreement in principle, thecommercial mortgage rates were
near 11% at that time.
I've managed to secure financefor the kit out.
However, I'm worried about cashflow.
Or is it considered anunencumbered remortgage?
(26:54):
Okay, how easy is this?
Primarily because I've onlyowned the property for three
months.
Speaker 2 (27:01):
So is that the fit out side of things they want to
look at?
Speaker 1 (27:05):
I'm not too sure it could be the fit out or it could
be for the actual property side, because they bought the
property outright, yeah, andmaybe they want to and they want
to mortgage for that premises.
So I think, bottom line, thankyou.
Firstly, thank you for thequestion.
Okay, I don't want to give youthe wrong advice here.
(27:25):
My honest advice would be toreach out to Dan directly and he
can look at what you've doneexactly.
You're right, the rates did goup to nearly 11% a little while
back.
They've come down now, so nowcould be a good time to get a
mortgage on the property.
Okay, is the cash flow to payfor the kit out?
(27:48):
Yeah, okay, so yeah, I thinkthe bottom line is Dan, maybe we
can reach out.
Speaker 2 (27:56):
Yeah, I'm more than happy to have a conversation
about that, but is itunencumbered?
So the actual freehold bit?
You bought that outrightBecause you could gear up
against thehold bit.
You bought that outrightBecause you could really gear up
against the freehold if youbought that outright.
Speaker 1 (28:12):
Yeah, potentially Okay.
I think that's one for you totake offline.
Speaker 2 (28:17):
Yeah, I'm more than happy to reach out and have that
conversation.
Speaker 1 (28:19):
Yeah, let's do that.
And on that note, our contactdetails are all here.
Dan's the man really to talk toaround financing.
I can certainly help, but he'she's much better placed than I
am.
Um, as he does does it on a dayby day basis, um, so dan's
details are danfiracouk, andthat's his number.
(28:40):
Similarly, myself my details.
There's also nigel, as danmentioned.
We do have people booking callsregularly.
Most evenings we have callswith clients just to run through
the various scenarios forclients.
So then, to get a better idea.
So on that note, any finalpoints from you, dan, we're
coming up to half an hour.
(29:00):
I think it's a good time.
We don't want to bore peopletoo much.
Speaker 2 (29:04):
Is that me boring people?
Yeah, thanks, that is that meboring people?
Yeah, thanks.
Um, now I'll just say, if, ifyou've got um any questions or
anything like that, yeah, justjust reach out to me.
I'm happy to sort of just gothrough in a call and then also
I can get into the detail aboutwhat you're looking to do and
and fully understand it and andtry and help in any way we can
right, okay, thank you.
Speaker 1 (29:24):
Any final questions from anyone else, which I'll
keep keep open for anothercouple of seconds.
If not, we will wrap it up thisevening.
Thank you very much.
Okay, thank you Thanks.
Speaker 2 (29:35):
Bye.
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