When it comes to financing the purchase of a new or existing health professional practice, if you are not a Dentist or Physician, there is a good chance that you will need to come up with a significant amount of the down payment on your own. Dentists and Physicians have typically benefited from their ability to obtain 100% financing from Canada’s major banks to purchase a dental practice or doctor clinic. To add icing on the cake, Dentists and Physicians often also qualify for additional financing for leasehold improvements and to purchase capital equipment required for their business.
Optometrists rejoice! You are now also qualified for 100% financing, that is, assuming you meet the bank’s criteria. One of the major banks that has spearheaded the inclusion of Optometrists for 100% financing – with the likes of their “Dr.” peers – is the Royal Bank of Canada (RBC), which has one of the biggest divisions in the country dedicated to serving healthcare professionals.
According to RBC, Optometrists who meet the following criteria are now eligible for 100% financing.
- Revenues from eyeglasses cannot be greater than 60% of total revenue.
- The optometrist must be a university-educated healthcare professional who has obtained their Doctor of Optometry (OD) designation.
- The optometrist must be licensed by their provincial regulatory body.
This is a sweeping change for Optometrists looking for financing when buying a business. The future looks bright. Speak with your banker regarding the new changes, or contact the writer below to make a connection.
Michael E.B. Taing is the managing lawyer for healthcare professionals at Hummingbird Lawyers LLP. For inquiries or consultation, please email firstname.lastname@example.org or email@example.com.