Choosing where to borrow money for your practice can have a significant impact, and community-based banks offer unique advantages that set them apart from large corporate banks. One of these advantages is their holistic approach to lending, where they consider the entirety of an individual, not just their financial credentials.
In the second part of a discussion on private practice financing, Michael is joined again by Rob Westhoven from Androscoggin Bank. Rob’s expertise in commercial financing has been instrumental in bringing private practice lending to Androscoggin Bank, emphasizing the importance of a personalized approach to funding your practice dreams.
As Senior Vice President and Director of Dental Banking at Androscoggin Bank, Rob has a profound understanding of the nuanced world of private practice financing. The discussion between Michael and Rob explores the unique aspects that set Androscoggin Bank’s lending practices apart from others, revealing the challenges that other banks often encounter in replicating their approach.
They explore the concept of “collateral risk” in lending to small private practice owners and navigate the potential pitfalls associated with Small Business Administration (SBA) loans. The conversation also covers the intricacies of private practice lending, addressing the delicate balance between fostering innovation and preserving community assets.
Michael and Rob’s conversation on private practice lending within a community-oriented framework include:
- There are three types of lending institutions. What sets Rob’s bank, Androscoggin Bank, apart is that it went through a rigorous process to become a Certified B Corporation.
- Private practice lending was a needed service in Rob’s community. Large national healthcare lenders do not provide support after the transaction closes, and practice owners really need that support.
- Private practice professionals who borrow money will not conform to typical commercial lending standards. What they require from a financing perspective is not related to tangible assets. Instead, it concerns goodwill to borrow the cash flow they are requesting.
Rob Westhoven’s private practice lending program is unique, community-oriented, and effective.
If you want to learn more about Private Practices in Maine, check out https://malloyfirmmaine.com/ppm012.