Looking at a veterinary loan?


Consider a variable rate

It may seem counterintuitive right now when interest rates are so low, but a loan with a variable interest rate may be the best way to go if you're looking for financing for your veterinary practice.

Vince Dailey, senior loan officer with veterinary lending firm Live Oak Bank, says that in his personal experience, veterinarians are too willing to pay a few extra percentage points for the security of a fixed-rate loan. "A better alternative," Dailey says, "is to accept a lower variable rate but pay it as if it's a fixed rate. That way that extra 2 or 3 percent is going to knock down your principal instead of your interest. This is assuming there are no prepayment penalties, of course."

Another tip from Dailey: Now is a great time to renegotiate your lease. With buildings and storefronts sitting empty because of the economic challenges small businesses have been facing, landlords don't want to lose dependable tenants. "Threaten to move down the street if your landlord isn't open to more favorable terms," Dailey says. Once you hang the "Moving soon" sign in the window, you might find your landlord much more willing to sit down and negotiate with you.

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