Simon Palmer
Buying Into Or Buying A Vet Practice In 2026, What Lenders Want To See
5 days ago 
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More vets are looking at ownership again, whether that is buying a partner's share, buying an independent practice outright, or buying back from a corporate group. The finance is there, but lenders look at a vet practice purchase differently from a standard business loan, and knowing what they want makes the process quicker and cheaper.
How a practice purchase is usually funded
Most deals are a mix. Goodwill is normally funded with a term loan over five to ten years. Freehold premises can sit on a commercial mortgage over a longer term, which lowers the monthly cost. Diagnostic and surgical equipment can go on asset finance, so it does not use up the main loan. Splitting the deal this way often gets a better overall rate than putting everything on one loan.
What lenders look at first
Lenders want to see that the practice earns enough to repay the loan with room to spare. They will ask for the last two or three years of accounts, recent management figures, and a simple forecast showing the practice after the purchase. They also look closely at the buyer. Clinical experience, time in the practice and a clear plan for keeping clients and staff all count.
Deposit and security
Many lenders will fund a large share of the purchase price, but most expect some personal contribution. A personal guarantee is common on goodwill lending. Owning a home is not always required, though it can widen the choice of lenders.
What it typically costs
Practice purchase, goodwill and partner buy in finance typically runs at 10.25% to 25% a year, depending on the strength of the practice, the buyer and the structure. A full breakdown is in our guide, How much does it cost to buy a professional practice? UK finance costs 2026.
Getting the timing right
Start the finance conversation before agreeing heads of terms. Knowing what you can borrow, and on what terms, puts you in a stronger position when negotiating price and avoids delays once solicitors are instructed.
Simon Palmer is a director of Smart Funding Solutions, a whole of market commercial finance broker that arranges practice purchase and buy in funding for vets and other professional practices through its specialist brand Professional Practice Loans.
