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So far Live Oak Bank has created 193 blog entries.

Client Engagement: Connect With Clients

By |May 1st, 2014|

The first step to enhancing client service is to become a client-centered hospital and make it a goal of the business to consistently deliver exceptional service while always striving to exceed the needs of clients.  Next you must hire employees with positive attitudes who are motivated to provide outstanding service.  Then focus on the following 3 key areas to ensure success in achieving your goal.

Veterinary Client Engagement: Connect With Clients 

One of the best ways to provide tailored, sophisticated service is to connect emotionally with clients and recognize their unique needs.  Don’t lose sight of the client’s perspective when communicating with clients.  Remember to focus on what clients are feeling and what they need from the healthcare team as well as what their pet needs.

Give clients compliments.  Everyone likes to receive compliments so look for opportunities to say something nice to clients.  Always praise clients about how well they take care of their pet because this will reinforce your position on […]

A Primer on Pharmacy Financing: Real Estate Financing

By |April 29th, 2014|

Banks are actively seeking good projects to fund and that includes independent pharmacies.

One opportunity for a pharmacy owner to best position the business and increase their future wealth is to own the building where the pharmacy is located. In recent years, commercial real estate values have reset and many commercial properties have become available and more affordable. Consequently, a number of pharmacy owners have taken advantage of the opportunity to become their own landlord. Purchasing an existing building, building a new facility, or remodeling an existing store are generally easily finance-able and banks often provide 100 percent financing for such a project. It can be helpful to include real estate in a business loan, whether it is an acquisition, expansion, refinance, or a start-up. Including real estate in a loan will allow the bank to lengthen the term. Real estate loans are generally termed over 20-25 years, making payments very affordable.

Read the full article here: A Primer on Pharmacy Financing

www.americaspharmacist.net

Why Now is the Right Time to Buy

By |April 29th, 2014|

There are several key reasons why now is an excellent time to invest in commercial real estate.

Property prices have bottomed.  As with the residential market, commercial property values seem to have bottomed out.  In most markets today, a typical mortgage payment is equal to or less than a rent or lease payment.  At today’s CRE prices, you can retain more of your cash flow or acquire much more real estate for your investment than you might have just five years ago – all while investing in your future growth.

Abundant inventory.  In addition, commercial properties are currently available in abundance in most markets, providing an excellent opportunity to secure a prime location at a very reasonable price.

Rates at historic lows.  While business property rates will never be quite as low as those for residential properties, they are nevertheless mimicking the housing market with rates that are now at historic lows for commercial real estate. Your CRE loan today will cost you […]

Building a Foundation for Growth

By |April 23rd, 2014|

Owning your dental business property, along with your practice, has the unique advantage of laying a broader foundation for future growth. The three most significant advantages to owning your business real estate are:

Control.  When you own the business property as well as the practice, you have complete control to develop, operate and modify the building to your needs as the practice evolves, and as zoning regulations allow.  You are no longer at the mercy of your landlord’s guidelines for space modifications, and can adapt your building infrastructure to accommodate future developments in dental technology.  This gives you maximum flexibility to build the practice you want with the building and equipment enhancements you need.

Stability.  When you own your own property, whether a home or a business, you enjoy greater long-term stability in the costs associated with the property. You can more easily project the annual costs for your practice investment according to your mortgage contract, insurance and estimated property tax, without […]

A Primer on Pharmacy Financing: Expansion Financing

By |April 19th, 2014|

Banks are actively seeking good projects to fund and that includes independent pharmacies.

Increasingly, entrepreneurial pharmacists are becoming multiple pharmacy owners. The 2013 NCPA Digest, sponsored by Cardinal Health, shows that 25 percent of community pharmacy owners have ownership in two or more pharmacies. The average number of pharmacies in which each owner has ownership is 1.79, and that number is rising. Financing a second pharmacy (or third, or fourth, etc.), whether it is an acquisition or a startup, is easier than financing the first.

First, an owner usually won’t need to draw a salary from a second location, so all of the excess cash flow can be devoted to debt service. Second, a banker may be able to consider cash flow from all of the owner’s businesses, or the global cash flow, when evaluating financing an additional pharmacy. Strong cash flows from the owner’s existing pharmacies can support the acquisition or startup. For owners with a fair amount of equity in their existing pharmacy, a bank can often offer 100 percent financing for the expansion.

Read the full article here: […]

Dental Customer Construction Spotlight: Dr. Allison

By |April 18th, 2014|

Dental Customer Spotlight

Dr. Allison shares her experience with Live Oak Bank and how she prepared for building and marketing her dream pediatric dental practice.

A Primer on Pharmacy Financing: Acquisition Loans

By |April 16th, 2014|

Banks are actively seeking good projects to fund and that includes independent pharmacies.

With more than 1,000 independent pharmacies trading annually, and many banks now recognizing the value of an independent pharmacy as a customer, pharmacy acquisition loans through banks have become more common. A typical pharmacy acquisition exceeds $1 million, but is within the reach of many pharmacists as long as they meet the criteria of the 5Cs. The first step when evaluating an acquisition project is to develop a loan budget with a banker.

It is important that the lender fully understand the project to ensure that the budget is sufficient to acquire the business, transition the business, and run the business. Underfunding an acquisition project is a major reason for failure in pharmacy acquisitions. After developing a sufficient budget, a lender will utilize the previous owner’s tax returns to determine if there is sufficient cash flow to provide the new owner with a salary, have monies left to service the debt as well as additional funds provide a return to the business. When reviewing a pharmacy’s tax returns […]

When To Choose a Lease

By |April 15th, 2014|

For new dental practitioners who are uncertain of future space needs and want to ensure maximum cash flow as they grow their business, leasing may be a wise option.  In general, it’s far less costly up front to lease commercial space compared to a real estate investment, making leasing a better choice for those who lack equity as only one to two months lease value is typically required as a security deposit on a leased space.   A lease arrangement can also free up cash that can help fund the growth of your practice through equipment purchases or marketing.  In addition, practitioners with lease arrangements will not be tied to the responsibilities of property ownership, such as onsite maintenance and tenant rentals, and can focus more fully on their practice and patients.

However, there are also significant disadvantages to leasing that need to be carefully considered. Most importantly, with a lease arrangement you are not investing in your own future.  You do […]

Commercial Real Estate: Overcoming Your Fear of Ownership

By |April 8th, 2014|

The severe drop in property values that accompanied the Great Recession has caused many small business owners to be skeptical of commercial real estate investment. They have lost faith in the adage that property values tend to increase over the long haul, shying away from real estate purchases in favor of lease arrangements that insulate them from the unpredictability of the market.  Yet there has never been a better time to purchase the business property on which your dental practice resides.  The significant opportunities available to small business owners through investment in commercial real estate warrants a second look at the pros and cons of leasing versus purchasing your office space.

Common Terms Used In Lending

By |April 8th, 2014|

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