Guest Blog Series
This week we have guest blogger Aaron Swyny who is a partner of Cohesive Finance. Aaron has over 20 years banking experience with a specialised focus in the pharmacy industry.
PHARMACY FINANCE STRATEGY
So you’re thinking of buying into a pharmacy…or a new home for your family…or an investment to provide for your future. What is your strategy? Where do you start?
In the past, you would arrange a meeting with your Bank, put on your best suit, complete an application and hand over copies of your financial documents. Finance was arranged by a banker that knew you and your situation and you had few concerns – or choices.
Finance has become much more complex, with varying asset ownership structures to be contemplated, a plethora of bank products and features to consider, and – thanks to much stricter legislation – a more complex application process to fulfil.
Ownership structures should be driven by accountants and lawyers with an eye to protecting your assets and providing you with the most tax effective structure. However, what consideration has been given to how a bank will view this structure should you require finance to achieve your goals?
There are many banks in the marketplace with a variety of policy requirements, offering numerous products with individual features and a range of prices. Which bank should you approach? Lodging numerous credit applications can adversely affect your credit score, and make it more difficult to reach your goals. How do you know which product suits your strategy and goals? Is the cheapest rate the best solution for you – and is it really going to be the cheapest option in the long run?
The Royal Commission into Banking has seen a tightening of credit policy across the board and increased the complexity of the application process. Numerous policy changes and amendments to assessment criteria has impacted almost every loan application. An in-depth understanding of how various lenders view your income, living expenses and asset position is critical in preparing to formally apply for finance.
We are living in a time when thought must be given to preparing for your future finance needs, not waiting to put forward a rushed application when a need arises.
Pharmacy Finance is no different. Whether you are looking to purchase a pharmacy, refinance an existing debt commitment, improve your asset base or acquire fitout finance, preparation and planning are key. And if your needs are more personal, maybe a new home, an investment property or even a motor vehicle, the same questions need to be addressed. Advance preparation and understanding of the options available to you – and the requirements to achieve your goals – is more important than loyalty to one lender or limiting your banking to just one institution.
The most effective thing you can do as part of your finance strategy is to work together with a team of trusted advisers – Legal, Accounting, Financial Planning and Finance Broking professionals should all work together to understand your situation, execute your strategies, and cohesively construct a comprehensive plan for your future needs.
So if you are thinking of purchasing into pharmacy or a new home in the next twelve months, then now is the time to commence your finance strategy. Call us now on 0477 899 966 to ensure that you are well prepared and not delayed when the day arrives for your dream to become reality.
Aaron Swyny is a Partner in Cohesive Finance, and has over 20 years banking experience, with specialised focus on the health and, in particular, the pharmacy industry.
ACL- 498099