Taking the pain out of finance for medical professionals

During your working lifetime, you may need to fund a range of assets such as motor vehicles, office and medical equipment, and residential or commercial property. This will often lead to borrowing from several different lenders.

Seeking advice from a finance broker allows you to adopt a more holistic approach to your finances. This is because working with an independent advisor will help you to take full advantage of competition in the lending market so that you get the best deal, tailored to suit your needs.

So, what does a finance broker do?

Finance brokers act as an intermediary between an individual who wants to borrow money, and the banks and other lenders. As an independent advisor, they provide access to a broad range of lenders to ensure you have the opportunity to select the solution that best meets your needs.

A finance broker who specialises in healthcare can tailor solutions to meet specific requirements as your career and personal circumstances develop and change. They can advise on debt strategies and cash flow management, establish loan facilities for acquiring properties or financing a practice, and conduct reviews of existing loan facilities to ensure you are optimising your position.

What does it cost to use a finance broker?

As a borrower it costs nothing to use a broker, as they are compensated in the form of a fee or commission by the lender for arranging the loan. The banks and lenders use brokers to distribute their products without having to incur the expense of branches and full-time staff.

Did you know that most banks consider medical professionals to have a low risk profile? This is because historically, medical professionals have the lowest rate of default. The nature of their career offers stable employment, which makes them an attractive ‘risk’ to bankers.

When choosing your adviser, there are five things you should look for:

  1. Accreditation

Finance brokers must be registered with the Australian Securities and Investment Commission (ASIC). They must also hold an Australian Credit Licence (ACL) or be a credit representative of an organisation that holds an ACL. Also look for a broker who is a member of a credible professional industry association such as the Mortgage & Finance Association of Australia (MFAA), as these typically require higher standards in education, ethics and experience.

  1. Experience

An experienced broker will have an intricate understanding of each lender’s loan products, policies and application processes, and will know exactly how to position your funding proposal in order to get the best outcome.

  1. Specialisation

Medical professionals have unique business needs and finance requirements. Ensure the broker you deal with has a track record in dealing with your profession.

  1. Panel of lenders

You can tell a lot about a broker by their lending panel. Check if they have a range of reputable lenders and how many of those lenders they use, and why.

  1. Fees and charges

Anyone engaging in credit activities must give you a credit guide with information such as their licence number, commission structure and details of your right to complain. This document ensures transparency in your dealings and is important to understand from the outset.

Experience the difference

Find out how a finance broker can help you negotiate a better deal. To experience the difference please contact us for an introduction to Jack Meagher.

DISCLAIMER: MediPay Private Pty Ltd ABN 85 609 043 629 | Authorised Credit Representative Number 484635 operating under Credit Licence Number ACL 468113/ Jack Meagher Authorised Representative No 484635. The information provided in this article is of a general nature and does not take into consideration your objectives, financial situation or needs.