Dentists Rely on Pacific Continental Bank

Transcription

1 Dentists Rely on Pacific Continental Bank Just as dentists are committed to their patients oral health, Pacific Continental is committed to the financial health of dental practices. We understand your business, and we work hard to be the trusted advisor you need. The Right Bank for Dentists... 1 Start-Up Financing... 2 Phases of Dental Practice Start-Up... 3 Acquisition Financing... 4 Steps to Acquisition... 4 Real Estate... 5 Considerations for Purchasing Real Estate... 5 Business Banking for Dentists... 6 Loan Application... 7

2 When we ask dentists what they want from a business bank, the overwhelming response is a banker they can trust and one who understands the unique needs of a dental practice. Pacific Continental can offer just that and much more. The Right Bank for Dentists We Speak Your Language At Pacific Continental, we speak the language of dentists. We have a team of bankers that specialize in working with dentists to guide them through the life cycle of a dental practice, from start-up to retirement. Our bankers have many years of experience working with and lending to the dental industry, and we stay up to date on the latest trends and information impacting the dental community. Simply put, we make it our business to know your business. But our commitment doesn t stop there. We work in partnership with our dental clients, so that they can focus on their passion improving the oral health of their patients. Our bankers share their knowledge and expertise through articles published in dental-industry publications, seminars and workshops, as well as quarterly enewsletters designed specifically for dentists. We also place great emphasis on getting to know our clients and their practices. At Pacific Continental, we tailor our services to help your practice achieve and maintain success. We re with you every step of the way, offering flexibility, localized decision making and the ability to give each and every client personalized care. You can rest assured that your finances are well cared for with Pacific Continental. The bank maintains a solid financial footing, consistently surpassing the well-capitalized designation and continually achieving deposit and earnings growth. With Pacific Continental, you don t have to worry about the future of your bank. As one of the healthiest banks in the region, we re here to stay. Supporting Dentists and Dental Students Pacific Continental proudly supports the dental community and the institutions of higher learning that educate and mold the dentists of tomorrow. Pacific Continental established an endowment through Oregon Health and Sciences University s School of Dentistry and contributed to the school's new dental facility, Skourtes Tower. We also provide an annual scholarship. The bank created the Partner in Diversity scholarship at the University of Washington School of Dentistry with the goal of providing funding assistance to minority students who plan to address oral health care disparities. In total, Pacific Continental has given more than several hundred thousand dollars over the last few years in support of dental student education and continuing education for dentists. We also support a number of local dental societies throughout the nation. These collaborations demonstrate the importance we place on our relationships, as well as our deep commitment to the profession. 1

3 Additionally, Pacific Continental employees volunteer at a number of local dental-care activities. Our bankers have donated hundreds of hours to events such as Give Kids A Smile Day and free dental-care clinics in our communities. For more than 40 years, Pacific Continental has served the Pacific Northwest as a business bank and a trusted partner. We are dedicated to building strong relationships with our clients and maintaining our reputation as the right bank for dentists. Start-Up Financing Laying a Solid Foundation Pacific Continental s expertise in the dental industry allows us to create custom solutions for our clients, from recent graduates who want to establish their first office to seasoned dentists who are ready to launch their own practices. Our dental-practice bankers will collaborate with you to ensure you have the tools you need to successfully start or grow your practice. Pacific Continental will work with you to address your special circumstances, such as outstanding student loans or limited access to existing capital. We can provide 100%+ financing to cover costs associated with opening your practice. We offer highly competitive fixed- and variable-interest rate loans, as well as extended reduced payment periods and longer amortizations. We know it can be daunting to make such a significant business decision without sound financial advice. That s why we want to help. We re not just a bank; we are your partner as you start, grow and nurture your business. We ll be there not only to walk you through the financing process, but also to give you guidance on strengthening your creditworthiness, minimizing overhead and building your clientele. Top 5 Things to Consider When Starting a Dental Practice: 1. Surround yourself with professional advisors who know the dental industry. 2. Develop a thorough business plan. 3. Establish a realistic budget. 4. Create a focused and measurable marketing plan. 5. Confirm you have all proper insurance coverage in place. 2

4 Phases of Dental Practice Start-Up Following are the three phases dentists can expect to encounter when launching a new practice. Phase I Write a business plan for your practice. Prepare your personal and business budget. Obtain a demographics/feasibility study of the area(s) you are considering. Consider using a commercial realtor or equipment specialist to help you find a prospective practice location. Begin building your team of strategic advisors: attorney, accountant, banker, equipment specialist, insurance agents, etc. Consult a lender about financing the project and obtain a preliminary loan commitment. Meet with your contractor, designers, architect and equipment specialist to design the space. Meet with your accountant and attorney to go over your projected costs and plans. Phase II Negotiate the lease with the assistance of your attorney or lease negotiator. File your corporate documentation with the Secretary of State and apply for tax identification and employment ID numbers. Begin the underwriting of your life, disability and overhead insurance policies. Obtain insurance for liability, malpractice and workman s compensation. Meet with your equipment and supply specialists to place your first orders. Work with your marketing consultant to develop your logo, stationery, signs and website as well as promote your opening. Meet with your banker to begin setting up corporate accounts, including merchant bankcard to accept credit and debit cards from your patients. Order marketing materials to promote your opening (e.g., banner to hang at the location and business cards and letterhead to assist with networking). Phase III Refine and start implementing your marketing plan. Review your finances and refine your overhead projections. Post Coming Soon banner announcing the opening of your new practice. Network with local business owners. Begin interviewing and hiring staff. Work with your team to finalize details for opening. Start scheduling appointments. 3

5 Steps to Acquisition Although every acquisition and every situation is unique, the following steps provide a general overview of the process involved in acquiring a practice. Planning Prepare personal budget Define your ideal practice Select a practice broker/consultant Identify Practice to Acquire Acquisition Financing Purchasing an existing dental practice comes with its own unique set of challenges and benefits. Pacific Continental can work with you and your team of advisors to determine if the practice is priced appropriately, as well as evaluate the quality of the location, the value of current equipment and patient demographics. We can also assist in assessing cash flow to ensure the practice is on the right track and have tools to help streamline the acquisition process. At Pacific Continental, we will stand by you and help ensure the transition to your new practice is as smooth and streamlined as possible. Customized Options Complex transactions require flexible financing solutions. We can provide a range of financial options suited specifically to your transaction. And we can meet your timelines even when a purchase needs to close quickly. Partnership buy-ins can be complicated because of their structure, asset allocation and legal requirements. We have developed a streamlined process for buy-ins that is unique to the industry and facilitates a seamless transition. When buying a specialty practice, we typically include a generous amount of working capital, allowing you time to meet with the seller s referring doctors. Our extended reduced payment periods also allow you time to develop your own referral network. As with all of our dental-practice loans, we can offer 100%+ financing as well as fixed- and variable-interest rate options. Select Your Team of Strategic Advisors Accountant Attorney Banker Determine if the Practice is a Fit Perform preliminary due diligence Consult with your lender and insurance agent to obtain appropriate insurance policies Review lease terms Execute a Letter of Intent Secure Financing Obtain a commitment letter Conduct Final Due Diligence Transition Planning Communicate change of ownership to both staff and patients Meet with your accountant to form a business entity and apply for tax ID number, etc. Open business accounts: checking, savings/money market and merchant bankcard processing Execute Purchase & Sale Agreement Consult with Strategic Advisors and Staff to Ensure Smooth Transition 4

6 Real Estate As a dentist, you have worked hard to build and grow your practice. Taking the next step ownership of the building where your practice is located can prove to be a worthwhile investment for you and your business. Purchasing property can offer many tangible benefits, such as: Tax deductions. Control over remodeling and renovation. Additional income from leasing space to other tenants. Building equity. Owning your building also helps position your practice for success when you plan for retirement or if you intend to sell the business. Ownership can increase your practice value, and it provides a source of secondary income should you decide to retain the property after you sell the practice. Pacific Continental is here to assist you in navigating the complex commercial real estate industry. Our dental-practice expertise, combined with our deep knowledge of ever-changing local markets, makes us the right choice as your banking consultant and advisor. We can work with you to determine your practice s short- and long-term growth opportunities and identify the best real estate options for you. We offer customized plans and financing packages that fit your specific situation, whether you re purchasing land or an existing building. Considerations for Purchasing Real Estate There are some important business considerations to take into account when purchasing or developing real estate for your practice. Pacific Continental Bank provides a team of experienced specialists with the expertise to provide strategic guidance for the real estate process. Some important things to consider when you are looking to purchase real estate include: What are the terms of my existing lease? (current lease payment vs. new loan payment) Does my existing practice have the necessary cash flow to support a real estate purchase? How will relocating affect my patients and staff? Will a move help or impair my revenues? Land Purchase Considerations Construction Considerations Is the land zoning appropriate for a dental office? How do I design my office to maximize productivity? Are there any environmental concerns with the subject property? How do I find out if there are environmental concerns? How many operatories do I need, and will I have room to grow? Are there any city, county or state restrictions on developing the property? Is this the best use of the property? 5 Does my contractor have experience with dental construction projects? Do I have to pay out of pocket for the soft costs associated with my construction project?

7 Business Banking for Dentists Managing cash flow to maximize profits and reduce expenses should be a top priority for any business. Your dental practice is no exception. At Pacific Continental, we tailor our business banking services to provide extra levels of control and flexibility that may speed up your collections, reduce your operating costs, increase employee efficiencies, enhance your cash flow and improve your bottom line. Dental-Practice Banking We offer our dental clients a comprehensive array of accounts, including money market, sweep, zero balance and account analysis checking. We also offer enhanced service offerings and technologies that provide even greater ease of use, convenience and security for commercial accounts, multiple accounts or accounts requiring specialized service. Online Banking Plus Many practices have multiple users, and some require unique levels of access and security. We can provide secure access for your accountant and bookkeeper, as well as convenient online tools to monitor your day-to-day activities and extend your banking hours. Advanced Bill Pay allows you to delegate payment tasks and set permission controls for multiple users as well as provides an option for dual signatures and customized audit reports. Positive Pay and ACH Positive Pay help protect your clinic from fraudulent incoming electronic items. ACH direct deposit payroll for your employees. ACH direct payment plans for your patients. Wire initiations, federal tax payments, electronic balance alerts and fraud control. Mobile Banking Pacific Continental offers a mobile banking app for Apple and Android devices that is also tablet friendly. Our enhanced app offers many features that make banking even more easy and convenient. Display online activity and approve pending transactions. Complete funds transfers. Send bill payments to existing payees. Submit ACH single payments/receipts and domestic wires - only available for Online Banking Plus users. Deposit Plus Remote Capture Deposit Plus is an innovative online check processing system that allows you to electronically deposit checks throughout the day, so you can attend to your daily banking needs right from your office. It s a convenient and highly effective way to improve your business efficiencies, enhance your cash flow and help ease the often complex nature of your practice. Merchant Bankcard Our Merchant Bankcard program provided by Vantiv gives you all the tools, resources, convenience and service you ll need to accept all major credit cards and debit cards. Vantiv also provides a number of payment solutions based on the needs of your practice, addressing both the revenue cycle and health care transactions. Along with easy enrollment, you will also have access to the following amenities: Ongoing consultation and education. Equipment troubleshooting for both hardware and software. Toll-free number for after-hour emergencies. Website for transaction research. Lockbox Services Pacific Continental's lockbox service can help save your practice time and money. With direct access to a specified post office box, Pacific Continental collects, processes and posts mailed payments for you. PayNorthwest PayNorthwest is the preferred provider of payroll services for Pacific Continental Bank, offering web-based time, payroll and HR systems, as well as a Smooth Start Program to make switching easy and stress free. Pacific Continental clients receive special benefits such as free W-2s for the first year and discounted pricing. For more information, visit paynorthwest.com/therightbank. 6

8 Dental Practice Loan Application Date Personal Information Name Date of Birth Home Address Social Security # City State Zip Cell Fax Business Information Owner s Name Business Name Fax Tax ID # No. of Years in Operation Business Local (Street Address) Sole Proprietorship/dba Ownership Percentage Type of Ownership LLC / PLLC Business Partner / Proposed Guarantor PC / PS Loan Request I am applying for this loan Amount: $ Individually Jointly with the following named co-borrower: Use of Loan Proceeds Practice Acquisition Amount Requested $ Seller s Name Address Equipment Amount Requested $ Working Capital Amount Requested $ Refinance Existing Debt* Amount Requested $ Lender: *If more than one existing debt, please attach list of debts to be refinanced Other: Amount Requested $ Strategic Bookkeeper / Accountant Advisors Attorney Business Property Insurance Company / Agent Life Insurance Company / Agent Disability / Business Office Overhead Company / Agent Malpractice Insurance Company / Agent Practice Current office space (sq. ft) Number of Operatories Date of Business Fiscal Year End Information Are all of your business taxes current? (Including payroll taxes) Yes No Do you own your practice s building? Yes No How many employees do you have? continued >

9 Personal Financial Information Assets Amount Liabilities Amount Monthly Payment Amount Cash Cash $ Loans (other than Real Estate) Student Loan(s) $ $ Auto Loan(s) $ $ Stocks & Bonds Marketable Securities IRA / Pension $ $ Revolving Debt Credit Card(s) $ $ Personal Line(s) of Credit $ $ Residence $ $ Other $ Home Equity Line(s) of Credit $ $ Auto $ Unimproved Land $ $ Notes Receivable Personal $ Real Estate Loans Income Property Type _ $ $ Residence(s) $ Income Property Type _ $ $ Unimproved Land $ Loans on Insurance Policy $ $ Real Estate Income Property Type _ Income Property Type _ $ $ Other Liabilities Other: _ Other: _ $ $ $ $ Income Property Type _ $ Other: _ $ $ Other Assets Other Assets & Personal Property $ Total Liabilities $ $ Net Worth $ $ Total Assets $ Financial Information To help us expedite your loan request, it would be helpful to have some additional information. Please provide us with the following checked items. (Additional information may be required at a later time.) Applicant s last three years individual tax returns Last three years practice financial statements Last three years practice tax returns Accounts receivable aging Current interim balance sheet and profit / loss statement if more than three months past year end Production and collection report Two years profit and loss projections Other I hereby authorize Pacific Continental Bank to make any investigation of my personal and / or business credit and / or employment status either directly or through any agency employed by the bank for that purpose. I further authorize Pacific Continental Bank to provide information concerning applicant s credit relationship to credit reporting agencies or other creditors. The statements made herein are true and represent a total disclosure of all information requested on this date. Name of Applicant Signature Name of Co-signer Signature Title Date Title Date Revised 05/20/14

10 Connect with us. GREATER EUGENE GREATER PORTLAND GREATER SEATTLE TOLL-FREE WEBSITE therightbank.com SOCIAL May 2014