The Covid-19 pandemic has seen widespread change to our economy and how businesses are able to operate. With restrictions put in place for dental and other allied health practices, many have opted to temporarily close their doors as a precautionary measure.
Taking these events into account has seen lenders review how they assess finance applications. Rather than purely looking at historical data to assess an application, lenders are now seeking a deeper understanding of how a practice has been or could be affected by Covid-19. Applications now require additional information around the changes Covid-19 is having or could have on a medical practice over the in the next 12 months and what strategies are in place to deal with any adverse changes that may occur.
Certain lenders have withdrawn from the medico lending space by no longer offering lenders mortgage insurance waivers and applying their standard assessment metrics where they previously offered more flexible assessments and rate reductions based on the characteristics of a medical professionals application.
It its likely these changes will remain in place for the foreseeable future as the longer term impact of Covid-19 on business in the medical and non-medical space is still unknown.
Medico Finance Australia continues to work through these changes by liaising with practice owners, accountants, business advisers as well as negotiate with lenders to ensure that any personal or business finance applications are prepared with the necessary mitigants in place to have the highest chance of success.