Unlocking Their Potential
Why a new banking business unit was created to help medical providers – including veterinarians – with financing needs.
Huntington recently announced the launch of a specialty business banking unit tailored to medical practices – including veterinarians.
The regional bank holding company, with its headquarters in Columbus, Ohio announced its new practice finance team will focus on businesses with less than $20 million in yearly revenue, particularly dentists, physicians and veterinarians who seek to expand their practices and unlock long-term value.
“The veterinarian industry is an incredibly dynamic space,” said business banking expert and industry veteran David Burch, who joined Huntington from Bank of America, where he led one of the largest practice finance teams in the industry and served as the division executive for all business activity across the Northeast and mid-Atlantic states. Burch will head the new Huntington unit. “Veterinarians are doctors, and they tend to do the same procedures that would be completed on a person – oncology, dentistry, heart surgery and repairing fractured bones. The only difference is those procedures are with animals, who are really family members, too.”
The animal health industry is an attractive one because it is a very predictable industry with incredibly intelligent practitioners, Burch said. “The lending needs are strong, the losses are very low, and they play a really important part in our communities. By Huntington having this specialization, it’s just another way for us to help businesses thrive and strengthen the communities that we serve.”
Specialized loan products
The new program offers specialized loan products for multiple purposes, including equipment finance, relocation, and remodeling, practice acquisition, and startups.
Burch said Huntington has an equipment financing program that can be utilized by any veterinarian for equipment purchases. They’ll also offer financing beyond just the equipment transactions.
“Because we see the value in the practice and we understand how to underwrite in this market, we are able to extend more money and keep the payments lower,” he said. “Most non-specialized lenders are really searching for equipment or technology loans at very short terms, often from 36 to 72 months. At Huntington, we can finance a doctor’s complete project, which typically includes material costs, construction, equipment, and technology, and we can create a longer-term solution to help with cash flow as the practice is growing.”
Working with distribution
Connecting and conversing with multiple distributors has been a priority at Huntington, Burch said, “and our ability as a bank to deliver with a high level of service to distributors’ clients is incredibly important. Distributors make up a good part of how we go to market here at Huntington, and our financing products are really a big piece of how these distributing businesses thrive. Having a full product suite that meets every need that their clients have is very important, and we can not only help with equipment transactions but also with real estate purchases, construction, relocations, start-ups, and acquisitions as well.”
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