DWI CPD Test: Is 100% Finance For Dental Practices Possible?

1. What does “100% finance” mean in buying a dental practice?

Paying in full with savings

Borrowing the full purchase amount from a lender

Getting a discount on the practice

Paying only for equipment

2. Why do banks test affordability at higher interest rates?

To ensure repayments can be met even if rates rise

To make the process longer

To discourage first-time buyers

To increase their fees

3. What is “run-off cover” in finance terms?

Extra loan money for holidays

Government tax credit

A deposit refund from the seller

Insurance for claims after work stops

4. Which type of buyer can often find 100% finance easier to obtain?

First-time buyers

Existing practice owners

Students

Retired dentists

5. Why is serviceability important for the bank?

It shows the practice can cover loan repayments

It reduces electricity bills

It helps hire more staff

It avoids legal paperwork