Frequently Asked Questions

What information do I need if I want to apply for a loan?

We need all partners OR 4 Partners (in the case of a larger Practice):

  • Dates of birth
  • Current home addresses (if you’ve lived there for less than 3 years we’ll also need previous addresses)
  • What practicing certificates are held
  • Practice name, address and how long established
  • Latest accounts
  • Latest Management accounts (in some instances we may require last 3 months Practice bank statements)

How much can I borrow and over what repayment period?

You could borrow any amount from £10,000 – there’s no upper limit. We provide funding with repayment terms from 3 months to 5 years. (7 years for lease agreements for dental equipment)

Will my payments be subject to interest rate changes?

No, all our loans are fixed on day 1 for the duration of the agreement.

What can I use the loan for?

Almost anything as long as it’s for business purposes, if you are unsure about any exclusions just give us a call on 0845 124 9624 (calls cost 5p per minute plus your phone company’s access charge) and we’ll talk you through the application process.

When will my first payment be?

Usually 1 month after the loan is activated and paid to you. A copy of the finance agreement will be sent to you that will detail the date your first payment will be taken.

Can I top-up my Loan?

You can top up your loan at any time as long as you meet our lending criteria. Give us a call on 0845 124 9624 (calls cost 5p per minute plus your phone company’s access charge) for more information.

Do you charge a set-up fee?

Synergy doesn’t charge you a set-up fee for your loan. However some lenders do charge a nominal fee.

Can I settle the loan early?

Yes, the rate is fixed for the duration of the loan and there are no penalties for early repayment.

When will I get a decision?

Once you have provided us with all the application details and any necessary supporting information, our underwriters will conduct a credit check and we will, normally within 24 hours, contact you with a decision.

I have been declined, can you tell me why?

When we consider your application, our underwriters rely on details provided by credit reference agencies and the information you have provided us with. In some cases our underwriters may decline due to existing credit agreements with them and deemed to be up to limits. In the case of a decline Synergy will endeavour to provide a reason and advise you accordingly. You can request a copy of your credit file, send your name, your addresses for the last six years and a cheque for £2 to: Experian Ltd, PO box 8000, Nottingham NG80 7WF. You could also write to Equifax LTD, Erskine House, 1 North Avenue, Clydebank, Glasgow G81 2DR.

I have signed and returned my loan documents, when will I receive the money in my bank account?

The money will be in your account within 3-5 working days on receipt of correct and signed documents unless you have specified a CHAPS payment (charges may apply) when we aim to have the money in your account in 24 hours.

How can I find out how much is outstanding on my loan?

Just contact us 0845 124 9624 (calls cost 5p per minute plus your phone company’s access charge).

What happens if I want to settle my loan early?

To settle your loan early just call us on 0845 124 9624 (calls cost 5p per minute plus your phone company’s access charge) and we can provide you with a settlement figure.

Can I make extra payments to my loan?

Unfortunately not, under the terms and conditions of the agreement extra payments over and above the fixed monthly payments are not permitted.

Leasing v Purchase

Tax Benefits
With leasing (Operating, Contract Hire and Finance) contract repayments are 100% fully tax allowable this differs from outright purchase options where only the capital allowances can be claimed against tax. If your potential purchase is made via a Lease/Contract Purchase or with a Practice Loan then you can also reclaim the interest charges against tax.

Cash-flow Benefits
By leasing you are not only preserving the working capital of a business but you are being more tax efficient. It will enable your business to use the working capital to invest for growth or in assets that have the potential to appreciate. Lease/Contract Purchase options also preserve working capital but are not as tax efficient compared to Operating and Finance Leasing options. Thus, outright purchase options will use up your available funds and are not as tax efficient.

Credit and debt status
Operating Lease and Contract Hire options will preserve the credit status of a business as lease payments are normally classified as an expense and not debt -operating leases and Contract Hire arrangements are regarded as “off balance sheet”. This therefore preserves the flexibility to utilise any further debt facility (from the bank/specialist lender) for other more growth focused requirements.

Balance sheet
If an asset is purchased (outright with a practice loan or with Lease purchase) or acquired using a Finance Lease then it will show on the balance sheet since it is ultimately owned by you. However Operating Leases and Contract Hire options keep assets acquired in this way off the balance sheet thereby further protecting your credit status.

VAT
With all other purchase options VAT is payable up front whereas with Operating and Finance Leases VAT is payable over the term of the lease thereby further protecting cash-flow.

Exposure to obsolete technology
Leasing options which enable the lessee to hand back the asset at the end of the agreed term help the lessee to benefit straight away from improvements in new technology associated with the particular asset. However if the asset has been purchased outright there is the challenge of finding a buyer for the older asset before a new purchase can be made.

Why should I lease assets when I could buy them with cash?

It allows your business capital to be used for projects which will hopefully help your business grow and make increased profits. Leasing lets you pay for your assets as they are being used by your business over time. There are also tax benefits which enable 100% of lease repayments to be written off against profits.

What if I need to upgrade the equipment?

With a Lease rental agreement, you can add onto it or upgrade it anytime you need to in the future. This allows you to continue to meet your future needs and remain in control of your budgets.

What happens at the end of the lease contract

In most cases you will be offered the option to purchase the equipment at the end for a nominal fee upon expiry of the lease.

Are there any age limitations?

To be eligible for funding all applicants need to be 18 years or over and under 70. In the case of a partnership where one of the partners is outside the criteria then they will be excluded for underwriting purposes and the remaining partner/s will be considered.

Call Synergy Professions today

Calls cost 5p per minute plus your phone company’s access charge