Animal Health Solution - a Covetrus magazine for veterinary professionals
Issue link: https://www.e-digitaleditions.com/i/1345282
21 Q1 2021 | Animal Health Solutions I have been working with veterinarians for over 29 years to help them secure financing, and have never experienced anything like what we have been through this past year. Many veterinarians received Paycheck Protection Program (PPP) loans from the government and chosen to pay cash for equipment. A few doctors made the decision to postpone big purchases last year, and those who wanted to finance found that the credit criteria had tightened. They also found that rates are at an all-time low, but maybe not as appealing as they might have expected for small item financing. I believe that the reason for this was that banks were concerned about how many losses they might incur as a result of this pandemic, and their rates include a hedge against possible future defaults. Financing during a pandemic About the author Shon Bjerregaard is the National Finance Manager for Covetrus North America. Shon has worked for the company for 13 years and has 29 years of experience in finance. Through it all, I've been proud to see the resilience of our customers and our industry. Most veterinarians have managed to remain open, changing the way they do business and how they interact with their customers. Lenders have now reevaluated the animal health business and found that the losses have not increased. In fact, the feedback I've received is that they have had to restructure debt for others in the human healthcare industry and other professionals due to COVID-19. However, it is quite the opposite for veterinarians as not many needed the assistance, and their business stayed steady. Overall equipment financing did increase in 2020. However, in a few areas financing has dramatically increased through project financing, as well as soft-cost/open account financing. Customers in need of a remodel have recognized it's easier to complete construction projects with customers not coming inside the building. If you are interested in additional finance options through Covetrus, speak with your Covetrus representative or contact me directly at 801-688-6467. Disclaimer: The information provided in this article does not, and is not intended to, constitute legal or financial advice; instead, this information is for general informational purposes only.