Issue link: https://www.e-digitaleditions.com/i/1469972
21 Spring/Summer 2022 | Equine Solutions But what if the borrower's expenses were slightly higher? Today, almost all veterinary students graduate from veterinary school with a sizeable amount of debt and most are anxious to pay it off. The borrower in the example above chose to pay his/her loans off over 30 years and made annual payments of $48,000. At the time the borrower started repayment, there was a 15-year option at a slightly lower interest rate that required annual payments totaling $72,000. While this alternate option would have saved the borrower some interest, the required larger payment would have reduced the borrower's excess cash flow by $24,000. This minor change would have resulted in the borrower generating only $1.08 for every dollar of expenses and the loan request would be declined. While the change in this example came from an increase in the veterinarian's student loan payment, higher mortgage payments, car payments, credit card payments, or living expenses could also hinder a veterinarian's ability to obtain clinic financing. As you can see from this example, a veterinarian's personal decisions weigh heavily when a bank is considering clinic financing. Veterinarian's should consult with their advisors prior to incurring personal obligations so that they can put themselves in the best possible position to obtain clinic financing. Bank of America can assist you through vast industry knowledge and customized financial solutions. To learn more and see the current promotional rates, visit bankofamerica.com/practicesolutions or call 614.753.1603. About the author Jimmy is the Veterinary Business Development Officer for Washington DC, Kentucky, Maryland, Ohio, Tennessee, West Virginia, and Virginia. He has been with the Bank of America for over eight years and is responsible for managing relationships with industry-specific professionals. Bank of America, N.A. provides informational articles for your discussion or review purposes only, and is not responsible for, and does not guarantee or endorse the third-party services and/or products referenced herein. All logos and company names mentioned herein are the property of their respective owners. Please consult your financial, legal and accounting advisors, as neither Bank of America, nor its affiliates or employees provide legal, accounting or tax advice. Bank of America Practice Solutions is a division of Bank of America, N.A. Bank of America and the Bank of America logo are registered trademarks of Bank of America Corporation. ©2021 Bank of America Corporation.