Easily Estimate Your Monthly Practice or Real Estate Payment
Understanding Loan Terminology
Here’s a quick rundown of key financial terms and their definitions.
The amount the seller is asking for his/her practice.
A portion of the sale price that is not financed. Typically, the larger the down payment amount you make, the lower the interest rate will be on your loan.
Also known as operating expenses, this is the amount of money needed for initial day-to-day operational expenses until the practice generates enough profit. Working Capital is calculated by estimating the value of your current assets and subtracting the cost of your current liabilities.
A number between 300-850 that represents your level of creditworthiness based on credit history, levels of debt, repayment history and more. The higher the credit score, the better with 700 or higher being ideal.
This is the amount of time you have to pay off a loan.
The annual interest rate that is charged on a loan or earned from an investment.