The vet practice capped at $3.0m

The situation

A veterinary practice owner kept missing out on properties because lenders could not correctly read his income or his business. By the time he came to us, they had capped his capacity at $3.0m. The practice was turning over about $1.5m a year and performing well. The paperwork was not telling that story.

What we did

We spent hours with the director and their accountant, going line by line through the profit and loss. The analysis consolidated three years of the trading entity's accounts into one adjusted view: one-off and personal expense items taken out of the earnings picture, each one evidenced with receipts; year-to-date trading pulled from the EFTPOS terminals, cross-checked to the management accounts and annualised; living expenses verified rather than guessed; and a restructure of the existing debt to support the higher facility.

The outcome

Adjusted earnings settled around $400,000 a year, well above the reported profit line, and every dollar of the difference had a document behind it. Assessed capacity went from $3.0m to $6.5m. More than double, built on the same business, presented properly.

Shared with the client's consent. Figures relate to assessed borrowing capacity; outcomes depend on individual circumstances and lender criteria.