The Specialist Forum Volume 13 No 11 November 2013 | Page 56

ADVERTORIAL

Medical specialists give positive
prognosis on growth prospects

M

edical specialists are positive about growth prospects in SA –
consistently voting ‘Yes’ to expansion with a portion of their
revenue. The assessment comes from Bidvest Bank, an institution that focuses more and more intensely on medical professionals in
response to growing volumes of asset-based finance business from this
sector.
Byron Corcoran, the bank’s head of asset-based lending, says that in
a year when economic growth faltered, the medical profession continued
to invest in expansion.
“Our asset-based lending term varies from 24 to 60 months,” says
Corcoran. “Most business from our professional clients is at the longer
end of this spectrum, which means specialist practices are usually happy
to commit to a five-year forward view.
“In effect, South African doctors in private practice are saying growth
prospects remain good in a key area of the economy. This is particularly
true of specialists with an established practice – a key focus area for us.”
Bidvest Bank tracks sentiment in three specific fields:
Equipment finance: It provides funding for many technology items,
including computed tomography, magnetic resonance imaging and positron emission tomography scanners, ultrasound, nuclear medicine and
x-ray equipment, cardio-vascular/cath labs, general medical equipment
and accessories. Most activity is driven by standard asset-based finance
contracts. However, the bank has strong relationships with major equipment suppliers; which means some practices can take a rental option.

professionals communicate closely with their peers.
“We’re a niche bank rather than one of the massive institutions that have
traditionally dominated this form of lending. We take pride in the personal
touch and ensure clients go through only one point of contact and don’t
have to deal with layer upon layer of management.”
He says doctors have a very precise appreciation of the value of time
and take note when efforts are made to accelerate approvals and cut red
tape.
“Timely action by well equipped specialists can save a patient,” adds
Corcoran.
“Prompt action by specialists in our business can also save a lot of
transactions from falling through. That keeps us motivated and keeps us
close to clients – especially in the medical profession.”

Commercial property finance: Established practices approach the
bank for asset-based funding to renovate or extend their premises or relocate to larger, better positioned properties.
Vehicle finance: Many practices treat Bidvest Bank as a ‘one-stopshop’ for asset-backed lending and also obtain their vehicles through
the bank. Its database considers variables such as cash flow and tax
implications before suggesting appropriate solutions. The range includes
full maintenance leasing, operating rentals, instalment sale, financial lease
and other options. Growth is evident in both the number of contracts and
deal value.
Corcoran points out: “Technology costs are mounting worldwide and
the Rand has weakened significantly year on year; so it’s no surprise that
capital sums per contract are tending higher.
“We also see new business. We put this down to referrals as medical
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November 2013 | The Specialist Forum