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How Relationship-Driven Lending Fuels Multi-Practice Expansion
How Relationship-Driven Lending Fuels Multi-Practice Expansion
For solo practitioners and multi-practice owners, expanding their professional services firms is an exciting and complex endeavor. Access to capital is essential for growth, whether through acquisition or organic expansion. Yet many lenders apply a one-size-fits-all approach to financing. Wintrust Professional Practice Group (WPPG) takes a different approach, prioritizing relationships over rigid lending checklists to offer tailored financial solutions. WPPG understands that positioning your business for lending success is crucial to sustainable growth.
Thoughtful growth is the foundation of any successful expansion strategy. Before seeking financing, practice owners must clearly define their goals. Jan Eriksen, vice president and division head at WPPG, emphasizes the importance of planning ahead. “Understanding where you want to end up is critical to long-term success. Are you looking to expand to five, 10, or 20 locations? Will you scale through acquisition, or do you plan to open new practices? Defining these goals early allows both the business and the lender to create a roadmap for sustainable growth. A well-articulated plan also signals to lenders that the business has a clear and achievable trajectory.”
Choosing the right lender can make or break a group’s ability to scale efficiently. Many national banks treat practice financing as a transactional process, applying uniform criteria without considering the nuances of each business. Angela Baker, vice president at WPPG, explains why a relationship-based approach makes a difference. “We don’t rely on a strict checklist to determine financing eligibility. Instead, we take the time to understand each client’s specific situation, challenges, and long-term objectives. That level of customization allows us to structure financing solutions that truly support their growth. Having a lender with deep expertise in multi-practice financing — one that understands the financial complexities of health care practices, such as dental, veterinarian, vision, and other medical specialties — can be a significant competitive advantage.”
Accurate financial reporting is another key factor in securing financing. Lenders expect timely periodic interim financial statements, for all locations. These documents allow banks to assess cash flow, profitability, and overall financial stability. A debt capacity analysis can be performed based on current financials and then used as a basis for reviewing future acquisitions. Baker highlights the importance of being prepared. “Having up-to-date financials on hand not only streamlines the lending process but also positions practice owners to act quickly on acquisition opportunities. Being due diligence-ready is a hallmark of a well-run enterprise.”
In support of this, Wintrust’s Treasury Management services can be especially valuable for multi-practice firms by helping them to better leverage their cash flow and streamline operations. These tools improve efficiency for accounting teams and provide greater visibility into liquidity — creating a full-circle solution that benefits the customer, lender, and accountant. Ultimately, lenders want to see that a business can generate reliable cash flow sufficient to service both current and projected debt.
Consistent communication with a banking partner is essential for keeping financing options open as the practice grows. Regular financial check-ins, strategy discussions, and proactive updates help ensure that both the lender and the practice owner remain aligned. Eriksen reinforces the value of ongoing engagement, stating, “A strong banking relationship isn’t just about securing financing today; it’s about positioning your business for long-term success. The more a lender understands your business, the more they can offer flexible and timely financial solutions.”
Scaling a multi-practice enterprise requires more than just ambition; it demands financial discipline, strategic partnerships, and a banking partner who truly understands the industry. WPPG’s “relationship-first” approach ensures that practice owners receive financing solutions tailored to their unique growth paths.
To learn more about how WPPG can support your expansion, visit Wintrust.com/ppg.
Banking products provided by Wintrust Financial Corp. banks.
