Advice for Business Banking

You’re focused on your medical career. Let us focus on your financial well-being.

As a physician with a busy practice, your time is valuable, and balancing your business, career, family and finances can be challenging. You deserve specialized advice and answers to your questions to manage your finances today and plan for your future. We break down some of the top banking questions physicians ask.

Frequently Asked Questions

There may be advantages to having a banker who is familiar with medical professional corporations. Consider your needs for corporate bank accounts and other corporate banking services, including credit. Business and personal borrowing should generally be kept separate for tax reasons.

 

Learn more about optimizing your finances as an incorporated physician.

If you’re a physician who has incorporated your medical practice, the general advice you may have received in the past from tax experts was likely to retain any and all earnings you don’t need within your corporation. This strategy might be relevant for some physicians who are building their wealth — but with tax changes, a more balanced approach might be warranted depending on your financial circumstances.

 

You might be affected by the new passive income rules, in which case a registered retirement savings plan (RRSP) or a tax-free savings account (TFSA) can help you keep more of your money. Work with your tax advisor and MD Advisor* to better understand the tax benefits of these strategies for you. You explain to them,  and help them better understand,  how to minimize your overall tax liability by looking at your whole situation.

 

To learn more, read Rethinking RRSPs and TFSAs for incorporated doctors and Incorporated physicians and RRSPs: The impact of the new passive income rules.

 

You probably receive very little training on being a business owner in your medical training. The complexity can sometimes make the practice of medicine feel like a job as opposed to a calling. Having the right financial advice, expertise and tools to manage your business is crucial.

 

Whether you are starting your own practice, buying into a practice, expanding or relocating your practice, your financial needs are complex.

 

A Scotiabank Healthcare & Professional Specialist can help you better understand the business financing solutions available to you and provide customized options that best meet your unique needs.

 

Learn more in the e-book Optimizing your finances as an incorporated physician.

Before making a decision to buy or lease, there are a number of factors that a physician may want to first consider. A big part of your decision will depend on your marketplace — what commercial space is currently available in the neighbourhood where you want to establish your practice and is it for lease or sale? With leasing there is less upfront investment as you build your practice in the early years; however, there is the potential of your landlord selling the property, resulting in having to relocate your practice. In addition to unforeseen set-up and relocation expenses, it can be costly if your practice needs to relocate in a different part of the city as patients may not move with you, resulting in having to rebuild your patient roster.

 

Owning your own commercial property could help mitigate business risks like these down the road. It can also turn into a valuable investment and a significant asset upon entering retirement: Depending on your comfort level and other financial circumstances, you could consider becoming a landlord leasing to another physician, decide to sell the asset, which may have appreciated in value, or pass it on to children or other family members.

 

A Scotiabank Healthcare & Professional Specialist can help you evaluate your options and provide advice to help you make the best decision for you, your patients and your practice.

 

We can help advise on affordability and equity building to own your practice with manageable monthly payments over a 25-year amortization.

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Already an MD client and want to talk about your financial plans? Contact your MD Advisor or visit MD.ca

To learn more about the personal, private and business banking solutions available to you or book an appointment with a Scotiabank Healthcare Professional, call Scotiabank Healthcare+ at 1-888-222-3918.