Medical Practice Loans
Whether you are planning to purchase a new medical practice or you are expanding your existing business, there are a number of funding options to consider. Lenders typically find doctors to be ideal candidates for loans, due to their potential earning power, healthy revenue and high net worth. Having an understanding of the particulars of each form of medical financing can help you make smart decisions for your company.
Traditional lenders can offer attractive rates and terms, and some banks offer financing that is geared specifically toward healthcare professionals. If you are hoping to borrow a specific amount of money and make set monthly payments, this funding may be right for you, especially if you need a large sum. However, the qualification process can be lengthy, and the requirements can be fairly strict.
The Small Business Administration works with lenders by guaranteeing loans for small businesses, thereby encouraging banks to take a risk on companies they may not ordinarily consider. These loans can offer attractive terms and interest rates, but the process can be rigorous and approval can take awhile. If you can prove your creditworthiness and don’t need quick access to capital, then this may be a good fit for your medical practice.
Doctors with heavy debt, such as student loans, may not qualify for bank or SBA loans, but luckily, there are other choices available. Alternative lenders typically provide funds with shorter repayment periods, and they can carry higher interest rates. If you need a short-term loan to take care of an immediate financial need, then an alternative loan could be the right form of medical financing for you.
Business Lines of Credit
If you need expedited funding, a business line of credit can offer you fast approval with flexible payment options. With this financing, you can be given a set credit limit and you can borrow up to that amount. You make payments only on the money you use, and the line revolves, meaning that you can reuse and repay the funds in your line again and again.
Medical Equipment Loans
Your practice likely needs expensive machines and equipment to meet the needs of your patients. Equipment loans can help you finance these purchases that may otherwise be cost prohibitive. Because the equipment acts as your collateral, the qualification process can be easier than other types of loans.
As your practice continues to grow and thrive, you can benefit from the multitude of medical financing products available to healthcare providers. Explore your options carefully to find the right match for your needs and goals.