Deciding to strike out and open your own practice may cause excitement and nervousness. It requires planning and money to build a medical practice from the ground up. Getting the financing to start is a crucial element as, according to Forbes.com, there are many factors to consider. There are various ways to secure the capital needed for starting a medical practice. At Doctor Genius, we want to see your practice become a reality. Find out the basic ins and outs of a medical practice loan to get things going in the right direction.
The basics of a medical practice loan
When a provider comes requesting financing, banks want to know about the practice. As a startup, there are no records or statements to supply. Thus, when seeking a loan, you must provide copies of your business plan, financial projections, and insight into how well similar practices perform in the area. Depending on your age and the state of your personal accounts, you may need a co-signer or someone with solid finances to back a traditional loan application.
Types of loans for medical practices
As a medical practitioner, you may find there are more types of loans available for you than the lending options for traditional businesses.
Equipment leasing
Opening a medical practice often requires expensive and advanced equipment. Purchasing these items outright may not make much sense because the technology is always evolving and newer models are introduced frequently. You may want to instead take a look at leasing the equipment you need. Finance companies and equipment retailers may have contracts that allow medical practices to rent any piece of equipment needed. At the end of the lease term, you may choose to purchase the items or lease new models.
Line of credit
There are times when the practice may need access to cash quickly. A business line of credit may prove the best option. This financing option allows you open access to a set amount of funds. You use what you need when you need it. Otherwise, the available balance remains accessible only when it is needed. This type of loan can provide peace of mind for emergency situations.
Short-term business loan
A short-term business loan is one of the easiest ways you can get cash for your practice. Many lenders have online portals and can provide approval in a short time. These loans are typically best for situational purchases. The information required to get this type of loan is minimal and the money usually is provided quickly. The repayment terms can range from three months to three years, with payments typically auto-debited from your business account.
Let us help calculate costs
Do not let the worry about securing a medical practice loan overcome the prospect of starting your own business. With so many financing options available, you can surely find something that fits your needs. Keep in mind that there are other requirements for creating a successful business and financial forecast. Marketing and digital development is something that our team at DG can help you pin down. Call us at 1-877-477-2311 for a consultation so that you can factor in these essential costs.
Doctor Genius, located at 16800 Aston Street, Suite 270, Irvine, CA 92606, provides a range of services for practice success. We seek to meet our clients’ needs by providing a variety of marketing, SEO, practice optimization tools, and coaching to transform the healthcare experience. Though we work to provide the most accurate information, the content found on this website is solely intended for entertainment purposes. Therefore, we cannot guarantee that the information provided is entirely correct. You may not use the information on this site to cure, prevent, or diagnose a perceived medical issue. If you have healthcare-related needs, please speak directly to a healthcare professional. Never self-perform medical treatments discussed on this website. All images displayed are also for entertainment purposes only, and personal experiences may differ. Please note that the business tactics mentioned on this site might not be applicable to your industry or practice.
