Expenses for doctors can seem endless. There is often a need to look into financing options when their practice is no generating enough cash flow or invoices have not been paid yet. Most Doctors and eligible for a loan. Lenders realize the strain student loans put on their credit history and still offer them the financing they need. Doctor loans can be used for a variety of reasons; updates, equipment, and supply purchases meet payment obligations and so on.
What makes a loan for a doctor different?
A doctor loan is provided by banks or other lending institutions to doctors as a loan to meet their financial needs in their practice. Doctors’ loans often have low-fixed rates with flexible repayment options. Lenders offer secured and unsecured loans to Doctors. Those receiving secure doctor loans are required to use an asset as collateral. Those receiving unsecured doctor loans often have a high income within their practice that acts as security to the lender.
Common uses for Doctor loans
- Meet payroll and payment obligations
Terms and conditions of doctor loans
Doctor loans often have low-fixed rates starting around 2.5%. This rate varies by each individual borrower and lender. Loan terms also vary by the loan amount. When taking out a secured loan any assets used as collateral can be seized and sold to cover the loan cost if the Doctor fails to meet the repayment obligation.
How to get a doctor loan
- Find a lender that offers this type of financing
- Make sure you meet the lender’s requirements
- Submit an application
- Negotiate the terms and conditions to the loan
- Sign the contract and set up a repayment schedule
Tips when looking for a Doctor Loan
- Just as with any other type of loan it is important to shop around to find a lender offering a great loan option.
- Only borrow what you truly need
- Make sure your practice can afford the monthly payments
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.