With such high prices for medical equipment, supplies and real estate many physicians are looking into their financing options. Physician loans offer these physicians with an affordable way to get the working capital needed to make these big purchases are run their business efficiently, providing the best possible services to their patients.
Many physicians have less than perfect credit, the mass amounts of student loans they have put a dark shadow on their credit rating. Regardless of this lenders will review and make sure your medical business is safe to offer a physician loan, getting you the money needed to meet your current financial needs.
What is a physician’s loan?
A physician’s loan is a loan provided by banks and other lending institutions to physicians for updates, big purchases, and working capital. Those physicians with high cash flow within their medical business will most likely be eligible for an unsecured physician loan. Other physicians may be eligible for secure physician loans where they put up person or business assets to secure the loan. Assets commonly used include; real estate, receivable invoices, equipment and supplies.
Common uses for physician loans
- Real estate
- New construction
- Working capital for the medical business
Terms and conditions of physician loans
Each physician loan has its own terms and conditions, these vary with each individual lender and borrower. Interest rates vary, starting around 2.5% and rising. For those physicians whom put up collateral on their physician loan, if they fail to meet the repayment obligations the collateral can be seized and sold to cover the cost of the loan.
How to get a physicians loan
- Find a lender that offers physicians loans
- Make sure your medical business meets the lenders requirements
- Submit an application
- Negotiate the terms and conditions of the loan
- Sign the contract and set up a repayment schedule
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.