What is a physicians loan?A physicians 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 physicians 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 loansEach 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.