When owning a medical practice there is a huge financial obligation that goes along with it. Without the proper financing Doctors, Nurse and staff are unable to care for their patients properly. Keeping equipment up to date, supplies in stock and payment obligations met is a requirement when running a medical practice. However medical practice does not always have the capital on hand to make these purchases and payments, receiving most of their financial payments from insurance companies it can be 30 to 60 days to see any payments. Medical practice financing can help, getting these medical practices the money they need to run efficiently.
What is medical practice financing?
Medical practice financing is a loan offered to medical practices by banks and other lending institutions. Interest rates typically start around 2.5%, which varies with each lender and borrower. Lenders offer both secure and unsecured medical practice financing loans. Those medical practices receiving secured loans are required to have assets to put up on the loan. This secured the loan because if the borrower fails to meet the repayment obligation the lender can seize the assets and sell them to cover the cost of the loan. Assets typically used to secure a loan are real estate, equipment, supplies, and receivable invoices. Medical practices that are financed for unsecured loans are required to have high cash flow generating within their practice.
Common uses for medical practice financing
- Real estate
Medical practice financing is available to help these practices meet their financial needs and severe their patients with the best possible care.
How to get medical practice financing
- Find a lender that offers this type of financing
- Make sure your medical practice meets the lenders requirements
- Submit an application
- Negotiate the terms and conditions of the loan, if possible
- 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.