Doctors and dentists are entrepreneurs too. They need financing to get their medical practice started or upgrade their existing one. Small business loans can help these medical practitioners equip their clinics with the proper tools and purchase the necessary supplies. Start-up costs can easily pile up and are difficult to fund personally, especially if you are still paying your med school debt.
Medical Practice Loans
The costs it takes to get your practice up and running vary but they usually include office space rent, medical supplies, medical apparatuses and implements, computers and office furniture, and malpractice insurance. While you can manage on your own initially, you will still require professional services for your accounting and tax matters. Renovation, expansion and to some extent relocation costs also need to be looked out for.
In this light, there are business loans specially made for medical practitioners. These medical practice loans can cover a myriad of perceived needs in the industry such as working capital, line of credit, equipment purchase, and commercial real estate (those looking to relocate to their own office space or building).
You can shop for small business loans among various lenders, they can be private banks, online lenders and so on. The Small Business Administration, through its approved lenders, also offers loans for physicians, chiropractors and other practitioners in the medical field.
Getting Small Business Loans for Medical Practitioners
Securing the right medical practice loan involves personal introspection and comparison shopping for the best deal.
From your end, you have to consider the following:
- Credit. Whether your credit is good or bad will determine the rate you’ll be getting and the willingness of the lender to give you a loan.
- Loan Amount. In arriving at your loan size, list down your expected expenses and weigh them against your projected revenues. Rolling fees into your loan could increase its balance.
- Loan Term. Decide for how long you intend to repay your medical practice loan. Generally speaking, longer-term loans keep your monthly payments lower but more goes to your interest costs. Shorter-term loans call for higher monthly payments at relatively lower rates. Do note your rate would depend on your credit and how soon you need the loan.
One more thing, you have to back your loan application with a solid business plan complete with cash-flow projections to demonstrate your ability to pay the lender back.
Don’t hesitate to approach lenders for loans and look into what they can offer for you.