Practicing medicine is a demanding task; first you need to spend 4-years in an undergraduate program, 4 years in a medical school, and lastly, if you need a legitimate medical license you must have completed 3 to 4 years of residency training. It is challenging to land a well-established set-up right after the medical school. Business and financial planning are momentous to practice medicine. Plus, the only way you can clear off the student debt is when your clinic is running smoothly and financially blooming. Alternative and traditional lenders are offering business loans to finance medicine practices.
One can easily qualify for the business loan for the lenders are certain that borrowers can make the repayments on time. Hospitals, clinic, and health care center always have consistent cash flow, so lenders are not hesitant to offer business loans. Now you know that funding and financing opportunities are endless, you must choose the most well-equipped business loans for your financial troubles. Before we start to explore the types of financing options and various ways you can use them to your advantage, know that you can visit the following three places for medical practice financing for your dream clinic.
Small Business Administration (SBA) Loans
SBA is one of the most convenient options to get affordable medical practice finance. SBA does not offer small business loan directly, instead, it refers to the businesses to the lending companies. SBA Loan is an ideal funding option if your financial needs are long-term. If you don’t need instant access to the funds, you must apply for an SBA loan. The loan approval and application process of small business loans are stringent and lengthier than the traditional loan process. Usually, it takes weeks to a couple of months to complete the whole lending process. So, explore the other funding options and then make a wise selection.
Most of the business owners visit the traditional lenders when they want funds at an affordable rate. Just like small business administration, the loan approval and the review of the application are time-consuming so if you want fast access to the funds, then you might reconsider this funding option. What is the other option?
Alternative lenders are offering small business loans up to $5,000 to $500,000, with relaxed qualification criteria; the lender approves the loan in 24 hours. With a massive amount, you can carry out diverse changes in your medical practice. From using the funds in advertising and marketing campaigns to using to purchase new equipment, you can use the funds in whichever way you deem fit.
How can I use a business loan?
Have a look at these six ways you can take advantage of the business loans:
- Increase the number of staff and assistants
Running a medical clinic or a health care facility requires excellence and high standards. You can’t compromise or choose the second-best in this business. A minor mistake can cost a life, literally. A massive amount of money is required to run a top-notch facility, so if you are thinking about compromising, don’t! You can apply for a working capital loan and get the best staff on board. A lot goes into running a clinic; you can’t be attending patients, scheduling appointments, and managing accounts all by yourself! Get your hands on the funds and get the best team on board.
- Marketing and advertising purposes!
How can people come to you to avail your services, if don’t even know that you exist? Just like any other small business, you need proper channels to market and advertise. If you are starting fresh, then without customer flow you would not be able to pay the rent.
So, along with spending funds on hiring new people, you must spend a small chunk of money on running a stellar marketing campaign. You can start from social media channels, a website, and you can even sponsor local events to cause awareness regarding your services and clinic. All of this does not come for free, so you have the support of the business loan.
- Pay all of your taxes.
It is hard to generate enough revenue to cover all the taxes when you are just starting. So, sit with your accountant and church the exact amount of money to pay the taxes and apply for a term loan. It is more convenient to apply for a term loan and cover all the taxes rather than suffering from IRS penalties. Weigh the pros and cons and make a sound decision.
- Expand and buy.
So, next time you come across a golden opportunity to expand your business you must take its advantage, for now, you have a business loan to reply on. If you found a budget-friendly space for your business, you must apply for the commercial business loan. Although commercial loans are a bit time consuming but you must apply for one giving yourself enough time and margin.
- Medical Equipment
It is impossible to run a clinic without a doctor and appropriate medical equipment. From sphygmomanometer to x-ray and CT-scans, a clinic is like a home to billions of other medical machines. The price tags on these machines are higher, so you should apply for equipment financing. You will have two options, either you can apply for equipment leasing or loans.
The potential lender will offer you the exact amount to purchase the equipment, or you can get the equipment after paying the down payment. The point being, you will have enough funds to place and operate ultrasound and laser machines in your clinic.
- Add another skill into your resume.
The medical field is a field of its kind, staying up to date is a must! Getting certification or doing another course is expensive. With extra cash flow, you can easily take out the funds for studying. Sometimes one to get benefit from the opportunity right in a moment, a business line of credit allows you to take advantage of the pool of funds instantly. So, apply way and serve the nation by keeping yourself up to date.
Lastly, before applying for business loans for medical practice financing you must be familiar with your financial needs. Merchant Advisors is offering business loans on practical terms, head over to the website and apply away! For more ideas and tips, you can follow us on Twitter (@Onlinecheck) and Facebook (@Onlinecheck). If you have any question, feel free to call us on our toll-free number at (833) 827-4412, our loyal and keen financial advisor will answer your every question and guide you throughout the way.