You need the capital to help you hire, market and grow. We can provide it, and our repayment terms are unlike anything in the industry.
While investing money into improving your practice is always important, any healthcare provider will tell you that there are many other areas requiring attention. For example, the cost of medical training continues to rise, with research showing that 35% of medical students expect to graduate with over $200,000 in loan debt, and 43% cite paying off this debt as their biggest financial concern.
Balancing the need to pay down loans with investing in your practice can be a challenge. However, putting money into your practice can help improve patient loyalty, attract new patients, and adapt to seasonal demand—leading to more efficient operations and business growth. This growth can, in turn, increase profitability, helping you pay off your debt faster.
The best loan options for your practice depend on your specific needs—whether you’re looking to start a practice, move to a new location, hire staff, or purchase new equipment. As a rule of thumb, equipment financing, accounts receivable financing, and a line of credit are three of the most relevant loan types.
The good news is that most lenders view medical practice loans as a safe investment, which works in your favor. Not only will lenders be more willing to work with you, but the loan terms will often be more favorable, showing that all your hard work and medical training are paying off!
Another option for smaller equipment purchases is a line of credit. Similar to a business credit card, a line of credit offers a revolving form of financing, providing cash whenever you need it. It’s especially useful for covering expenses while waiting for bills to be paid or navigating through business slowdowns.
A line of credit can be an optimal choice for less-established practices, as your business history is less scrutinized. Additionally, bad credit is often tolerated, though these factors can influence the interest rate. It offers flexibility, allowing you to access funds as needed without a fixed repayment schedule.
This type of financing helps you quickly get capital for medical equipment, computers, vehicles, and a host of other things you need to carry out your day-to-day activities. Plus, the equipment you purchase will serve as collateral on the loan, which can potentially eliminate the need for a down payment.
It’s worth noting that equipment financing is one of the easiest types of loans to obtain. Often, you’ll get the money is as little as 48 hours. Your interest rate and maximum loan amount will depend on the cost of the equipment, as well as your credit score and business history.
The average small business in America is owed $84,000 in unpaid invoices, but your outstanding invoices can actually be leveraged to get working capital through accounts receivables financing. These loans provide a cash advance (in just a day or two) worth about 85% of your unpaid invoices. Most of the remaining amount on the invoice will be paid to you when the patient pays up, minus the fees.
It should be pointed out that the fees on accounts receivable financing are often higher than traditional financing, so be aware that you’ll pay a premium for the convenience. Applying won’t take long, as you’ll just need the usual documents like bank statements, credit score, business tax returns, a voided business check, and documentation for your outstanding invoices.
These loans are partially guaranteed by the U.S. Small Business Administration. That means lenders are more anxious to work with you and will offer more favorable rates. On top of that, because medical practices are considered safe borrowers, you’ll get access to some of the best options available.
For smaller equipment purchases, you should consider a business credit card. Your card will provide easy access to cash whenever you need it, and at the same time, you’ll be able to build your credit and leverage a card reward program as well.
Business credit cards are ideal for those who have had trouble obtaining loans in the past. As long as you’ve got a credit score above 680 and have some business history, you should stand a good chance of getting approved. The maximum amount usually goes up to about $500,000, making it ideal for medium to small needs.
We’re here to help. Send us an email or call our experts at 1-305-890-9000
Gloven Capital offers business owners alternative working capital solutions through our various funding programs for business loans.
