SBA loans are secured in-part by the Small Business Administration.

If you have strong personal financials or you’re already running a booming practice, you could be a great candidate for a medical practice loan.

So, if you borrow $100,000 from a lender charging a 3 percent origination, you will have to pay $3,000 at closing. Clarify Capital is rated 10/10 based on 113 reviews on, There is no collateral or personal guarantee needed for an unsecured term loan, Both good and bad credit scores can get approved by a lender, Withdraw funds on-demand as financial needs arise. These products carry high borrowing limits, low rates, and long terms. Mid prime alternative offer affordable short and medium-term financing to small businesses without nearly the credit and documentation requirements that bank lenders require, and funding can be completed within 1-2 weeks. The underwriting process at traditional banks can be lengthy, confusing, and opaque. If your application is declined, it might be because you applied for the wrong product for your cash flow. Do I need to have collateral, and if so, what would be acceptable collateral for a business loan? However, there are other SBA loan programs that newer businesses can take advantage of. And when the busy season arrives, doctors need plenty of help and can go through supplies very quickly. Contact us anytime: Complete a simple application in a few minutes and see how much you qualify for. What Length of Term Life Insurance Should You Get? We know the ins & outs of business funding. While traditional banks take weeks, Clarify can get your practice approved and funded in 1-2 days. Getting a business line of credit could be preferable to a loan if your practice has ongoing financial needs or you’re worried about borrowing more than is really necessary. If you’re looking for the most advantageous loans on the market, you’ll need excellent credit, perfect cash flow, collateral, plenty of money in the bank, high annual revenue, and at least two years in business.

On the other hand, a Business Line of Credit is designed to cover short-term expenses, like monthly bills or inventory. If your medical business is growing steadily, you might need to expand your practice’s existing office. Get inspired, read advice, and learn how to help your business thrive. In this guide, we’ll answer the following questions and more: Medical Practice Business Loans are business loans that are specifically geared towards the cash flow cycles and expenses of medical practices.

Some of the most common use cases for medical practice loans include: Working capital refers to the funds used to run your business on a day-to-day basis.

There is no pre-payment penalty to pay off a balance sooner, Good credit score is not a requirement as the equipment is used as collateral by the lender, Long payment terms -- loan term length can be 5 to 25 years, SBA guarantees up to 85% of the total loan amount to the lender. To learn what’s needed for the SBA Loan application, visit our SBA Loan page. Your actual loan is through an SBA approved lender.

If your credit score is preventing you from accessing financing, you should consider these credit repair services. These types of specialized business loans are available at traditional banks like Bank of America or Wells Fargo as well as through online lenders (although loans for medical residents are largely limited to traditional banks). We're committed to helping doctors pursue the American dream. In part 2 of our discussion with Banker’s Healthcare Group, hear from the President of Patient Lending, Keith Gruebele, on how these programs can benefit your practice by extending the amount of patients that can receive and finance your services. All Rights Reserved. When you factor your unpaid receivables, the factoring company takes over the responsibility of collecting from the carrier. To meet the needs of health care businesses in need of faster financing without the underwriting process, several alternative lenders have recently been established.

Mid Prime alternative small business lending is a form of medical practice funding that is the middle ground between bank-rate financing, and high-interest merchant cash advance lending. From a legal standpoint, Medicare and Medicaid can only send reimbursements to doctors, not factoring companies. Doh! Of course, it will not be easy to cope with such a difficult task alone. Apply online, get your loan, and get back to making patients happy. Disadvantages of alternative loans. If you have to replace the equipment before the original loan is paid off, it’s possible you may have to get another loan to cover the replacement if you don’t have cash available. There’s a significant amount of paperwork involved, and there’s no guarantee that after going through the arduous application process that you will be accepted for financing. From anesthesiologists to urologists, we've helped over 10,000 doctors shop for financial services and find better rates. But because they offer the best rates and terms, they also are very picky in the medical companies they’re looking to fund. With equipment financing, the equipment typically serves as collateral. Consider what collateral you may offer for a physician loan if necessary.

Repayment is usually made through the use of daily remittances through daily ACH (only during business days). She has a bachelor's degree in English Literature from Cal Poly San Luis Obispo, and specializes in writing about the intersection of business, finance, and tech. If you have outstanding debt, a loan from Clarify can consolidate them to a lower interest rate and smaller monthly payments. Healthcare financing can provide the capital to replace aging technology, open new locations, and retain the people needed to grow your practice. Most medical practice loans are designed for physicians who are already practicing or are licensed and preparing to start a practice. Consistently making your business financing payments on time and in full will have a positive impact on your credit.

In the United States there are roughly 915,000 physicians and surgeons who currently have active licenses to practice medicine, and that number seems to be growing at about 2% per year. Are you looking to cover a short-term or long-term cost? © 2020 MJH Life Sciences™ and Physician's Practice. One potential downside is that you may not be able to borrow as much with a term loan compared to a medical practice loan. You could theoretically access plenty of cash to get through a slow season, without making substantial payments until business picks back up. To either discourage prepayment or to recoup the loss of interest income, lenders may assess a prepayment penalty or fee. Some lenders go as far as instituting a lockout. This acts as an insurance policy for the lender, which encourages them to make loans available to eligible businesses.

The myriad of financial dilemmas medical practices face also makes it hard to figure out how much to borrow. Here’s how: Once you decide on a lender, read the application thoroughly to make sure you’re providing all the information requested.

Medical practice loans can be used by general and family physicians as well as doctors who specialize in specific areas, such as dermatology, pediatrics, plastic surgery or podiatry. Even with this growth in the health industry over recent years, and considering the fact the U.S. is dealing with an aging population, the majority of America’s physicians work in small practices (56.8%) of U.S medical physicians work in small practices. United Capital Source offers Medical Practice Business Loans to bridge these gaps in cash flow so doctors can serve as many patients as possible. Without the proper tax planning strategies in place, a physician could face some costly and unwanted surprises. At the very least, you will likely be expected to sign a personal guarantee, which would make you personally responsible for the loan. Banks offer both term loans and lines of credit to medical professionals. But there are some lenders who will make medical practice loans to doctors, dentists and other medical professionals while they’re still in residency and planning to open their first practice. I’m looking forward to working with them again when I need to buy new equipment for my practice.". Banks offer both term loans and lines of credit to medical professionals. If you have excellent credit and strong cash flow, you don’t need collateral to access high borrowing amounts, low rates, and long terms.

Term Loans for Doctors. There’s more than one way to get funding for your medical practice. Get up to 100% of the funds needed to acquire a practice. Financing from a lender lowers your own personal risk and ensures a smooth transition after the acquisition. If you’re starting a new practice, develop a thorough business plan that details your startup costs and projections for profitability. Get personalized rates for a practice loan in minutes. What is Own Occupation Disability Insurance? In this case, we would likely recommend a different product with a less hazardous repayment structure. Unless a bank offers a physician loan program with 100 percent financing, you will need to provide a significant downpayment to obtain financing. We might also decline your application after determining that you cannot afford to take on more debt at this time. Underwriting is not as arduous as for traditional and SBA lenders. Traditional banks that have physician programs are usually the best option if you’re purchasing or buying into an existing practice that has documented cash flow. information. Banks offer both term loans and lines of credit to medical professionals for use in the business’s operations, but also to buy the real estate their practice is located in. GUD Capital is a nationally recognized leader in the financing industry for providing the best business lending solutions available. We make it incredibly simple to compare rates on physician mortgage loans, physician disability insurance, student loan refinancing, and other financial services for medical professionals. You can then use that money however you see fit in your practice. A line of credit or working capital loan can provide the funding to keep moving forward. Take a few minutes today to get your personalized loan quote! With Accounts Receivable Factoring, eligibility is more dependent on your customer’s creditworthiness, not your own. You can also obtain funding if you have limited collateral.