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So after spending countless hours in a library studying for your medical exams, fulfilling all the requirements to complete your medical degree, spending sleepless nights as a resident, establishing your medical practice, it may be time to expand your horizons and grow your business. However, expanding your medical practice is not an easy task.
Like any other small business owner, you’d need adequate funds to expand your medical practice. Quality small business funding options might be the only thing stopping you from elevating your business to new heights. There are quite a few things that you’d need to consider when expanding your business.
The costs involved in purchasing new equipment are high. You’d also need to invest in robust practice management software, not to mention the steep daily expenses required to operate your practice. On the good side, you can choose from various business funding options to expand your business. Let’s have a look at some of them.
Bank Loans
One of the first steps medical practices take to expand their business is opening up a new clinic. However, you need significant investment to help you buy new equipment, get insurance, bring in more staff, and much more. To achieve your goals, you’d likely need a bank loan that’ll help fund your endeavor. A small business bank loan from some of the top lenders in the country can be a viable option to fuel your medical business growth.
Many banks and credit unions across the country offer specialized medical practice loans that cover most of the expenses of moving into a new clinic. These bank loans will often carry low-interest rates and generous repayment terms. Banks are less stringent in underwriting loans for doctors as it is considered a low-risk industry. In saying that, you’d need strong business acumen and credentials and maybe collateral depending on the purpose of the loan.
Equipment Financing
If you’re not looking to move into a new facility but only want to upgrade your medical equipment, you can consider equipment financing. Most medical practitioners are on the lookout for modern technology to help them diagnose and treat. However, medical equipment is expensive, and many don’t have the necessary funds to get state-of-the-art equipment.
Also, you might have broken equipment that needs to be replaced or outdated machinery that is no longer acceptable by industry standards and regulations. All this requires money, and one of the best ways to go about it is to consider equipment financing. You can use this small business financing option to purchase large equipment such as a CAT scanner. Equipment financing can include leases and loans and doesn’t require collateral as the equipment you’re purchasing serves as one.
Leases are generally more expensive than loans but are suitable for business owners who don’t have sufficient qualifications (credit score, time in business) to qualify for a loan.
Term Loans
You can also consider getting a term loan to finance your large equipment purchase. Term loans are a type of traditional loan where borrowers get a significant sum of money repaid in installments within a pre-defined timeframe. You can get a term loan from a bank or even consider a digital lender.
Term loans are also suitable for meeting working capital requirements. They can help doctors with their short to medium-term working capital needs. They can provide you with emergency cash to help keep your business afloat.
Line of Credit
Working capital is crucial for every business. This is the money required to run your daily operations. They become more critical for doctors who sometimes have to wait a considerable amount of time for their insurance reimbursements. Doctors and other medical professionals need to ensure sufficient working capital. They often seek out fast working capital loans to help them with their temporary cash flow issues. However, another option you can see is lines of credit.
A line of credit is more suited towards long-term working capital needs. A LOC enables you to withdraw money only when you need them, and you only need to repay what you borrow. A line of credit is more of a cash cushion during unexpected times when you’re surprised by a large bill or an unwanted expense.
Small Business Administration (SBA) Loans
When expanding your medical practice or getting a new clinic for your business, you will likely need a loan to fund your ambitious plans. As an established medical practice with a strong business, patients, and enough collateral, you can qualify for a high-quality loan from the bank.
One of the most popular business loans in the US is guaranteed by the Small Business Administration (SBA). The SBA guarantees several loans through its financial institutions and lenders. You can consider going for the SBA 504/CDC loan that’ll help you expand your trucking business.
Medical practitioners usually opt for SBA loans due to their favorable financing options. The loans are long-term and can provide financing up to $5 million. They have quite low rates and a generous repayment term. It can go from 10 years to up to 25 years.
However, the competition is high amongst small businesses looking for SBA loans. The criterion is quite stringent, and you need to fulfill several factors before qualifying for the loan. In saying that, medical practices are viewed quite favorably as they have strong business acumen and are considered as low risk. Banks are not hesitant to give out SBA loans as the government backs them, and their money is protected if the business defaults on loan.
Where To Get the Best Small Business Loans?
Many business loan options are available for medical practices that can suit their unique business needs and requirements. QuickAssist is a reliable platform that can help you connect with top lenders across the globe who provide various financing options for your small medical practice. If you want to learn more about our services, visit our website. Alternatively, feel free to contact us for more information.