Options for Doctors To Get Loans for a Medical Practice
If you’re a medical professional hoping to open your own practice, there’s a lot to consider. For example, you need to either purchase or rent space where you can set up your office. You also need to pay employees such as nurses and receptionists. There’s also a great deal of medical equipment to be purchased or leased, which can get quite expensive.
The good news is, you can access working capital with a business loan. However, there are many different types of financing available. In fact, here are the pros and cons of the most common options.
Alternative Business Loan
Alternative business loans are offered by private money lenders. These enterprises aren’t banks or credit unions, which means they have a little more leeway in the types of loans they offer. For example, they can provide stated income loans for real estate, while traditional banks can’t.
You may benefit from an alternative business loan if you need funding fast, as most lenders can get the cash to you in a matter of days instead of weeks. However, oftentimes the interest is higher on these types of loans because they’re short-term or rely on collateral instead of your credit history for security.
Small Business Loan
If your company employs fewer than 500 people, you may qualify for small business loans. These are backed by the Small Business Administration and are specifically designed to fulfill the needs of smaller enterprises. They may be easier to get than a traditional loan because the qualifications are set with small businesses in mind.
However, you still need to have decent credit to qualify. If you’re a startup or had a bankruptcy in the past, you may not be eligible for a SBA loan.
Finally, you can apply for traditional financing. Even if you don’t qualify for a traditional business loan, you may be able to get adequate funding through personal lending. For example, you can use property in your name to get a line of credit, which you can then use to purchase medical equipment or other necessary items.
The one thing to remember is that if you default, your personal property is on the line. Before you take that risk, make sure you evaluate all the options available to determine if this is the best choice.
It isn’t easy being both a medical professional and a business owner, but with the right funding, you can make your practice flourish. With the many financing options out there, you’re sure to find the right choice for you.