Commercial Financing for Medical Practices
Getting into the business of medical practice can be cost-prohibitive for many reasons. Not only will you need a building which meets strict legal codes, but you will also need equipment, supplies and marketing budgets. With the help of medical financing options, you can get everything that you need for terms that you can afford. You have several options to choose from including SBA Loans, bank loans and equipment financing options which can work together or separately to give you the cash flow you need to open your clinic.
SBA 7(a) Loans
The Small Business Administration is a government entity designed to help businesses under a certain size from start-up phase and throughout the growing process. The 7(a) loan program is one of the most popular things that the SBA can offer businesses because it can go a long way towards the growth and stability of smaller companies. These loans are partially guaranteed through the government, making it less of a risk for lenders to provide you with financing.
Medical financing options include loans from your bank. Each lender will have a unique application process that you will need to go through to get a bank loan, so it is a good idea to ask what that process entails before you get started. Most lenders will require that you have a business and personal credit check, have a solid business plan and bring relevant paperwork such as bank statements.
A good option to consider in addition to loans is equipment financing options. These options can be loans, but they can also be leases and rentals that help you better afford the expensive equipment you will need to set up a medical office. You can find many deals on leasing new or refurbished equipment and can even set most of your own terms because that market is fairly competitive. This means that you can make your startup budget stretch further without sacrificing the service that you are offering your patients. Since the market is competitive, you can even find certified refurbished equipment that has support plans built in terms of the lease.
Medical financing is more available than you may think. You can find SBA loans, bank loans, and equipment financing to help you start your practice or to help you grow it. Sometimes you can use all three of these options at the same time by getting a bank loan, partially backed by the SBA to help you make lease payments on refurbished equipment.