A business loan could help you buy new equipment, hire staff or do up your place to serve your patients better.
Medical professionals often spend a lifetime to acquire the skills and expertise to excel in their chosen field. A natural progression after having spent considerable time in larger medical establishments is to set up their own private practice. Even for medical practitioners who have already set up their practice, sustenance would mean constantly upgrade their existing infrastructure, technology and services in a drastically changing environment. However, this is not often possible due to the high cost of medical equipment and infrastructure associated with the profession. Be it physicians, dentists or chiropractors, setting up a private practice often requires heavy investment in infrastructure and equipment that form an essential part of their profession. With latest innovations in healthcare technology, doctors today rely heavily on these machines to accurately predict and treat ailments.
So if you are a medical practitioner and looking to grow your own practice, a business loan could often be the answer. But before you decide to avail a loan, it is important to understand the benefits of a business loan.
Why do I need a business loan?
- Infrastructure development or upgrade existing set up
- Procuring or upgrading medical equipment
- Hiring staff and managing operational costs
- Marketing and promoting
- Regular cash flow requirements
As a medical practitioner, there are various loan options available to you. Listed below are a few.
Business line of credit – A line of credit gives you ongoing access to funds as and when required. This gives you the flexibility to draw only the required amount for regular business operations and daily cash flow requirements. You are charged interest only the funds you have utilised.
Equipment loan – Special loans can be availed towards purchase or lease of your medical equipment and infrastructure when you are setting up or upgrading your business. These loans can be settled over a set repayment period.
Fixed term loans – These loans give you the stability to repay your loans over a fixed period usually ranging from 6 months to 5 years. However, these loans usually require you to furnish a collateral against the loan.
Unsecured Business Loans – Unsecured business loans are usually preferred by small and medium businesses due to the flexibility they provide and the quick and easy access to loans. You can access anywhere from $5k to $500K with no collateral based on your credit score and business health.
Here, we will try and understand small business loans a bit better and why this could be a great option for your medical practice.
Unsecured small business loans are often offered for shorter periods ranging from 3 months to about 5 years and the loan amount varies from AUD $5000 to more than $500,000 depending upon the size of the business. These loans are also usually available in 1-3 business days and the documentation is relatively simple.
Why should one go for an unsecured business loan?
Unlike secured loans, which require business owners to pledge their properties, inventory, equipment or other assets, unsecured loans do not require small business owners to risk their personal or business assets to obtain funds.
Know more about Unsecured Business Loans in our detailed guide.
Here is how you can improve your chances of securing a business loan.
While there are many non-bank lenders who will provide you unsecured business loans, it is recommended that you consult a business lending specialist to secure a loan for your practice. Below are a few reasons why:
Lending Criteria – Each lender has a different criteria on who they can and cannot lend to. It’s not necessary that the lender you approach would be the ideal one for your loan.
Varying interest rates and terms – The rate of interest charged by each lender varies. So do the terms and conditions. A good understanding of the lenders’ offer helps lending specialists to match your requirement to the right one.
Credit ratings – A good understanding of your own credit health and the requirements of the lender in this perspective is a must know. Some lenders could be a more flexible than others in granting loans.
Documentation – The documentation has to be comprehensive. A good lending specialist will understand your business needs and help you in the documentation process to considerably increase your chances of securing a business loan.
To know more about how to secure a business loan for your medical practice, reach out to us today.
Tagged in: Business Finance, Business Loans in Australia, Loans for Doctors, Medical Loans, Unsecured Business Loans