What is the benefit of taking a Medical Practice loan?
Published on 2021-11-09
Category: Small Business Owners, Business Loans
It can be difficult to balance the sky-high costs of opening a medical practice and the associated medical equipment, infrastructureand hiring all at once. At times established clinics need outside funding for operating costs, pay for new equipment, potentially expand to another location and more.
How do Medical Practice Loans Work?
Should your practice need funding for new or established medical services, medical practice loans can be beneficial. Your establishment qualifies for a medical practice loan based on the financial health of the practice itself and, on the credit score and history of the medical professional.
Established medical professionals bring in a consistent stream of revenue owing to the nature of their work. Most financial lenders prefer to fund medical professionals who aspire to set up their own medical practice. Compared to many other industries, it is easier for medical professionals to secure funds when they require a loan.
Who provides Medical Practice Loans?
A varied number of banks, non-bank financial institutions, investment firms or a group of individuals could fund your business. If you are looking for an unsecured loan, the best alternative is NBFCs who can provide you the loans in a couple of days.
Where does one use their Medical Practice Loan?
Medical practice loans can be used to realise your plans for expansion. For example, perhaps you can start a new practice, expand into the space next door, advertise to the local community to pull in new customers, a new clinic on another side of town, salary and other benefits for employees, purchase an ambulance, new equipment for faster and more accurate diagnosis, community outreach and the list goes on.
Who can apply for a Medical Practice Loan?
You can qualify for a medical practice loan if you are in the traditional medical space like primary care, gynaecology, paediatrics, plastic surgery, dermatology, psychiatry or even a non-traditional medical profession like massage therapy or Reiki. The basic pre-requirement is that you have an existing business with a decent monthly turnover. The funding amount will depend on a few factors like time in business, average monthly turnover and your credit score.
How would it work for my practice?
When you apply for a medical practice loan you would have to provide documents that verify your employment status, personal financial details and, the nature of your practice. Additionally, the commercial lenders will need insight into records of sundry debtors, accounts payable, the cash flow, existing debt, profit and loss statement and more.
Once the documents have been thoroughly examined and your loan secured, the funds will be allocated to your practice’s commercial account in a matter of a couple of days and you can begin realising those business goals.
Remember to keep a detailed record of spending for your tax record. While there are few restrictions on the use of funds it will be best for your practice to have every bit of sum spent recorded for potential scrutiny.
What would the process look like?
Collect and organise your documentation: Your lender has to understand your business and its requirements. So make sure you have documents like your personal finances, business plan, lease contracts, balance sheet, financial projections, income statements and more.
Have a clear understanding of how much you would need: Come with a concrete figure that you need and provide information around where you will invest the loan sum.
Application submission: Once all the necessary information has been divulged to your lender you can now sit back and wait for approval.
On approval, you will receive the lump sum in your business account ready to be spent.
Medical practices form the nucleus of the local community, and the past two years of the pandemic have only highlighted their indispensable role further. The development of these centres of health and wellness are imperative to the overall well-being of the community at large. With CapitalBoost you will be provided with the most suitable loan options so you can leave the stressful scouting behind and focus only on your medical practice.
Tags: Medical practice loans, Doctor loans, Business loan for Medical professionals, Small business loans, Business loans, Medical loans for owners, Apply business loan Australia, Loans for medical professionals, Unsecured loan, Business expansion loans, Apply for a medical loan, Medical finance, What is medical business loan?
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