When you need access to medical practice financing to run an office or clinic, a little advance planning and research will help you get started. Here is our best advice on funding your new practice.
Estimating and Managing Medical Startup Costs
Starting up a new healthcare practice is costly, especially if you’re still paying off student loans. Even if you have no other debt, there are myriad costs involved in setting up a new practice, whether it’s your first office ever, if you’ve moved to a new area or moved on from a hospital or medical group. First, you should size up the amount of loan you’ll need. You’ll want to budget for:
- Real estate purchase or lease
- Construction or remodeling
- Medical equipment
- Legal advice from an attorney
- Tax advise and ongoing bookkeeping from an accountant
- Medical supplies
- Working capital to hire staff, advertise, purchase various types of insurance, etc.
- Buying into another practice*
- And more
* To shortcut the process of getting your new practice up and earning, you might instead budget for buying into an already-established practice–or purchasing the business of retiring or relocating doctor. Alternatively, you can consider sharing space (and real estate costs) with another doctor or related practitioner, like a physical therapist.
How to Arrange Medical Practice Financing
- SBA Loans: Also called 7(a) loans, these are backed by the SBA so qualifying can be simpler than a standard business loan.
- Business Loans from Traditional Banks: If you have good credit and a relationship with a major bank, getting a loan there may make sense.
- Non-Bank Lender Term Loans: Capital investment firms and other types of funders can generally provide more loan types and options than traditional banks.
- Short-Term Loans: Repaid in 18 months or less, short term loans require less paperwork than traditional loans, but interest rates may be quite high.
- Business Lines of Credit: You’ll get provide access to a specified credit amount, which you can draw upon as needed without the need to reapply.
- Equipment Financing: The purchased equipment serves as collateral securing these loans.
- And more…
For medical practice financing options with flexible terms, contact the experts at Proactive Funding Solutions today.
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