Best Business Loans for Medical Practices

Small business opportunities often come with loan needs. The same can be said for medical practices. That’s why we offer medical practice loans and opportunities that you won’t find at your bank. AdvancePoint Capital provides a wide range of practice loan options and financing solutions for your healthcare company.

Your practice faces unique challenges in the ever-changing world of health care management. Mergers and acquisitions have become more popular due to rising costs and other industry factors. Healthcare practices face many financial hurdles, including:

  • Consumerism
  • Regulatory uncertainty
  • Competition
  • Mergers/acquisitions
  • Healthcare technology

Nearly half of all healthcare practitioners no longer have an ownership stake, so those who do need to be prepared for needs that may require the need for financing.

AdvancePoint Capital has been experienced in medical practice loans for years and can help you access those new alternative lending products. We understand the difficulties of operating a medical practice and the need for business funding to support it. Our job is to effectively provide the best business funding products to you so you can effectively operate your practice. We offer a wide range of medical practice financing options that empower our customers and move them forward.

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The 7 Best Business Loan Options for Your Medical Practice:

 

Long-Term Business Loans

Long-Term business loans are always the most desirable as they offer the longest terms to repay, typically from 2 to 7 years. Long- Term loans are a lump sum provided upfront with principal and interest rates that start around 7% with monthly payments. These loans require high credit standards for established businesses with at least two years in business and a significant amount of paperwork. Approval for medical loans such as this one can take up to a week.

Benefits of a Long-Term Business Loan:

  • Low rates starting from 4%
  • Loan terms from 1 to 7 years
  • Monthly payments

Short Term Business Loans

Short-term business loans are term loans that provide a lump sum of money that is repaid over terms of 6 to 18 months. When approved, you get a fixed amount and a fixed amount you have to pay back. The difference between is the cost, with a fixed payment auto deducted from your business bank account monthly, bi-weekly, weekly, or in some cases daily out of the business bank account. Limited paperwork is required and credit requirements are more lenient than that of banks or traditional term loans. If you need cash fast, this medical practice financing option can be a great solution for working capital, commercial real estate purchases, renovations, and more.

Benefits of a Short-Term Loan:

  • Credit accepted from excellent to poor
  • Lower monthly or annual revenue requirements than those of traditional business loans
  • Fast and simple process with the same day to next day funding 

Business Line of Credit

A business line of credit works like a credit card in that it is a revolving line of credit and allows you to draw money out and then repay at any time with you only paying principal and interest on your outstanding balance. While it’s not technically under the umbrella of “medical practice loans,” it does provide a financing option for healthcare institutions. Credit lines do have credit limits and are usually renewed annually but can be continuously extended depending on the lender. Both banks and alternative lenders can provide business lines of credit.

Benefits of a Business Line of Credit:

  • Ability to draw money at any time
  • Allows borrowers to spend the money, repay it, and spend it again 
  • Principal and interest rates starting at 5%
  • Lower costs and fees than most other financing products

Equipment Loans

Equipment is a must for the healthcare industry. The medical equipment and machinery needed to operate a practice can be expensive and costly, to say the least. Equipment financing usually comes in the form of leasing or term loans. The equipment is used as collateral, and decisions are also made based on the credit of the business owner and the health of the financials.

Benefits of Equipment Financing:

  • Simple application 1-page application
  • Limited financial paperwork
  • Repayment terms from 1 to 5 years
  • Monthly payments

SBA (Small Business Administration) Loans

An SBA (short for Small Business Administration) loan is administered by the Small Business Administration agency and sets the guidelines that must be followed to ensure the business loan for participating lenders. The SBA works with lenders to provide loans to small businesses and does not lend money directly. SBA loans provide long-term, fixed interest rate financing at very attractive interest rates and terms. Although popular, the process is a lengthy process with extensive paperwork, may require collateral and high credit standards. However, SBA loans offer great terms and an interest rate that works in your favor.

Benefits of Equipment Financing:

  • Interest Rate between 4% to 7%
  • Loan terms from 1 to 25 years
  • A variety of acceptable uses of money

Merchant Cash Advance

Merchant cash advances (also known as Future Receivables Purchase and Sale Agreements) provide an upfront lump sum of money to businesses in exchange for a fixed percentage of the businesses’ future sales. Repayment is typically made daily or weekly. With a merchant cash advance, an ACH payment auto-deducted from a business’s bank account or the percentage is taken out of future credit card sales until the payback obligation is met. Terms are expressed as a future sale, so you are given a fixed amount and then responsible for paying back a greater amount through a fixed percentage of future sales. The difference between the amount given and the amount paid back to complete agreement is your flat cost of money. The estimated time to repay is typically 6 to 18 months, but there are no term limits as the repayment is based on future sales.

Benefits of Merchant Cash Advances:

  • Flexible repayment terms attached to future sales
  • Provides funds to business owners with Sub Prime Credit
  • Payments fluctuate to future sales controlling the margin of profit

Business Credit Cards

Business credit cards work similarly to personal credit cards and are a revolving line of credit with a credit limit with a minimum monthly payment requirement typically lower than that of a business loan. You are issued a plastic card with an account number that can be used online and in-person for any purchases. You only pay interest based on the current principal.

Benefits of Business Credit Cards:

  • Can be used 24 hours a day, seven days a week 
  • No limitations on use of funds
  • Flexible monthly payments payments 
  • Principal & Interest rates

Benefits of Medical Practices Business Loans

Running a healthcare operation requires loans and financing options that work for the practice, not against it. Medical professionals rely on education, tools, equipment, and technology to get an advantage in the field. Unfortunately, those advantages aren’t cheap and may require a loan. However, there are many benefits to obtaining medical practice loans. Whether you’re looking for new real estate opportunities to expand the practice, or you need financing to keep up with operational costs — there’s a loan option for you.

Cash Flow

Operating a  practice is a complicated venture that has a lot of moving parts to it. Opening a new practice can be even more complex. There are a variety of issues that can impact the cash flow of the practice, like staffing, receivables, and collections, pressure from large medical groups, and competition. Meeting payroll is not an option as well, so it’s important to have a business credit facility in place to control the ups and downs of the company and stabilize funds with working capital through a variety of loan options.

Software and Technology Upgrades

As new innovations are always omnipresent, it’s important to have the business credit facility available to acquire the necessary technology to keep up with best practices in client management, treatment, record keeping, and other processes.

Business Debt Consolidation

Debt can build up in a Medical Practice, so debt consolidation may be necessary to improve the overall cash influx for a practice.

Purchasing a Medical Practice

Medical practice acquisition is going on at an ever-increasing rate. Most practices are financed due to the high cost of the sales price, so finding medical practice loans of this type is a must.

Medical Equipment Purchases

There are always new types of equipment being developed in the medical industry to deploy new tests and treatments. Equipment financing is available to defray those costs and not negatively impact your balance sheet or cash flow and can offer loan options that upgrade or improve equipment for patient care.
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Types of Medical Practices We Serve

    • Doctors & General Physician’s
    • Dental Practices
    • Nurse Practioner’s
    • Veterinarian’s/Veterinary Practice
    • Medical Professionals
    • Private Practice Physicians
    • Chiropractors
    • Hospice Care Providers
    • Ophthalmologists/Optometry Practice

Why AdvancePoint Capital?

  • Experience- with the Medical Industry. We have been funding medical practices for years.
  • Trust-Excellent reviews and feedback from our Medical Clients.
  • Loan Specialists –Experience Business funding specialists who know the medical industry.
  • No cost, no commitment quotes.
  • Products – A Variety of Medical Practice Loan Products. We don’t just offer what we have; we offer what’s available in the marketplace.

AdvancePoint Capital specializes in providing medical institutions with the financing options they need to grow and thrive. Medical professionals and small business owners alike can benefit from alternative financing. Traditional loan options from the bank can encompass strict credit requirements and loan paperwork that slows down the process. We believe that our variety of medical practice loan products can help your healthcare practice get the cash it needs to manage commercial real estate needs, payroll, mergers and acquisitions — along with other operational needs. Whether your practice is a small business or an enterprise, you’ll need medical practice financing and loan options that work for you when you need them most.

The fast, convenient and straightforward way to get the money you need for your business – now!

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* All loans made by either WebBank, an FDIC-insured Utah industrial bank, or Bank of the Internet Federal Bank, an FDIC-insured federally chartered thrift located in California. In connection with the loans, the Banks' underwriting conditions and terms apply.