Best Business Loans for Medical Practices
Medical Practices face 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. Medical practices face many financial hurdles, including:
- Medical consumerism
- Regulatory uncertainty
- 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 business financing.
AdvancePoint Capital has been experienced in the funding of Medical Practices for years and can help you access those new alternative business 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 business.
The 7 Best Business Loan Options for Medical Practices:
Long-Term Business Loans for Medical Practices
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 business loans require high credit standards for established businesses with at least two years in business and a significant amount of paperwork. Approval for this type of loan can take up to a week.
Benefits of Long-Term Business Loans:
- Low rates starting from 4%
- Terms from 1 to 7 years
- Monthly payments
Short Term Business Loans for Medical Practices
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.
Benefits of Short-Term Loans:
- 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 business day funding
Equipment Loans for Medical Practices
Equipment is a must for Medical Practices. The equipment in a medical practice can be expensive and costly. 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 business 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 for Medical Practices
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. An SBA loan provides 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.
Benefits of Equipment Financing:
- Interest Rates from 4% to 7%
- Terms from 1 to 25 years
- A variety of acceptable business uses of money
Merchant Cash Advance for Medical Practices
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 for Medical Practices
Business credit cards, the same as personal credit cards, 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
Operating a Medical Practice is a complicated venture that has a lot of moving parts to it. There are a variety of issues that can impact the cash flow of the business, 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 business and stabilize cash flow.
Business Facility Expansion/Renovations
Your medical practice may need renovations, upgrades, or repairs to the facility to keep up with the latest treatments. Sprucing up the interior décor or exterior appearance of the practice may also be necessary to maintain or attract customers and maintain a competitive edge.
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 business debt consolidation may be necessary to improve overall cash flow for a business.
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 this type of business financing 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.
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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
- Hospice Care Providers
- Ophthalmologists/Optometry Practice
Why AdvancePoint Capital?
- Experience- with Restaurant Industry. We have been funding restaurant businesses for years.
- Trust-Excellent reviews and feedback from Restaurant Companies
- Loan Specialists –Experiences Business funding specialists who know the restaurant industry.
- No cost, no commitment quotes
- Products – A Variety of Restaurant Business Loan Products. We don’t just offer what we have; we offer what’s available in the marketplace.
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