Like any small business owner, optometrists often run into situations that require the need for financing. That’s why we offer optometry practice loans and opportunities that you won’t find at your bank. AdvancePoint Capital provides a wide range of optometry practice loans and other financing options for your healthcare company.
Your medical 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:
• Regulatory uncertainty
• Mergers and acquisitions
• Healthcare technology
Nearly half of all optometry practitioners no longer have an ownership stake, so those who do must be prepared for the reasons many require optometry practice financing.
A physician turning to large banks like Wells Fargo, U.S. Bank, and Bank of America for optometry practice financing has become more challenging to get a bank loan due to their strict underwriting guidelines.
AdvancePoint Capital has been experienced in optometry practice financing and physician loans for doctors for years and can help you access those new alternative lending products. We understand the difficulties of operating an optometry practice and the need for loans to support such an establishment.
Our job is to effectively provide the best financing products and options to you to operate your practice effectively. We offer a wide range of medical practice loans through our lenders’ marketplace that empowers our doctors and optometrist to move forward.
The 7 Best Business Optometry Practice Financing Options
Long-Term Small Business Loans for Optometry Practices
Long-Term business loans are always the most desirable as they offer the longest loan term 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 of operation and a significant amount of paperwork. Approval for medical loans such as this one can take up to a week.
- Optometry practice loan rates starting from 4%
- Loan term repayment schedule from 1 to 7 years
- Monthly payments
Business Lines of Credit for Optometrists
A business line of credit works like a credit card in that it is a revolving line of credit. This financing option 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.
- 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 for an Optometry Practice
Equipment is a must for the healthcare industry. The medical equipment and machinery needed to operate a 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 made based on the optometry practice owner’s personal credit and the business’s financial health.
- Simple 1-page application
- Limited financial paperwork
- Repayment terms from 1 to 5 years
- Monthly payments
Small Business Administration (SBA) Loans for Optometry Practices
An SBA loan is administered by the United States’ Small Business Administration agency and sets the guidelines that must be followed to ensure business loans 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 desirable 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 excellent terms and an interest rate that works in your favor. The SBA 7 (a) loan is the most popular with doctors.
Small Business Administration SBA 7 (a) Small Business Loan Program – When optometrists are looking for their first SBA loan, they often end up with an SBA 7(a) loan program. This type of loan is considered a general-purpose small business loan, giving business owners a lot of flexibility of use within an optometrist’s office.
SBA 7(a) loans are ideal for a wide variety of businesses and purposes, which is why it’s often the first type of SBA loan that an optometrist may seek. However, some optometry practices may not be a fit. An optometry practice can’t use SBA 7 (a) loans to pay delinquent taxes, buy out an optometry practice owner, or reimburse an optometry practice owner for arrears or expenses.
Several sub-programs within this category give borrowers more to work with when it comes to loan options. Here are some of the sub-programs that fall under the SBA 7(a) category.
- SBA Express (quick credit approval)
- SBA 7(a) loans (standard term loan)
- Veterans Advantage
- Export Working Capital
- Export Express
The interest rate for an SBA 7(a) loan is one of the most affordable you can find. Currently, the interest rate ranges from treasury index plus 1 to 2.5%. The maximum interest rates that lenders can offer are guaranteed by the SBA 7 (a) loan. Individual lenders offer rates based upon a borrower’s qualifications — while still being subject to the maximums provided by the SBA. Costs and fees for these programs are reasonable.
Small Business Administration SBA 504 – The SBA 504 Loan is a business term loan. SBA 504 is typically for significant capital needs like real estate transactions. The use of proceeds from SBA 504 Loans must be used for fixed assets such as construction, owner-occupied commercial property, or mixed-use real estate.
Small Business Administration SBA Paycheck Protection Program (PPP) – The Small Business Administration (SBA) has established this Program loan in response to COVID-19. This SBA-offered relief option provides small business loans to the medical business and doctors.
Merchant Cash Advance for your Optometry Practice
Merchant cash advances (also known as future receivable purchase and sales 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 the 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.
- 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
- Time in business only requires 6 months or more
- Lower credit score requirements
Business Credit Cards Optometry Practices
Business credit cards work similarly to personal credit cards, acting as a revolving line of credit with a limit, including a minimum monthly payment requirement typically lower than that of a 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.
- Can be used 24 hours a day, seven days a week
- No limitations on the use of funds
- Flexible monthly payments
- Principal & interest rates
- Low fees
Benefits of Obtaining Optometry Practice Financing
|Cash Flow/Working Capital||Operating an optometry practice is a complicated venture that has a lot of moving parts to it. Opening a new office or practice can be even more complex. There are a variety of issues that a doctor can face that can impact the cash flow of the practice, like staffing, receivables, and collections, pressure from large medical groups, and competition. Forgetting or failing to meet payroll is not an option, so it’s essential to have a credit facility in place to control the ups and downs of the optometry practice and stabilize funds with working capital through a variety of funding options|
|Software and Technology Upgrades||As innovations are always omnipresent, it’s crucial to have the credit facility available to acquire the necessary technology to keep up with best practices in patients management, treatment, record keeping, and other processes that an optometrist may have to manage.|
|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|
|Medical Equipment Purchases||New types of equipment are continuously 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 offer funding options that upgrade or improve patient care.|
The Bottom Line: Why Choose AdvancePoint Capital for Optometry Practice Financing
Experience in the Optometry Industry – We have been funding optometry practices for years.
Trust – Excellent reviews and feedback from our optometry practitioner or practice.
Loan Specialists – Experienced business funding specialists who know the ins and outs of the optometry industry
No cost, no commitment quotes.
Products – A Variety of Medical Practice Loan Products. We don’t just offer what we have; we deliver everything available in the marketplace every time.
Application Process – This streamlined application process is better than a bank loan, with credit approval in as little as one day for some products
AdvancePoint Capital specializes in providing optometry practice financing throughout the United States with practice solutions they need to grow and thrive. An optometrist and small business owners alike can benefit from alternative practice financing. Traditional bank loan options can encompass strict lender credit requirements and loan paperwork that slows down the process.
We believe that our marketplace of optometry practice loans can help your optometry practice get the cash it needs to manage commercial real estate needs, expansion, cash flow, payroll, mergers, and acquisitions — along with other operational needs. Whether your practice is a small business or an enterprise, you’ll need optometry practice financing and loan options that work for you when you need them most.
*AdvancePoint does not provide start-up financing or practice acquisition loans to optometrists.