Owning and operating your own medical practice certainly involves a lot, but finding funding for that practice doesn’t have to be all that complicated. In fact, there are a variety of financing options to consider that specialize in loans for physicians.
When you are ready to start or invest in expanding some aspect of your medical practice, there are three primary options to consider.
If you have your own medical practice, you’ll be needing a lot of different equipment in order to best serve and treat your patients. All this equipment can get expensive quickly and when looking at the various loans for physicians that are available, equipment financing loan stick out as the best way to afford everything your practice will need. With equipment financing you won’t have to pay the full cost for all the equipment you need up front and they’re easier to qualify for than many term loans.
Equipment financing is great for large, costly equipment purchases like MRI machines because the equipment is used as collateral for the loan itself. This means the lender is taking a smaller risk and you will rarely have to use any personal property as collateral or even submit a down payment.
Obviously, equipment loans have a very limited purpose, but they are amazing options for that purpose considering how easy they are to qualify for and the collateralized nature of the loan.
Another common option for physicians looking for funding is setting up a line of credit with a bank or credit union. The big advantage here is that once a line of credit is established, those funds will be available as long as the account is kept open.
In fact, many medical practice owners use lines of credit in order to bridge cash flow in between the delivery of patient care and the reimbursement they receive from insurance companies. It’s also the easiest to obtain for practices that already have established patients, billing, and collections in place.
Lines of credit also offer flexible repayment options, which make them ideal for anyone willing to put in the time to get one open and renew it regularly.
Generally referred to as a small business loan, the SBA (7a) is the most popular of all the different SBA loans. While not specific to the medical field, it’s still one of the best ways for your medical practice to get the financial assistance it needs. With use-case flexibility and great terms, an SBA loan can give you a large amount of capital with lower interest rates and longer repayment terms. It can be used for anything you need – equipment, operating expenses, vendors, office space, et cetera – so you’re equipped with cash to handle any issues that may arise in your practice.
The only disadvantage of this loan is the time it takes to apply and get approved. The SBA (7a) is highly sought after and requires a strong credit background, steady finances, and four years of business history. With these requirements, doctors and their established medical practices make for very strong candidates, but the amount of paperwork and red tape can make the process time-consuming. Thus, it’s not a great option for those who need access to funds quickly, or for those just starting out.
Unsecured Funding for Physicians & Medical Practices
In addition to equipment financing loans, lines of credit, and SBA loans, physicians also have access to unsecured funding options like unsecured loans through companies like UFS. In most cases, these loans for physicians and medical practices offer a fast and easy approval process with extremely competitive rates. And medical professionals can typically qualify for preferred rates and terms.
UFS can help you explore a wide range of unsecured loans and lines of credit for medical practices, giving you access to as much as $450,000 at interest rates that start under 6%. Apply for an unsecured medical practice loan in seconds with UFS today to benefit from our professional expertise in non-collateralized lending.