In the United States, it is estimated that there is a current deficit in the number of physicians of nearly 22,000. Until 2030, this deficit is expected to grow six-fold to nearly 122,000. With demand far outstripping supply, now may be a great time to think about starting a medical practice.
Running a medical practice requires an enormous amount of effort dedicated to patient care. Many healthcare professionals who start practices also discover that medical practice financing is also a significant concern.
Luckily, there are plenty of options to consider regarding healthcare practice financing for new and existing medical practices.
Healthcare practice loans (also known as medical practice loans) are loans designed to provide funds to a practice to help it achieve its goals. When it comes to what lenders will review when considering your loan application, not only as a doctor is your credit score considered, but your medical speciality, the historical performance of an existing practice or the projected financial performance of a new practice are also taken into account. These funds are often utilized to obtain real estate, lease equipment, renovate facilities, or increase staff compensation.
There are many different types of medical practice loans, but the following are five of the most common options.
Small Business Administration Loans are typically received through a local bank and then guaranteed by the SBA to qualify for lower interest rates. These types of loans usually have strict guidelines and can involve a serious amount of red tape.
Unsecured Medical Practice Loans are typically gained through a private lender and are specifically designed for medical practice financing. These loans often come with higher borrowing limits when the borrower has excellent credit.
Equipment Financing is often used in place of a loan when the required capital will be used to purchase new equipment. These deals can be structured as equipment leases and are sometimes done directly through the supplier selling the equipment.
Term Loans for healthcare practice financing are structured as a cash loan with a fixed interest rate and shorter repayment terms. This can be an excellent option if a medical practice expects the funds they are borrowing to immediately impact future cash flow.
Unsecured Business Lines of Credit are closer to a high-limit credit card than a physical loan because the amount can be borrowed and repaid on a revolving basis. If you don’t have an immediate need for funds at the moment, this could be an excellent option to set up now for the future.
Owning and operating a healthcare practice requires you to make important decisions daily. You want your practice to be an inviting environment with the best people and equipment, but all of that requires up-front investment.
UFS can help you access various types of unsecured loans and lines of credit, including programs that let you borrow as much as $250k with 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.