Medical Practice Loans

February 11, 2020

 

 

Loans for Doctors Offices 

 

In the United States, there are 756,000 Physicians and Surgeons who currently practice medicine with a valid license. As more of the population ages, the growth for the medical industry is projected to be 7% over the next decade or so. This added demand for health care will see a rise in large and family practices. 

 

Along with standard and specialty practices such as chiropractors, dentists, plastic surgeons, and others. There has been a rise in alternative medicine practices that we have worked with and funded. With our experience in financing for the medical industry, we have found that many doctors who currently hold a practice or a looking to start one are confused and frustrated when it comes to securing financing.

 

With equipment advancing quickly and with the demand for faster and more accurate results, doctors face the constant need to update and upgrade their medical equipment. 

 

Reasons for Seeking Financing:

 

  • Working Capital

  • Asset Purchase such as equipment 

  • Debt Restructuring 

  • Starting a new practice

 

Loan Options for Doctors Offices 

 

There are a variety of lenders and funding programs that may be available to doctor's offices and private practices. Traditional lenders such as major banks offer favorable rates but are very picky about which practices they finance. It may not be enough to simply have a profitable business to secure financing. Alternative lenders usually cater to specific industries and are less restrictive when it comes to their approval guidelines. 

 

SBA Loans

 

The Small Business Administration’s financing programs are a great way for a medical professional to obtain bank rate medical practice financing for company’s without enough of credit history or lacking the cash-flow that a bank requires. The small business administration does not give the loan, rather agrees to cover a percentage of the traditional lender’s losses should the borrower default. 

 

Rates & Terms

 

- 5% to 12%

- 5 to 25-year terms

- 30 to 90 days funding period 

 

Documents needed 

 

  • Business tax returns

  • Business financial statements

  • A/R & A/P aging schedules

  • Schedule of liabilities

  • Personal tax returns

  • Personal financial statements

  • List of collateral

  • Personal guarantee

Term Loan

 

Rates & Terms

 

- 5% to 15%

- 5 to 7-year terms

- 5 to 7 day funding period 

- Monthly payments with no prepayment penalties 

 

Documents needed 

  • Personal tax returns

  • Personal financial statements

  • Pay Stubs

  • Personal guarantee

 

Line of Credit

 

Rates & Terms

 

- 5% to 15%

- Revolving line

- 5 to 7 day funding period 

- Monthly payments with no prepayment penalties 

- Only pay interest on the current balance 

 

Documents needed 

  • Personal tax returns

  • Personal financial statements

  • Pay Stubs

  • Personal guarantee

 

Revenue Financing 

 

Rates & Terms

 

- Factor Rates Starting at 1.19

- 6 to 18-month terms

- 1 to 2 day funding period 

 

Documents needed 

  • 6 Months Bank Statements

  • Personal Guarantee

     

     

     

     

     

     

     

     

     

 

 

Share on Facebook
Please reload

Recent Posts

February 11, 2020

Please reload

Archive
Please reload

501 W Broadway, Suite 800,

San Diego, CA 92101    info@trustartfinancial.com  |   888-787-7842

© 2020 TruStart Financial, INC.

Privacy Policy  |  Terms Of Service

  • White LinkedIn Icon
  • White Instagram Icon
  • Facebook - White Circle
  1. All loans are subject to credit approval.  

  2. TruStart can pre-approve you in hours for up to $500,000 when we are able to obtain your credit report and/or personal tax returns. Your funding consultant will guide you through the whole funding process.

  3. Loan forgiveness is available if conditions are met, but is not guaranteed.