Where to Get Medical Practice Financing for Doctors
Doctors usually have plenty of financing options when they’re looking for money to fund their practice.
This is due to the medical field being a safe bet for lenders and the fact that doctors are likely to make enough money to cover any potential debt payments. This means physicians can be picky in finding a working capital loan or other financing that fits their exact needs.
The two primary types of medical practice loans are traditional bank or SBA business loans or alternative business loans.
1. Traditional Bank or SBA Business Loans for Doctors
The best long-term financing option will generally be a loan from your traditional bank or an SBA loan through a traditional lender. These financing options typically offer the lowest rates and longest repayment terms available. They also can take longer to fund and require a lot more documentation than alternative loan options.
These traditional medical practice loans are a good option for doctors who can wait for 30 to 90 days or more to get funded, and who are looking for a long-term financing solution. This makes them great if you’re buying into a private practice or if you’re financing a brand-new practice and need to buy real estate or expensive equipment.
SBA loans are the most readily available traditional loan option for doctors looking to start or buy a practice.
2. Alternative Business Financing for Doctors
Another option for medical practice financing is to get an alternative business loan, which is a short-term loan or line of credit used for immediate cash flow needs. These loans typically have higher interest rates and shorter repayment terms. This makes them a good fit for short-term financing needs, like replacing inventory or paying for marketing efforts.
Doctors with a significant amount of debt may not qualify for SBA loans, possibly making these alternative loans their only option. This is especially important to physicians looking to start a practice out of school because 83% of doctors have more than $100,000 in medical school loans. That amount of debt could make it more difficult to qualify for an SBA loan or a traditional bank loan.
If you only need to finance a short-term solution, then these loans will probably have a smaller total cost of capital than SBA loans. Alternative financing options are typically extended up to 18 months, while SBA loans could be spread out over 10 years. Making that many more interest payments increase your total cost of capital of the loan and can reduce the amount of money left over to invest in the business.
Funding Speed for Medical Practice Loans
The funding speed is most important if you have an immediate need, like a cash flow problem or if an important piece of equipment breaks. Alternative loans will fund much faster than SBA loans. Since there are many alternative loan providers out there with varying rates and terms, we’ll keep it simple.
LendrzHub Funding Speed
LendrzHub can typically get you funded in one to two business days. If you need the funds for something immediate, like purchasing new scopes or replenishing inventory, fast business financing from LendrzHub could be a good choice for your medical practice.
LendrzHub Application Process
Applying with EASY-Apply® by LendrzHub requires some basic personal and business information, which is submitted entirely online. LendrzHub then analyzes your business cash flow after uploading your most recent bank statements for review.
If convenience is important to you, LendrzHub can be a good choice to get medical practice financing. LendrzHub can find financing up to $500,000 for your medical practice without you having to go through the headaches that an SBA loan requires. Your basic personal and business information, including bank statements, is enough to get you approved.