We know that managing unique cash flow patterns and balancing them with the long-term goals of a medical practice can be a challenge. A medical practice loan reduces the friction in your path and offers convenience. You may think that medical practice financing is not just for newly qualified medical professionals fresh out of medical school – but it’s not so. Established practitioners may require outside funding for reasons like an expansion of the practice to a new location.

Working Capital For Your Practice

Working capital helps in managing the daily expenses of your business and ensuring a streamlined patient experience. These include rent for the clinic, hiring medical and administrative staff, and more.

Advertising Expenses

You don’t want your practice to get overlooked in a competitive market. Growing your medical practice requires a promotional campaign through advertisements and other methods like search engine optimization.

Buying Medical Supplies

Medical supplies are critical for delivering quality patient care. A medical practice loan will help you to stock up on medical supplies and basic surgical instruments required to treat patients. It is important to stay prepared for any unexpected medical crises that may require additional medicines and other supplies like personal protective equipment. The stock of supplies tends to add up quickly and you’ll need the tools to maintain an accurate inventory as well.

Buying Equipment

To ensure competitiveness, you need top-notch patient care equipment. For buying state-of-the-art medical equipment, access to sufficient capital is a must. Beyond that, you’ll need basic equipment like examination tables, weight scales, privacy screens, specialized lighting, electronic health record systems, refrigerators, etc. Other than diagnostic tools,  high-end computer equipment, printers, medical billing software, and other peripherals will be needed to manage the business.

Renovating Your Practice

When a patient walks into your office, your first impression matters. An outdated office may lead patients to think twice about the care they are about to receive. In addition to simple facelifts, you can update your practice to be more welcoming, handicap accessible, and equipped to serve patients.

Expanding Operations

Once your patient base starts growing, it is time to expand. You’ll need to stretch your operations by adding more professionals to your team. For that, upgrading the existing facility by refurbishing and adding more equipment will be necessary. A medical practice loan will allow you to ensure the best experience for new and returning patients and help your business reach its true potential.

How Medical Practice Loans Work

Unlike conventional business loans, physician practice loans are designed to cater to the needs of medical practitioners. Generally, these loans have fewer restrictions than conventional business loans.

Types of Medical Practice Loans

1. Small Business Loans

In this form of loan, a bank provides a lump sum of cash that needs to be paid back in a given time period. Credit approval for such a loan can be harder and offering a lender collateral can increase your chances. You may use a real estate asset as collateral and it may help in lowering the interest rates as well. Some lenders may ask for a personal guarantee to avoid defaults. 

2. Alternative Loans from Energize Colorado

We offer robust financing solutions to medical practitioners in Colorado who are starting up, expanding, or buying into another practice. Our loans range from $5,000 to $150,000 and are designed for your practice needs. We offer competitive loan interest rates. You can benefit from our flexible terms and streamlined loan approval process. Our loan structure looks beyond credit scores and comes with reduced collateral requirements depending on your growth potential.

3. SBA Loans

These loans are backed by the U.S. Small Business Administration (SBA) and are ideal for practitioners who are unable to meet the requirements for a bank loan. In case you default, the SBA guarantees to cover a portion of the loan. Among the multiple SBA loan options. the SBA 7(a) is the primary loan program and offers excellent flexibility, as well as some of the lowest interest rates in the market. However, since SBA loans are coveted, the qualification process is competitive. In addition, the application process takes time and the timelines for gaining access to capital are on the longer side. 

4. Equipment Financing

This loan is specifically formatted for the purchase of high-value medical equipment and other diagnostic tools. Since the equipment itself acts as the collateral, you do not need any personal or business assets as a guarantee. Nevertheless, you’ll lose the equipment if you default on the loan. The time period of repayment is matched to the lifespan of the equipment.

5. Business Lines of Credit

This loan helps in managing sudden cash flow gaps as well as daily operations and payroll. A fixed amount of money is decided as the expenditure limit and the interest is only charged on the amount withdrawn. This means that you have flexible and ready-to-use access to funds. Having a line of credit available also ensures that you can spend the cash on any aspect of your business without specific restrictions.

6. Working Capital Advances

This is a financing tool that works great for medical practitioners looking to start a new practice. They can be used for real estate purchases, managing everyday cash flow, and other operational expenses. While these loans are processed quickly, you might need to pledge some collateral to reduce the lender’s risk.