If you plan to launch a medical practice, be prepared to shell out a small fortune to open your doors and run your operation until you have enough patients to sustain the business. Fortunately, a physician business loan can provide the working capital you need to cover any financial shortfalls.
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Loan Purposes
You can use a small business loan to cover the various costs associated with opening a new medical facility, such as:
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Office mortgage or rent (or purchasing a building outright)
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Payroll
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Advertising and marketing
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Medical and office supplies
Pro Tip: If you’re unsure if you want to start a business from scratch, a loan could help you acquire an existing practice.
Loan Types
Many types of small business loans are available, but the best fit for you will depend on your requirements and goals. For example, if you want to borrow up to $5 million, enjoy a low, fixed interest rate, and have up to 25 years to pay off the debt, an SBA7(a) loan from the Small Business Administration may be right for you.
However, an SBA7(a) loan has a lengthy and complicated application process, making it a potentially poor choice if you need the money fast. In that case, a short-term loan may be a better bet, despite it likely having a higher interest rate and lower loan amount.
Pro Tip: Regardless of what type of loan you choose, you may also want to consider getting a business line of credit. That way, additional funds are available to cover ongoing expenses or costs you didn’t anticipate when you launched.
How to Get a Loan
You can get the capital you need by following these steps:
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Determine how much to borrow.
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Evaluate your loan options, and choose the best financial product for your business.
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Create a business plan, and gather all of your financial documents.
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Shop around for the best possible deal.
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Apply for and secure your funding.
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Remember: While starting your entrepreneurial journey in debt might be scary, taking that risk may be necessary to realize your dream. Plus, if you’ve done your due diligence and have a sound repayment strategy, you’ll likely be operating in the black sooner than you think.
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This article originally appeared on GOBankingRates.com: Doctors and Healthcare Providers: How Small Business Loans Can Help You Meet Your Financial Needs
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