(866) 458-4777
Paul Kendall
When it comes to financing your medical practice, there is no one-size-fits-all solution. Almost every medical practice financing company will try to tell you why they’re the best option for you, but they’ll also say the same thing to every person who calls them or clicks on their advertisements. But it’s a little crazy to think that one financier has one solution that fits every situation.
Realistically, your business situation is unique, so it’s important to consider all of the options before jumping into the first offer you get.
Available Medical Practice Financing Options
There are many different types of medical practice financing options available, but only a few are considered common or even recommended. Note that each one has its own set of pros and cons that will cater to different financial situations.
- Bank Loans
- Startup Loans
- Medical Equipment Leasing
- Low Credit Score Financing
Which Medical Practice Financing Options Is Best For Me?
Answering that question can be a little tricky. Any type of financing company that tells you what the best medical practice loan or financing option is for you before you even tell them anything about your business is probably just trying to get your money.
A company that is upfront about pricing and transparent about what’s good for your company is usually a great company to start working with, because they will be willing to tell you if their products are truly going to help your business the most.
Bank Loans for Medical Practices
Generally speaking, getting a loan from a bank will be your best, most efficient option. This is also assuming that you have a near-perfect credit score, have been in business for awhile, and don’t mind waiting months at a time to get an approval or denial. In other words, if you can actually qualify for a bank loan, you probably don’t need the loan as badly as other companies might. I've seen terms up to 15 years.
Medical Practice Startup Loans
Getting a loan from a bank is not always feasible for most companies like yours, especially if you’re just starting out. However, as a startup, getting enough funding is necessary to opening your doors in the first place. This means that you won’t have a lot of business history to get the best rates, regardless of what your credit score is. Generally can get terms up to 10 years.
However, you can still get fairly decent repayment rates on your start up medical practice loans if you have at least “OK” credit.
Medical Equipment Leasing
Truthfully, a lot of medical equipment can be acquired directly through a manufacturer of medical equipment. They may provide financing options that have no additional payments and fees beyond the purchase of the equipment, even if you have some kind of equipment financing plan. However, There are great lenders like Trust Capital that have very competitive rates starting at 5%. Generally will offer fixed monthly payment terms up to 7 years.
Low Credit Medical Practice Financing Programs
Another type of financing is available for companies and startups that don’t have great credit. Financiers may still be willing to provide you with the funding you need, but it will often come at a price they aren’t willing to admit upfront. The interest rates and overall monthly payment may be enough for you to reconsider until you have a higher credit score. I've seen terms up to 5 years.
If you need to get the money to keep your business afloat or are determined to start your business as soon as possible, then even an “expensive” financing program is still the best option for you - because it means you can continue doing business or start generating profits earlier.
All in all, the best medical practice financing option is going to vary based on what you need and the current state of your business and personal financials.
Having the most reliable and upgraded medical equipment for your business, acquired with affordable and flexible monthly payments, can have a lot of benefits for your business. With medical equipment leasing you get section 179 tax benefits. With the passage and signing into law of H.R.1, aka, The Tax Cuts and Jobs Act, the deduction limit for Section 179 increases to $1,000,000 for 2018 and beyond. The limit on equipment purchases likewise has increased to $2.5 million.
Click here for a medical equipment leasing calculator to calculate how much your medical equipment leasing payments could be and how much medical equipment you can afford to buy based on your monthly budget.
Ready to Apply for a Medical Practice Loan? Feel free to reach Trust Capital and speak with a medical equipment leasing specialist at 866-458-4777
