6 Best Loan Options for Healthcare Practices
If you are a doctor, specialist or own a medical practice and are in need of financing to expand, purchase or grow your business, then you’ll find that there are a lot of options when it comes to financing. While the amount can be intimidating, here are six of the best loan options for health care financing.
You can get some financing under very specific terms. For instance, if you need to update your equipment, buy new tools or anything of that sort, then you may qualify for equipment financing. These loans are limited, however, to specific purchases.
Business Lines of Credit
Business lines of credit function much like a business credit card. A lender approves you for a set amount and you pay interest on the funds that you borrow. The benefit of this type of health care financing is that you access the funds quickly.
Short-term loans tend to have higher interest rates than other loans. They also have a shorter repayment term. The good thing about these types of loans, however, is that they give you fast financing. For some businesses, this is more than worth the cost.
Non-Bank Term Loans
This type of term loan is offered to businesses through alternative lenders. This may be an online lender or someone who serves the medical community solely. What makes this different from a bank loan is usually the access and the rates. The lending requirements tend to be more flexible and accessible than a traditional bank. This type of loan offers you a lump sum of money in which you pay off in installments.
Medical Practice Business Loans
Many borrowers like to use banks when it comes to health care financing. Most know how banks work and you know what to expect from bank financing. When it comes to medical financing, many banks offer special lending that is tailored towards healthcare businesses. This can go for doctors, dentists, veterinarians and even optometrists.
SBA 7(a) Loans
Often, SBA loans are considered best for small businesses. Often, these loans have flexibility and great terms. They have the lowest interest rates and the longest repayment terms. Of course, this also means that they are competitive. These loans have high capital amounts available and low interest rates.
When it comes to health care financing, there are a lot of options available to your practice. Speaking with a lender can help you decide which is best for you.