08 Jun SMALL BUSINESS LOANS FOR MEDICAL PRACTICES

At some point, your medical practice will need to borrow money. That’s perfectly normal for every small business. Here at Business Funding Pro (BFP), our job is helping you understand small business loans. That way, you can plan strategically and choose wisely.

Trying to untangle the ins and outs of small business loans can feel like another trip through medical school. Lots of details. Time-consuming research. Steep learning curve. You have your hands full seeing patients and managing your medical practice. But small business loans are a necessary management tool.

YOUR MEDICAL PRACTICE IS A BUSINESS

You studied and trained for many years. You chose your specific branch of medicine because you want to help people or pets. But in order to do that, you have to operate your practice like a business. The nuts and bolts of small business financing – things like managing cash flow – are just as important as having the latest equipment and a trustworthy, comforting rapport with patients.

Medical practice cash flow can be inconsistent. You can’t control when patients or insurers pay, and it often takes weeks or months. The longer your business cycle the tougher it is to manage your cash. And the less cash you have on hand to pay your bills or deal with emergencies.

Even physicians in practice for years have managed to avoid creating a strategic plan. Medical Economics says, “Without a formal process to identify your mission, values, goals, projects, timing, barriers, opportunities, and strategies, you are likely to miss good opportunities and make serious and expensive mistakes.

• Establish clear direction
• Encourage collaborative thinking
• Set priorities
• Boost financial performance
• Improve patient care quality

BORROWING CAN MAKE YOUR PRACTICE STRONGER

Small business loans are like a timely vitamin supplement. The key is choosing the right medication and the right dosage – in this case, the right type of loan and the right lender. All too often, medical professionals know they need a business loan. But they borrow in the wrong way. When that happens, your practice doesn’t benefit the way you intended. I don’t want that to happen to you.

I talk with a lot of women and men in private practice. Many of them don’t know what types of small business loans exist. Or what could help them now. So you need to know your options. That might be:

• Working capital to smooth cash flow fluctuations
• Pay down debt
• Purchase medical or office equipment
• Remodel your medical or surgical facility
• Purchase a building
• Build a clinic from the ground up
• Bridge the waiting period between major loan approval and funding
• Market your practice
• Bring on another physician
• Buy out another practice, or a partner

To fund these needs, you might choose:

• Merchant cash advance
• Business line of credit
• Short-term business loans
• SBA 504 loans
• SBA 7(a) loans

You may already have some of these in place. A good rule of thumb is to use short-term financing for short-term needs. Save long-term borrowing for major, long-term needs.

Accounts receivable loans can be ideal to improve cash flow. You get your money quickly. And you can say goodbye to collections. SBA loans can be a good choice when you need to borrow larger sums of money. SBA loans are notoriously slow, though, because you have to go through a bank. But I have good news – your practice may be eligible for an SBA Marketplace loan. This process is much faster. You can be funded within a week. Our team at Business Funding Pro can explain the details, determine your eligibility and guide you through the process.
THINK OF BFP AS A FINANCIAL HEALTH CARE PROVIDER

As I’ve pointed out before, there are two leading causes of small business failure. Insufficient capital and poor cash flow management. You must have someone to guide the financial side of your practice. You may have a skilled business manager, but you should think of BFP as part of your team, too.

Call us when you need a small business loan for your medical practice to smooth cash flow and when you need a major loan to expand your practice.