As a healthcare professional who operates a business, we know you have a lot on your plate. From dealing with worried patients to filing insurance documentation, sometimes the daily grind makes you lose sight of growing your practice.
That’s where business loans for healthcare professionals can come in handy. Medical business financing can help your business grow and utilize the new technology and developments in your medical field. Whether you’re just starting in the industry or you’re expanding to another location, healthcare business loans can help you achieve the practice of your dreams.
Growing Your Practice with Medical Business Financing
Although everyone needs healthcare, you can’t grow your business by relying on your reputation alone. One of the best uses for business loans for healthcare providers is marketing and investment in new technologies.
By marketing your services to the right groups, you can expand your business at a much higher rate. For example, an orthodontist should target groups with a larger proportion of children since they tend to be the largest market for braces and other orthodontic procedures.
Your medical business can utilize healthcare business loans for marketing, both in application and research. Medical marketing is known to increase foot traffic, so why aren’t you investing in a tool that will increase your revenue?
You can also attract new patients by investing in technology. Patients want to see their doctors using tools and methods from the 21st-century rather than outdated procedures. By investing in new technologies, you can attract patients who would have otherwise visited a different medical professional.
Top 3 Financing Options for Healthcare Providers
The healthcare field needs adequate access to capital to improve the quality of care and give patients access to the best technology in the field. Here are the three best options for healthcare business loans.
Online Medical Practice Loans
Online lenders like ROK Financial offer their customers the best of both worlds—ease of access and secure financial backing. ROK gives their customers access to funds within five days, although the process can be as fast as one day.
ROK also offers its customers medical business financing ranging from $10,000 to $5 million. With that range of financing options, your medical business will have access to the funds it needs to thrive. ROK offers loans on 1 to 5-year terms.
One of the best features of ROK’s business loans for healthcare professionals is its credit rating system. Unlike most lenders, ROK doesn’t have a minimum FICO score. That means even if your credit has fallen, you’ll still have access to credit.
SBA Loan Options for Medical Professionals
SBA loans are small business loans issued by a private institution, like a bank or credit union, but the federal government guarantees them. SBA loans are an option for medical professionals because they offer large amounts with relatively low-interest rates.
SBA loans, and the most popular SBA 7(a) loans, are highly competitive. You must have been operating your business for more than two years. You must meet stringent credit requirements, including having a credit score above 640, although we recommend only applying if your score is over 680. You’ll also need to prove your operating revenues and how much you invested in the business.
Many business owners covet SBA loans for medical practices because of their large amounts and low-interest rates. If you don’t meet the application requirements, you won’t be approved for a loan. For business owners, this can be a frustrating experience, which is why online lenders can be a better option.
Medical Practice Loans from Banks
If you have a record of repaying your loans on time and without any issues, bank loans may be the right option for your medical business financing. The eligibility requirements for bank loans vary depending on the lending institution.
Some banks offer special financing rates and options to medical businesses if you can prove consistent revenues. The main reason why medical professionals are hesitant to get bank loans is because of their high-interest rates. The federal government backs an SBA loan for healthcare providers, which means lending institutions take less risk. When a bank gives out a loan, they don’t have that protection.
Without that protection, banks are wary of lending. That means their requirements are stringent, and their rates are much higher than SBA loans or online lenders. Bank loans are an option for those with good credit and high revenues. Otherwise, we recommend looking into other options.
How to Apply for Medical Business Financing
Applying for medical business financing depends on the type of loan. Here are the steps for each of the medical business loan types above.
SBA loans pair you with a lender, but the federal government backs up part of that loan, so the lender takes less risk. For this guide, we’ll be outlining how to apply for the SBA 7(a) loan, which is the most popular among business loans for doctors. First, you must:
- Fill out the SBA loan application
- Submit to a background, credit, and financial check
- Upload business financial statements
- Submit proof of ownership, business license, and income tax returns
- Submit loan application history
- Other documents including lease information, resumes, business history, etc.
After you submit all the documents, SBA officials will review your loan application. If it meets the requirements, they will send your application to verified lenders who will contact you if they want to offer your business a loan.
The application process for bank loans depends on the individual bank. Almost all banks require you to submit personal credit checks and business financial checks. Usually, this entails giving them copies of your financial statements as well as your loan application history. To apply at a bank, you can either do so in person or online if your bank has that option. However, banks guidelines tend to be much more strict than online/alternative lenders.
To secure an online loan through a retailer like ROK Financial, all you need to do is complete a quick 1 minute online application. And speak with a Business Financing Advisor to discuss your situation and what you're looking to accomplish.
After ROK suggests lenders to you, you can choose among the various lenders until you find the medical business loan rate that suits your needs. Once you supply the information the lender needs, you’ll have access to your funds.
About the Author, Madison Taylor
Madison Taylor is the Brand Ambassador at ROK Financial. She is responsible for raising brand awareness and business relationships with business owners across the country. Madison loves that she plays a small role in getting Business Back To Business Through Simple Business Financing and looks forward to hearing what you think about the blogs she creates! Madison has been working in the financial space for six years, and loves it! When she is not at work, you will find her at home learning a new recipe to test out on her family or going on new adventures with her friends.