Why You Should Skip the Bank When It Comes to a Medical Practice Loan
If you have a medical practice and it’s time to expand, then that means business is good. Which is great, right? We all want to be successful, and growth is a sure sign that things are going well. Unfortunately, with growth comes the headache of managing how to move forward, which means determining the best method to use.
Does it require hiring more resources? Do you need a bigger office? How do you handle the influx of patients during the winter season when the flu and colds are running rampant? These are all questions you want to address prior to seeking out a small business loan.
Whether you need more employees, more inventory, or more room, you want to ensure that you’ve identified and properly prepared for any gaps or problems that may arise. This means considering the pros and cons of a short-term business loan versus a loan from a traditional banking institution.
So What Next?
The most obvious option is to seek out a business loan, which typically means reaching out to the bank, filling out the paperwork, going through a credit check, waiting for everything to clear, then finally receiving your money. With a traditional bank, this entire process can take months.
The paperwork itself takes on average up to thirty-three hours to complete, which means you’ve effectively wasted a week of work getting it done. On top of that, the chances of you getting approved hover around 10%, and it will take at least a few weeks to find out whether or not you’re getting the loan.
Another problem might be that the doctor might have too much debt to qualify for a traditional loan. This is especially true for younger doctors who have only been practicing for a few years and are still under the burden of student loans. So where do you go from here?
One option you could pursue is an alternative loan from Quick Loans Direct. You can choose between a short-term loan, a line of credit, or a revenue advance if you have an immediate need for cash.
Short Term Loans
For example, let’s say you find the perfect office space, but you know another company has a serious interest in it as well. It would behoove you to move as quickly as possible, and going through a traditional bank is not going to be the answer.
Get a short-term loan to take care of the initial deposit or first month’s rent, and in some cases, you can get same day funding, so you don’t have to wonder whether or not the property is gone before you get the money you need.
Frequently these loans have a higher interest rate and shorter repayment options than a traditional bank, but they can be the perfect answer if you need some short-term financing. This doesn’t have to be just for office space. It could be for inventory, seasonal hiring, and a host of other business related expenses as well.
One nice perk of a short-term loan or revenue loan is that, more likely than not, these loans will have a smaller total cost for you or your practice than traditional bank loans will. A short-term loan might have a repayment plan of up to three years, whereas traditional banks could spread their loan out over ten years or longer.
Longer terms mean paying interest for a longer period of time, which in turn increases the total amount of money you are spending on the loan, which isn’t always ideal. You want to be able to pay your loan back quickly, with favorable terms, so you can get out of debt faster.
In addition to shorter approval and payment times, and shorter repayment terms, alternative short-term loans usually don’t require the same amount of time in business as traditional banks do. Most banks want you to have been in business for at least two years, while most short-term loan options are okay with only 12 months of verifiable income.
A revenue advance or merchant cash advance might also be a good option if you just need some quick money to cover items like vendor or payroll obligations. This will help you cover the day-to-day stuff while you’re waiting on payments from insurance or patients. This type of loan is perfect for covering any cash flow problems that arise in the short-term.
Having working capital readily available is great if you need the flexibility. It’s nice to have on hand if things are slow or you simply find your practice in a situation in which it needs cash in a hurry. In the end, you want to make sure you find the right short-term loan option for your medical practice.
Sure, there are risks to short-term loans or revenue advances, but they can also be a huge help to your business. What you want to do is make sure that it makes the most sense for your business. Every business is different, and what works for one may not be right for the other.
Whether your business is focused on optometry or you are a chiropractor, you want to ensure that your private practice has access to the working capital reserves it needs. It’s understandable that even the most successful medical practices may need capital in a hurry, and that’s why you can turn to Quick Loans Direct.
They have plenty of experience providing medical professionals and practices with the funds they need. Quick Loans Direct bases their decision-making on your business success, not on your personal credit information, which means you can get funds as soon as that very same day.
Take a moment to visit their site and see just how they can help you and your medical practice get the cash you need. It only takes a minute to look and applying and approval is fast. Your chances of getting approved are greater than with a traditional lender, so what are you waiting for?