Top 3 Best Medical Practice Loans
Physicians starting their own practice can take advantage of a number of financial options specifically targeting the medical industry. Medical loans often have better rates than standard loans, because they are targeting physicians who, generally, have exceptional credit. They also specifically are designed for the types of expenses physicians tend to have, including the need for new medical equipment. These are the 3 most popular loan options for those in the medical field.
Short-term loans can be useful because they are incredibly fast and easy to obtain. They are perfect for physicians who need very fast financial assistance, particularly for some sort of emergency. They can also be an easy way to pay off debt quickly, as long as you are sure that you have the necessary income to support paying off these loans. The downsides of short-term loans include higher-than-average interest rates and much shorter repayment terms. Many people struggle to repay short-term loans in the time frame allotted, so they can be a riskier option.
An SBA loan is an excellent option for a healthcare provider because it is one of the most well-rounded types of loans. It is generally very safe, and it offers pretty competitive rates. SBA loans are offered through the Small Business Association, and they guarantee you 85% of the loan, so you can rest knowing your money is safe. Doctors are often great candidates for SBA loans because they have good credit and a strong borrowing history, due to the large expense of medical school. However, SBA loans are not a good option for those seeking quick financing, because they take many weeks of back-and-forth paperwork to process.
Traditional Bank Loans
Traditional back loans can be an appealing option for health care providers, especially if you use a bank with programs specifically designed for those in the medical industry. Banks that offer those types of programs include Wells Fargo, U.S. Bank, among many others. Stipulations for applying for traditional bank loans include a good credit score, as well as a history with that specific bank. It is for that reason that many health care providers choose another option because their bank likely does not offer programs designed for them.
The three options described are the most popular types of loans for those in the medical industry. Choosing any of these three options for your medical practice will help you obtain the money you need. However, there are many other options when it comes to financing a medical practice, and you are encouraged to do more research to choose the option that is right for you.