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Healthcare Business Loans
Healthcare Finance: providing top-notch patient-centered care is the primary focus for many healthcare practices. Because of this, some may have missed the fact that the financial landscape has changed considerably over the last decade.
Previously, many traditional financing institutions such as banks offered extensions of credit to healthcare professionals without any hesitation. However, times have changed and today many banks view healthcare practices as small businesses. The problems with this mindset is that the amount of funding that banks have set aside for small businesses has been steadily decreasing. Additionally, the criteria for decision making has tightened up with new added restrictions and the timeframe from application to approval remains lengthy.
Healthcare Financing: Traditional Lending Institutions Vs. Alternative Lending Sources
Perks of financing with a conventional bank are longer repayment terms up to 10 years and fixed interest rates. However, the application process is longer and involves tedious paperwork. Commonly, most traditional lenders reject loans to healthcare professionals as well.
However, the process of applying for healthcare business loans from an alternative lending source is quick, requiring only a few minutes of your time and just a few pieces of documentation are required.
Here at GoKapital, our priority is helping you understand small business loans.
You can know within minutes if your business qualifies for up to 50 different lending programs and within days, your healthcare business can receive its much-needed working capital.
Your Healthcare Practice Is a Business
It’s no secret that the cash flow of healthcare practices, whether it be medical, dental or veterinarian, is unpredictable and can be inconsistent. It can take weeks or months for your patients or insurers to submit payment, which is beyond your control. The timeframe between patient treatment and receipt of payment is referred to as your business cycle. And, the longer this cycle, the harder it is to manage your cash. With limited cash, can your business run efficiently and deal with unexpected emergencies, such as equipment failure?
Borrowing Can Improve the Strength of Your Business
Each healthcare practice is unique, making it of significant importance that you choose the right loan type and the right lender to avoid borrowing in the wrong way. Unfortunately, it is true that many people in private practice aren’t aware what types of small business loans are available, or which ones are the best for them. You should think of healthcare business loans as tools, meaning each one has its intended use. So, knowing your options is key and based on your business goal may include:
- Building purchases
- Working capital to ease fluctuations in cash flow
- Reduce or consolidate business debt
- Purchase business equipment
- Marketing/growing your business
- Adding additional staff
- Business acquisition
- Remodeling of your healthcare business
- Building of a new facility
- Medical office financing
- Healthcare practice financing
At GoKapital, our lending professionals know the ins and outs of healthcare practice financing and will work by your side to determine which loan product is best to fund your needs. You might choose:
- Merchant cash advance
- Short term business loans
- Business loans for women
- Invoice factoring
- Unsecured business loan
- Equipment financing
- Revenue based loan
- Commercial Real Estate
- Residential Loans
- Small business loans
Your business will also have the benefit of unrestricted capital use. Your funds can be used for anything from payroll to marketing to inventory etc.
Healthcare Finance: When Is the Best Time to Borrow?
Those outside the healthcare industry may not think healthcare businesses have busy or slow times of the year. After all, everyone needs care all year round, right?
In actuality, there are certain types of healthcare practitioners and doctors whose patients seem to have a certain time of year where they are trying to squeeze in their routine visits. This rush of new and regular patient visits for dentists and doctors alike seems to happen in August because of the back-to-school rush.
August is the time of year that parents are trying to get their children seen before school starts and it almost seems chaotic as everyone is trying to get back on track after summer vacation.
Unfortunately, the August rush can put a strain on your healthcare business. You may need to hire additional temporary help, update your equipment, stock up on inventory etc. to keep your office running smoothly.
With that said, one of the best times to start your small business loan search is before this big rush in August and September. A business loan can provide you with the necessary working capital to:
- Cover any business-related expenses
- Secure financing for inventory do to an increased patient influx
- Pursue equipment financing
- Secure funding to cover your growing payroll for temporary staff
Additionally, any time you are looking to grow your business is an appropriate time to find the right loan and lender. Growth equals success, and unfortunately is unlikely to occur without an investment.
In conclusion, one thing is for sure, owning and running a healthcare-related business has never been such a challenge. Your focus is on delivering the highest quality of care while dealing with slower insurance reimbursements, mandatory equipment and technology upgrades and increased regulation. You deserve a lender that knows these challenges you face and can provide healthcare practice financing and medical office financing that is tailored to meet your specific needs.
At GoKapital, our financing programs are specifically designed to meet your unique needs and fit into your demanding schedule. Our loan programs are flexible and focused on speed and convenience to make your lending experience as seamless as possible.