Medical Office Funding Using Alternative Lenders

by | Jun 6, 2013 | Uncategorized

Listen Now

To expand or buy equipment for a medical office can be very costly. Cost of equipment alone can be hundreds of thousands of dollars. Medical office funding from alternative lenders is an option doctors have instead of going to their bank or credit union. Although more costly than a bank loan, financing via an alternative lender is a lot simpler and faster. Much less paper work is involved, much fast approvals, and much faster funding. In addition, should a situation arise during the term of an alternative loan where more capital is needed often the lender (once 50% is paid off) will issue more money. If the borrower proves themselves worthy by making timely payments without any missed payments it puts them in a good light with the lenders.

Medical office funding through alternative lenders does cost more. Some reasons besides speed of funding and ease of funding to use an alternative lender is if you have bad credit, no collateral, not in operation long enough, or not needing enough of a loan to make it worthwhile for the bank. Yes, that’s correct. If you are borrowing less than $50,000 for example a bank may not make any money on the transaction and will “find” a reason to decline it. What if you were under the gun to move offices and couldn’t wait for a bank to process a loan request and fund it? Banks can take up to 60 days to get you money if you didn’t already have a line of credit with them. Avoiding all this is worth something and therefore professionals, like medical doctors, dentists, chiropractors, podiatrists, etc…will pay to get financing through an alternative lending source.

Medical office funding rates can run from 15% to 40%. The terms of these loans are generally 3-18 months. Usually medical office funding is a less risky loan and they will get a rate of around 20% over 12-18 months. If you’re a doctor looking to expand, buy equipment, or? and need medical office funding please let Small Business Funding help you achieve your goal. To apply click here.