Doctors who have managed to setup their own practice can normally qualify for most medical practice loans because of their excellent earning capabilities, high net worth and stable revenue. There are many lenders willing to provide doctors medical practice loans with minimal paperwork. The loan amount is also disbursed fairly quickly as compared to other types of loans.
Being a doctor is one of the noblest professions and many financers thoroughly understand this. This is also one of the reasons why doctors generally have no trouble obtaining loans and are provided with a plethora of financing options. Doctors can leverage their earning capabilities to negotiate with lenders and generally have the upper hand. As a doctor, you have the freedom to be choosy regarding your medical practice loan deal. Here are the two main financing options available to doctors:
Business Loans for Doctors
This is the best long-term financing solution that is provided by many traditional lenders. If you’re seeking low interest rates with an extended repayment period, then this is the best medical practice loan for you. No wonder this is considered by many as one of the best business loan for doctors. However, do keep in mind that the application process will take more time as compared to that of a personal loan. One of the reasons for this is the extensive documentation process and its subsequent verification which takes up a lot of time.
The traditional loan option is perfect for doctors who are willing to wait for 120 days or more to get funded. This long-term loan is perfect for financing your new private practice and for purchasing real estate or medical equipment. You can expect the loan repayment period to be between 7-10 years.
Another avenue for fulfilling your immediate medical practice needs is applying for an alternative loan – typically a short-term line of credit. These loans have a shorter repayment period and come with high interest rates. They can service your short-term financial needs and cover inventory purchase costs or pay for marketing. It’s important to note that doctors with existing high-levels of debt will not qualify for traditional loans, thus alternative loans are their only option.
Alternative loans are perfect for young doctors who have just finished their education and already have an education debt running parallelly. This group needs short-term financial respite to establish themselves in the medical field and alternative medical practice loans are the perfect starter. Being a short-term financing option, you can expect the loan amount to be significantly lesser than the sum provided by traditional loans. The repayment tenure can range between 3 months to 3 years, depending on your agreement with the lender.
Why Business Loans for Doctors Are Right for You
Waiting for payments from your patients can interrupt the cash flow and lead to a short-term financial crunch. This problem is further compounded by bounced checks and payment refusals from insurance companies. Obtaining financing at the right time will help you regulate the cash flow and provide financial relief when it’s needed the most. Applying for a medical practice loan will provide easy access to capital which previously seemed impossible.
If you’re planning on acquiring a competing medical practice, then you will probably need a lot of money. In such a scenario, applying for a traditional medical loan is your best bet. Timely financing will be needed for capitalising on this lucrative opportunity and thanks to the wide array of financing options available in the market, your dream can now be fulfilled.
So, if you are looking to apply for a Bajaj Finserv Business loan for Doctors to kick start your medical practice, apply one with Finserv MARKETS today and avail a host of benefits that will help you maximize your investment. What’s more? The entire process is online, quick, easy and completely hassle-free. So why wait? Apply for a business loan up to Rs 15 Lakhs with us, today!
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