Nearly anyone looking to start a business needs a start-up loan. Doctors are no different. When a doctor wants to open their practice, they can usually secure a pretty good line of financing thanks to their high earning power and respectable career outlook. Doctors often have access to the best business loans out there with the lowest interest rates. But by going through lenders other than the bank, doctors can get financing even faster than through traditional methods. Here is a look at a couple of different ways that doctors get loans to open their businesses.
Bank & Small Business Association Loans
Banks and the SBA offer the best long-term options for any small business loan. They usually have low rates and allow borrowers to pay back their loans over a more extended period. The only downside is that getting approved for a bank or SBA loan can take longer and require a lot of paperwork. Doctors willing to wait up to three months usually consider these options as they offer better long-term outcomes. But if they need funding sooner rather than later, it’s not uncommon for medical practitioners to seek financing elsewhere.
Alternative Business Loans
This type of financing is usually a short-term loan or a credit line giving doctors immediate access to capital. Compared to a standard bank or SBA loan, alternative business loans carry high interest rates and must be paid back sooner. This option is frequently taken by doctors fresh out of medical school who still have thousands of dollars of debt. Banks are often hesitant to offer loans to doctors who already have substantial financial obligations, so it can be harder for them to get financing.
The route that doctors take comes down to a few different things—their likelihood of receiving funding, how quickly they need financing, and over what period they want to pay it back.
If you’re a doctor looking to start a new practice, let Topfund Capital take the wheel for you. We can provide financing at a great rate today, so just give us a call.