The 4 Best Loan Options for Doctors & Medical Practices
Let’s look at the best financing options for health care professionals. When you apply for a loan through Clarify, your dedicated financial adviser will guide you through the process. Our goal is to provide funding that fits the specific needs of your practice.
1. Term Loans for Doctors
When you think of business loans, you likely think of a term loan. A long or short-term loan is structured like traditional financing from a bank. You borrow a specific amount of capital at a specified APR and repayment terms. The duration of the loan term can be flexible based on your cash flow needs.
Why Choose a Term Loan for a Medical Practice:
- Fast access to capital
- Approval and funding takes 24 to 48 hours
- There's no collateral or personal guarantee needed for an unsecured term loan
- Both good and bad credit scores can get approved by a lender
2. Business Line of Credit for Doctors
If you've ever had a home equity line of credit or used a credit card, you already know the overall structure of a business line of credit. Lenders approve you for a maximum credit line, and you can withdraw funds as needed. You only pay interest on funds you use from the available credit line.
Why Choose a Line of Credit for a Medical Practice:
- Withdraw funds on demand as financial needs arise
- Interest is only charged on amounts withdrawn, not the total credit limit
- Can improve your personal credit score
- There's no prepayment penalty to pay off the balance sooner
Apply for a Business Line of Credit
3. Medical Equipment Loans for Doctors
Medical equipment is the foundation of a successful practice. Aging technology can hamper your ability to provide quality care. Whether you're buying new equipment or paying to repair existing ones, equipment financing can cover up to 100% of the costs. The structure of an equipment loan is similar to a car loan -- the equipment serves as collateral for the financing.
Why Choose an Equipment Loan for a Medical Practice:
- Quick funding with minimal documentation
- A good credit score isn't a requirement, as the equipment is used as collateral by the lender
- Competitive interest rates
4. SBA 7(a) Loan for Doctors
In cases where your working capital needs are further out into the future, an SBA 7(a) loan can provide some of the best interest rates and terms. SBA loans are secured partly by the U.S. Small Business Administration (SBA). Your actual loan is through an SBA-approved lender. The federal agency provides a guarantee of up to 85% of your loan.
Why Choose an SBA 7(a) Loan for a Medical Practice:
- Long payment terms -- loan term length can be five to 25 years
- Good interest rates
- SBA guarantees up to 85% of the total loan amount to the lender