Types of Loans for Doctors
- Debt Consolidation
- Buying Out A Partner
- Start A New Practice
- Buying Equipment
- Extended Terms
There are various reasons a doctor may need a loan:
A debt consolidation loan will allow the professional to merge and simplify various, separate debts such as college loans and equipment loans. Acquisition financing is a loan allowing the professional to buy an entire medical practice or buy out a partner doctor. Doctor business loans financing can be used to remodel or expand the doctor’s offices or purchase modern, upgraded equipment; this is usually known as leasehold improvement. Doctor business loans can be used for furniture and supplies, renovation and construction, the architecture
or design fee, and cabinetry. The doctor may also need a real estate loan to buy an entire building.
Recent graduates may need start-up capital to move into an office and begin their practice. There are many excellent loan packages, some with payment plans that are graduated and extend for ten years. Graduated payments start low and slowly increase.
Doctors and other health professionals with a busy practice are often able to secure 100% financing for their business needs. There are loans available with great terms, low rates and no down-payment requirement.
Health professionals usually have little trouble qualifying for a business loan. It is important to focus on every detail of the loan. Will anything be pledged as collateral? Is a realistic schedule for repayment set forth? The professional is advised to use the right borrowing tool for the job. Sometimes a credit card or line of credit can be used. Doctors often have access to large lines of credit at generous interest rates. However, it may be wiser to acquire equipment via installment payments or equipment leasing. Buying a practice and/or real estate is almost always a long-term debt situation. If the doctor is continually handling day-to-day operating costs with borrowed money, this may be a warning flag. In this event, it would be wise to meet with tax advisors, accountants and/or business consultants in conjunction with the professionals at Lion Credit and Capital.