Opening a medical practice is an admirable journey; after all, the world can always use more doctors. Unfortunately, it is an expensive one that most people aren’t financially prepared for on their own (especially when you factor in those medical school loans). Luckily, there is financing available. This quick how-to guide will help you determine the right lending to meet your needs.
Consider Building Options
If you are the only one in your practice, leasing an office can be quite expensive. If you aren’t ready to purchase property but aren’t ready to pay high rents on your own, consider other options. Is a local doctor retiring? The financially sound option could be to purchase his or her practice and take it over instead of starting from the ground up. If leasing is your only option, consider finding another doctor to open a practice with to lighten the load. Once you secure funding and open the building, you can also find unique ways to lessen costs, such as allowing specialists to sublet some of your office space.
Think About the Equipment You’ll Need
Medical equipment on its own is highly expensive, but you also need to consider exam tables, waiting room furniture, computers, software to store medical records, décor and many other items you’ll need to fill up your new space. When it comes to the equipment, consider an equipment leasing option for your medical practice. Leasing allows you to make monthly payments on your equipment for a pre-determined amount of time (usually anywhere from 1-10 years), and during the time that you’re leasing, the lender is likely to repair and upgrade your medical equipment as necessary for you to stay on the cutting edge of medical technology. Traditional small business loans or business lines of credit are often good choices for items that don’t fall under an equipment lease, such as the waiting room furniture.
Looking to the Future
Even if you don’t need a business line of credit right now, it is a good idea to open a credit card for your practice now. It not only helps to establish your practice as a reputable business, but also provides you with a backup plan in case you find yourself in a situation that requires more supplies or equipment sooner than you expected and with no other way to pay for them.
Perhaps even more so than doing so for a non-medical business, it is very important to take your time, plan accordingly and find reputable lenders when applying for financing for a medical practice. You want to ensure you do good business behind the scenes so that you can practice excellent medicine for your patients.