Cash flow problems are very common for doctors and other medical practitioners. One of the main reasons is because of how long health insurance companies take to pay medical claims. With some insurance companies taking up to 90 or even 120 days to pay a claim, smaller practices just cannot afford to wait that long to get paid.
Another major cause of cash flow issues for doctors is the cost of staying up to date on cutting-edge medical equipment. According to the Census Bureau data, in 2011, $159.4 billion was spent on medical devices and in-vitro diagnostics. As technology continues to push the boundaries of healthcare, doctors and physicians struggle to find financing to pay for these newer medical devices.
With the advent of alternative lenders, doctors and other medical practitioners have been able to secure financing easier than ever before, allowing them to turn their focus back onto their patients and practice. These small business loans for doctors, provided by alternative lenders, typically are funded within days, giving doctors access to cash flow almost immediately. Additionally, alternative lenders tend to focus more on the practice’s historical revenue and less on the doctor’s personal credit score, offering medical practitioners with less than ideal credit an opportunity to get financing.
Practice loans for medical professionals can be used for almost any business-related reason. For example, an optometrist is looking to update their vision diagnostic equipment to the latest technology, but does not have any collateral to use for a traditional bank loan. Instead, the optometrist could use the medical practice loan to pay for the new piece of machinery. Since the funds can be obtained within 24 hours, the optometrist can have the new ophthalmic equipment relatively fast, allowing them to provide their patients with latest care.
If your medical practice needs cash for inventory, expansion or another reason, Bizfi has medical practice loan options to fit the needs of most offices. Apply online or call to speak to a medical practice specialist today!