Financing Tips for Starting Your Own Medical Practice￼
For many healthcare professionals, having their medical practice provides many benefits. Instead of having to work excessive shifts or answer to hospital administrators, they can make the decisions about their work. It can also be lucrative for doctors, dentists, chiropractors, and other healthcare professionals to have a private practice. With a loyal base of patients, it’s possible to make more money independently or with a few other doctors rather than be affiliated with a large medical center.
Of course, to be a success, any business requires financing. Healthcare practices are no exception. By making smart decisions regarding financing, it’s easier to deal with the challenges that face fledgling businesses. The right loans and leases help with building a strong foundation for new businesses, and they contribute to a larger client base. Here are several tips that can make a big difference.
Obtain a Source of Flexible Financing for Cash Flow
One of the largest challenges that healthcare practices face has to do with insurers. Insurance companies are notorious for taking a long time to pay patient bills. This situation is difficult for hospitals to deal with, and it’s much more serious for a smaller medical practice.
When you have to fight to get paid for your services for months, it can cause cash flow problems. It’s not that you won’t get paid — you will — but waiting six months for the capital is difficult. After all, your practice needs a regular influx of money every month so you can cover payroll for your employees, lease payments, rent, taxes, and other overhead.
Fortunately, several financing options can pick up the slack. The goal is to get fast financing that covers your needs but can be paid off quickly once you receive the funds from your invoices. Factoring lets you sell unpaid invoices directly for an immediate infusion of capital. Lines of credit are another excellent option for medical practices.
Calculate Your Costs Before Opening
It’s easier to make smart decisions before you open your practice than afterward. There are ways to lower your monthly operating expenses if you need to, such as by partnering with another professional to share certain expenses, such as rent and equipment costs. Speaking with a financing professional before you make key decisions lets you decide ahead of time how feasible certain goals are.
Once you know your priorities, apply for medical financing. This type of funding can cover real estate, remodeling, diagnostic equipment, patient equipment, payment systems, and countless other things needed for a fully functional, attractive medical practice.