Doctors and physicians aren’t immune from incurring cash flow problems of their own.
Without access to funds, healthcare professionals find themselves in the same pickle as any other business owner. It can become hard to make payroll or pay bills on time, for example. And forget about buying that cutting-edge piece of medical equipment or opening a new location.
To solve their cash flow problems, some physicians are forced to look for outside funding. Many of them turn to banks but quickly find that it can be difficult, at best, to secure a loan from them.
For starters, banks require businesses to present at least three years’ worth of tax returnsduring the business loan application process. So if you have a newer practice, you can forget about asking a bank for a check. But even if your practice has been open for quite some time, you may still strike out. According to a recent study, more than half of small business ownersapply for bank loans unsuccessfully.
Luckily, there are other forms of financing available. One method—unsecured business loans—may scare medical business owners who are afraid of trying something different. But believe it or not, these physician loans may be just what the doctor ordered for your practice.
Here are five reasons you shouldn’t be afraid of this kind of alternative financing.
- You don’t have to spend hours comparing lenders.
There’s no shortage of lenders willing to extend business funding to physicians and other healthcare professionals. But once you find a lender, how exactly can you be sure that you’re getting the best rate? Doctors don’t really have time to spend hours doing their own research, after all.
Thanks to consumer comparison services, however, they don’t have to. Such services enable doctors to search a wide array of physician business loan options from many different lenders in one fell swoop—which sure beats trying to find the best deal through simple Google searches. This way, doctors are able to compare a number of lenders to make certain they’re getting the best rates before signing a contract.
- You don’t have to fill out a mountain of paperwork.
Many doctors think that they’ll have to put their John Hancock on paper after paper after paper when they begin the process to secure outside funding. While that may be true when applying for small business loans through traditional financial institutions or entities like the Small Business Administration, it’s not true in the world of unsecured business funding.
To secure a physician loan, all you need to do is fill out a quick form online. You can then shop your options quickly, choosing the best deal offered. Actual paperwork is kept to a bare minimum.
- You don’t have to put up any collateral to secure funding.
Many loans require borrowers to put up a personal guarantee or some collateral in order to secure financing. This way, lenders are assured they’ll be repaid even in the event a business fails.
You probably aren’t interested in putting up your car or home as collateral to secure financing. Thanks to business loans for doctors—which don’t require any collateral or a personal guarantee, either—you don’t have to.
- You don’t need great personal credit to qualify for a physician loan.
Doctors with bad credit might be nervous to apply for an unsecured business loan for fear of getting rejected. If you find yourself in this group, take comfort in the fact you’re not alone. According to a recent study, nearly one-third of Americans have bad credit scores, so you’ve got company.
You’ll be glad to know that being in that group doesn’t even affect your chances of getting an unsecured business loan. Financing is based on your business’ performance—not your personal credit score.
- You don’t have to wait forever for funds to come through.
On average, it takes at least a month to secure financing through a traditional banking institution. Imagine putting in all of that time only to find out you didn’t qualify for the loan in the first place. And even if you did qualify, can you really afford to wait an entire month before getting paid?
The good news is that you can secure funding through physician loans much quicker—within two or three business days even. So not only is the application process streamlined, the funds come through faster than you might have imagined.
You may be unfamiliar with unsecured business loans. But they’re nothing to be afraid of. In fact, they very well could be the financial vehicle your practice needs to grow.