When you are ready to begin a new practice, expand your current practice, or purchase an existing practice, you need a trusted source for healthcare lending and small business lending. Your practice is not just another dental office or medical office. Your business is a group of doctors, nurses, staff members, and patients who rely on you. Therefore, you need to know that you can locate a healthcare lender who can supply the small business lending resources needed when your practice requires additional cash flow for any reason.
If you are searching for a trusted source for healthcare lending, it helps to understand the current trends in small business lending and the healthcare industry.
Merging Practices or Joining Healthcare Systems
In some cases, a healthcare practice may merge with another practice or join a larger healthcare system instead of seeking additional funding from an outside source. By merging practices or joining a healthcare system, practices can reduce overhead. However, many small businesses wish to remain independent. For those medical offices, locating a trusted company to provide healthcare lending services is a must.
Online Lending Sources Decrease the Wait Time for Funds
Online lending sources have continued to grow as small business owners utilize the internet to transact business, including searching for and applying for healthcare financing. For many medical practices, applying for a loan online is quicker and more efficient than using a traditional or local bank. With additional small business lending websites appearing all the time, the online healthcare lending market continues to make it very easy to fill out a form and obtain loan approval within a few hours. For many practices, choosing a non-traditional lender is more efficient and quicker.
A New Approach to Healthcare Lending
Healthcare and small business lenders are becoming more proactive just as many medical groups are turning toward value-based healthcare. Instead of just loaning money to a practice, healthcare lenders are utilizing other resources to help business owners grow, improve, and strengthen their medical practices.
Patient-centered care has become one of the leading trends in the healthcare industry. Some small business lenders recognize the shift to patient-based care. Therefore, some healthcare finance companies include tools and other resources as part of their financial services. The resources and tools help medical providers implement new processes to transition their practices toward patient-centered healthcare. Choosing a provider for your healthcare lending needs that offers resources and tools in addition to financial can help your practice succeed.
Traditional Banks vs. Other Lenders
Many traditional banks offer long-term financing and SBA loans. Traditional healthcare lenders often have the lowest interest rates and longer repayment terms. However, traditional banks typically require much more documentation and paperwork than alternative lenders. In addition, the loan process with a traditional bank can take much longer.
On the other hand, other lenders have emerged as non-traditional healthcare lending companies. Many of these lenders operate online offering small business lending solutions to medical practices and dental practices. While obtaining a loan from a traditional bank has certain advantages, companies that specialize in healthcare lending services offer some benefits that a traditional bank does not offer.
For example, non-traditional lenders have a wider variety of loan types, rates, and terms. Some companies also offer debt consolidation for healthcare practices. In addition, the application process is streamlined so that you receive your funds in days instead of weeks or months.
Consider all Healthcare Lending Options
You have a wide variety of companies to choose from for your small business lending needs. Carefully review each company and review all terms and conditions before determining the solution that is best for your practice.