Financing a New Medical Practice

Hi, my name is Sue Rankin and I’m a
commercial lender here at United Bank. If you want to start your own practice, I’m
going to be asking for you to take a look at the market that you want to be in and
to determine does it make sense. If you’re coming into a new area you need
to figure out what the competition is going to be, so one of the things that we
like to see is a business plan. Now that business plan is going to show a lot of
information. It’s going to show what the market is doing, what do you
anticipate that you’re gonna be able to do for business and then what’s your
plan long term. Another partner that you really should be getting to talk to
early on is a CPA. They’re the one that’s going be able to help you figure out
what the income is going to be, what your expenses are going to be – because there are standards and they know that. There are lots of CPAs that work specifically with
your newer specialties, so it’s nice to connect with them and I’d be more than
happy to give you some some connections because I know some people in the area
and they’ll they’ll sit down with you and they’ll put together the business
plan. They’ll put together the projections, we call them. How much how much revenue am I going to generate? How much expense am I going to have and how much money an I going to have left over for the loan that I’m going to need to get it all started. You know every single loan request is unique. The nice thing is that working with a
community bank, you’re working with the individual you started talking to. It’s not
a one-size-fits-all type of a loan because everybody’s different. I’m not
gonna send you to a scoring model type of approval, I’m gonna be working with
you the entire time. But there are different types of loans that you’ll be
looking at when you’re starting a new practice. For starters, you’re gonna have
a working capital and a credit and what that is, that’s that’s paying for all the
expenses, typically for six months, until you can start generating that income and
getting that money back from the insurance companies. Another line or loan
that you’ll need is equipment loans. That’s probably your biggest expense
when you’re starting a new practice in addition to if you were renting a space,
you can have to do leasehold improvements. That’s also done with a
term loan, so depending on the dollar amount of the equipment that you’re
looking for and the amount of improvements that you’re going to do,
we’ll structure a term loan with a little bit more flexibility. I like to
give you what’s called an interest-only portion, that gives you time to develop
some of that revenue that you’re going to be building up and then it switches
over into a monthly principal and interest payment – sort of what you’re
used to for a car loan.

Leave a Reply

(*) Required, Your email will not be published