An increasing number of healthcare professionals and organizations are pursuing financing solutions for a variety of purposes. If you are considering a financing solution, here are five things you should know about healthcare funding before you begin the process.
1. There are many uses for financing. There is often a perception that the most practical time for healthcare organizations to consider applying for a loan is when they are planning a substantial investment in the organization, such as for building expansions and renovations. But there are many other times when receiving an influx of capital can help a healthcare organization — or even an individual healthcare professional (see #3). These include commercial debt consolidation, capital expansion projects, startup expenses, refinancing, software and equipment upgrades, funding a captive insurance program and when an organization is need of an increase to emergency cash reserves.
2. You can receive small to large loans. While many lenders require organizations to obtain a loan of at least hundreds of thousands of dollars, there are companies willing to provide an array of medical financing programs with limited funding requirements, including much lower loan minimums. With lower minimums, organizations and professionals can apply for a loan in an amount that makes sense for its purpose.
3. Financing is available to all organizations and professionals. Obtaining a loan is not just an option for the largest organizations. There are lenders that cater to smaller organizations, including ambulatory surgery centers, pharmacies, clinical labs and medical groups, and even individual practitioners, such as physicians, pharmacists and advanced practice registered nurses. In fact, these lenders may be a better fit for smaller organizations and licensed healthcare professionals than a lender that caters to large organizations (see #5).
4. Banks are not the only lenders. Most banks provide loans, but a bank is not a healthcare organization's or professional's only option from which to receive funding. There are financial organizations that not only provide medical financing but may also be in a better position to develop focused, customized programs that meet the day-to-day challenges faced in today's healthcare environment. These companies often allow you to apply online, in the privacy of your home or office, freeing you to focus on what matters most.
5. Make sure to do your due diligence. With choices that range from lenders and terms to loan amounts, organizations and professionals considering pursuing financial products should take the time to research their options rather than rush to apply for a loan. Failing to conduct due diligence could result in an organization or professional partnering with a bank or company with a slow approval and funding process and/or receiving a loan that includes unnecessary fees, high interest rates, an unreasonable term length and other questionable requirements.
In addition to researching different loan providers, healthcare business owners and individuals may want to identify companies that offer flexible, innovative funding programs tailored solely for the healthcare industry and, more specifically, for their organization's type and size or profession. It will be easier for business owners and professionals to discuss their financing needs with a company that has such an expertise in healthcare.This understanding of and experience in the healthcare industry should allow the company to put together a financing program that will truly meet a business owner's or professional's specific needs.
Jeff Blankinship is co-founder of Surgical Funds, a new firm that facilitates medical financing alternatives for licensed healthcare professionals and business owners. In partnership with the nation's premier funding partners, Surgical Funds offers a variety of fast, hassle-free financing programs that can be accessed online at www.SurgicalFunds.com.