Why medical practices are turning to small business loans now more than ever
Members of the medical industry are perceived as having comfortable and super lavish lifestyles. This is totally untrue. The cost of running a medical practice is getting high year over year. Many doctors are waiting months to be in paid in full for services rendered. Many reports also show that doctor/patient relationships are getting more and more complicated due to the fact insurance providers aren’t paying properly. It’s become more and more complicated. Getting paid is painful, and complicated. Many doctors have a build up of pending invoices that simply aren’t getting paid. This is where doctors are turning to lenders like Delancey Street. We provide medical practice loans for practitioners all over the USA. We help them when traditional lenders refuse to lend them money.
Here are some reasons why small business loans are becoming huge for doctors in 2018 and 2019.
Takeover of high deductible plans
High deductible plans are putting more responsibility on patients, many of whom typically had copayments as low as a few dollars. But, according to eVisit.com, the average copayment for doctor office visits is over $100. Some plans are even forcing patients to cover the entire cost of procedures, like MRI’s. Patients however don’t make copayments on the same day as their actual appointment. According to MGMA(medical group management association), 30% of patients leave the office without handling their copayment – which leaves the doctor running a deficit. This is a problem for doctors who typically used to get reimbursed by insurance companies but now rely on patients to reimburse them. Now, they have to chase down patients for money. Many studies have shown that most medical practices have a 5-10% delinquent account rate. The process to get paid can take 50-100 days, which is huge.
Competing with urgent care providers
Many medical practices are now competing with urgent care providers that have a lot of money behind them. Many patients are going to urgent care clinics because the clinics offers immediate access to a doctor, more hours, and a simpler payment system. You will rarely hear an urgent care clinic complain about payment related issues – this is because urgent care clinics have a different payment system – and don’t accept copayment. The competition from urgent care providers is crushing medical care providers who can’t compete with their payment terms.
Medical practices are seeing an increase in expenses. Many practices are located in high priced rental properties that make them desirable and expensive. In addition, many medical practices are being forced to go “digital,” due to Obamacare mandates. This means new technology, and new people who have to service that technology. But, reimbursement rates are remaining stagnant, making it difficult for doctors to meet the costs of payroll, technology, and office expenses. Doctors are being forced to do more, but getting paid less.
We help doctors who need money now
Regardless of whether your medical practice is facing expenses due to delinquent payments, or because your cost of operating is higher than your revenue – we can help. We can provide funding for new equipment, new staff, furniture, technology, and more. We specialize in medical practice loans. If you’re waiting on insurance payments, or have financial issues – we can help you. Traditional banks will take months to approve your loan – regardless of how much you need. In contrast, we’ll approve your loan in 24-48 hours. We provide high flexible loan terms, which means that payments can be adjusted based on the timeframe you need.
If you’re in a cash crunch, we can provide a number of financing options, ranging from cash advances, to cost effective small business loans. With us on your side, you’ll never have to worry about money again. We want you to focus on your medical practice, and growing its profitability. We want you to think about the service and medical care you provide. Focus on helping others, trust us to help you with ALL of your business and financial needs.
Your company is never going to be able to prosper if you’re limited in terms of the capital you have standing by. Investing in company growth is the way forward, but investing is not easy if you are at the moment dealing with cash shortages.
We’re here to help. We’ve helped many Omaha businesses like yours to get the money they need to move forward.
Biggest reasons why you should acquire your financing with our help
What are the advantages of working with us? There are many. These are just a few of the most helpful examples companies find in terms of benefits of partnering up with us:
- Getting approved quickly- Business owners who are in need of capital don’t have time to sit around and wait for the results of an application. For this reason, we approve those who are eligible right away.
- Being loan worth with a lower credit score- A lower credit score may create some challenges, but it will never completely disqualify you or your company.
- Having access to funds quickly- The sooner you can access funds, the sooner you can enjoy growth at your company.
- Using funds however your company sees fit- You’re not limited in terms of what the loan funds can be spent on.
- Enjoying flexibility and options- These days, there are many different loan products out there. Not only are there traditional business loans, but there are also merchant cash advances. Choose the option that’s right for you.
What you need to do to get ready
Taking out a business loan is a big commitment, and you need to be prepared. You can prepare by having staff members at your company perform a thorough analysis of your capital needs. You should know specifically what your expansion plans are before you get started.
Things to know about company credit
Seeking a loan for your company will involve not only your company’s credit score and history, but also the credit score and history of the owners. For this reason, it’s a good idea to study credit considerations carefully before you decide what type of loan to seek and who to seek a loan from.
In the days leading up to when you’re applying, pay off some debts if you can. In any case, make absolutely certain that you’re not missing any payments so that your credit standing will be negatively impacted.
Asking for financing so that you get a yes
It’s important that business owners seeking a capital loan know exactly how they should be approaching lenders. The more focused and knowledgeable you come across when you apply, the better your chances are going to be.
In pursuing business financing, an important key ingredient to success is a well target application for funding. This means you should be very aware of anything going on at your company that’s going to impact your finances. Although you’ll be able to use loan funds on anything you want, you still shouldn’t seek a loan until you know exactly what your company will be purchasing with the money.
Getting together the necessary paperwork
There are numerous documents that a lender is likely to want to see in order to work with you. You’ll need to track down financial projections and papers detailing the income that’s coming in for your company.
Be organized and professional. Show that you’ve done your homework so that the lender feels you can be trusted.
Ensuring that loan terms are right for your company
Business owners should never sign on to a loan agreement without first carefully evaluating it. A business loan is going to impact your company’s finances into the future. Make sure you’re aware of the interest costs and make sure you’ve devised a budget that shows you can keep up with payments.
If you’re tired of struggling to get approved for business loans, we may be able to help. We’re a great resource for bad credit loans in Shreveport that you should look into and explore. We’ve helped business owners out there to meet their goals, and we want to help you too.
Feel free to get in touch with us to learn more. In the meantime, read on to find out some of the most significant aspects of our financial product offerings.
Examples of benefits your company can enjoy with us
We’re a unique loan provider. We can help Shreveport businesses with borrowing advantages that other lenders often don’t have.
Your company can take advantage of benefits like these:
- Getting around the credit obstacle- For most companies, one of the most common obstacles to loan approval are the credit requirements. That being said, we can get an applicant approved in many cases because we specialize in bad credit cases.
- Using funds on your target projects- Some lenders will limit business clients in how they can use a loan. We don’t do that. The loan we provide consists of funds that are used at the business owner’s or company’s discretion.
- Moving quickly- Nobody wants to be delayed when they’re eager to get started on a big project. When you are approved for a loan product from us, you can often use the loan money after only two days have passed.
- Budgeting for repayment- Don’t overlook the repayment aspect of the loan. With us, we aim for convenience and devise a repayment schedule that fits within our clients’ budgets.
You shouldn’t make the mistake of borrowing prematurely. A small business loan is a big deal. Your loan is going to stick with your company for a while until it’s paid back. Even afterwards, it will still continue to have financial repercussions for your company.
Have loan goals clearly formed in your mind before you start.
Business owners tend to be ambitious people who enjoy jumping into projects. That’s great. But patience often helps in business. You probably can get a better deal if you are able to bring your credit up even a little bit.
Factors like outstanding debt or missed payments on credit cards and loans hurt company and individual credit scores. Waiting a period of time before applying to clear these kinds of errors up will strengthen your application and improve the terms of loans your’e offered.
Set clear targets
It’s important that you show some direction when you’re applying for a loan. Lenders are going to ask you a lot of questions. They want to know that you’ve got a target.
Although you can use our loan funds on anything, we still advise any business borrower to know specifically what capital will be used for and why borrowing is necessary.
Collect your financial statements
A variety of different documents should be included in an application for a business loan. As a business owner, you should know that managing your finances is of vital importance to making a profit.
Any financial document you use to run your business is probably important to your search for a business loan. You should be working with income statements and balance sheets on a regular basis to keep your company healthy financially.
Compile all financial statements and use them to present your case to the lender. Showing you have strong income at your company will definitely help convince a lender to work with you.
Know precisely what you’re getting into
Business owners are occasionally so eager to get started with a project that they jump into a loan they haven’t fully thought through. This is a bad situation to be in. Take your time to make the right decision before accepting loan terms.