Cash flow issues for a medical practice can really develop into a major problem, primarily because patient payments and insurance payments are not nearly as regular as they could be. When incoming revenue is sporadic, that can wreak havoc on the budget for a medical practice, especially since all the usual bills and expenses come up like clockwork every month. Here are some government loan options you may want to consider for acquiring alternative funding to finance your medical practice.

Government Real Estate Loans

Since they are considered to be CDC/504 loans, Real Estate and Equipment Loans can help provide needed funding for large fixed assets. In order to be eligible for these types of loans, your medical practice must have a net worth below $15 million, and a net income which is below $5 million. The resources of your medical practice will be closely scrutinized, in addition to having the business owner’s personal financials examined closely.

Microloan Program

Loans issued under this program require that your facility size be values at no more than $50,000, and the loan’s purpose is to help small businesses proceed through the startup phase and then through expansion. It’s generally necessary to provide some form of collateral with this loan, in addition to a personal guarantee from the owner of the medical practice.

Small Business Loans

These are the most common types of loans provided by the Small Business Administration. They are made available to businesses which operate for profit, and have at least some equity invested in the medical practice. It’s generally necessary to also have made use of other financing sources, for instance your own personal funds, before applying to the SBA. These loans are part of the SBA 7(a) loan program, and are generally carried out through large financial institutions such as conventional banks.

Need Financing for Your Medical Practice? 

If you have a medical practice and need financing to smooth out your cash flow, we may be able to offer financial assistance. Contact us at Increase Lending so we can consider some ways that funding could help your practice.