Financial Literacy

How to grow your medical practice

Getting a loan to start or expand your medical practice is fairly similar to funding for other industries. Most of your potential financing options are the same, qualifications are similar, and lenders will want to see the same kinds of loan application documents for your practice as they would for other small business applicants. There are a few unique funding sources just for medical businesses, but more on that later.

Lenders like applicants who have good personal credit, a solid business plan, and proof of profitability. Even if you’re still paying off student loans, you may still qualify for a loan, so long as you have a good track record of on-time payments. Many lenders like to invest in medical practices since they’ve got strong odds of becoming profitable in a short amount of time. Just make sure that you have a comprehensive picture of your personal finances, as well as that of your practice.

The amount of work you’ll have to do to put together your loan application varies between lending options. Some loans require very little paperwork, while others may ask you for a skyscraper’s worth of documentation about your personal and professional finances. As a general rule of thumb, more paperwork tends to mean lower interest rates and more generous terms — it usually pays to do your homework.