Working capital is one of the most powerful financial tools you can have for your business. For example, you can upgrade computer systems or invest in a high-tech point-of-sale terminal. Other times, you may need to hire additional employees or remodel parts of your office. With a working capital loan, you can do all of these things, in addition to countless other things.
What Kind of Healthcare Businesses Can Benefit From Working Capital Financing?
Lenders have a lot of trust in doctors, dentists, veterinarians and other healthcare practitioners. It’s generally easier for these medical professionals to qualify for financing than other businesses. This is in part because healthcare businesses tend to have a lot of collateral available, and also because their services are always in demand.
Whether you run a family dental clinic, cosmetic surgery office, chiropractor’s office, physical therapy clinic, hospital, private practice, veterinarian’s office or a specialized location, you can get this type of financing relatively easily. All of these businesses can use working capital to grow and keep cash flow going strong.
What Options Are Available for Healthcare Working Capital Financing?
Many medical professionals mistakenly think that the only way to get liquid capital is with a specific working capital loan. These days, there are actually several different options.
One popular option is a small business loan with working capital included. If your business qualifies for SBA financing, you can use the loan for everything from real estate to equipment upgrades. In this loan, you can set aside specific financing amounts for working capital. This gives you the benefit of flexible capital with the extremely low interest rates of SBA financing.
Another option is to use a cash advance. This is a good fit for businesses with less-than-great credit. While you may not qualify for traditional loans, MCA or ACH advances give you capital based on your credit card sales. The amount you owe is deducted automatically from a percentage of your earnings, so you never have to worry about late fees or interest.
Factoring lets you use unpaid client bills as a source of immediate capital for anything you need. There are also medical lines of credit, excellent for taking care of everything from payroll to operating expenses.
With this flexible financing, there’s no limit to the things you can buy or do to help your company. The right choice for your practice depends on the amount of financing you need, the interest rates you want, and the amount of time you need to repay the loan. There are also alternative options that don’t require monthly payments at all.