Mistakes Doctors And Dentists Make When Looking For A Loan

Whether you practice is new or you’ve been a physician or dentist for years, there are important things to keep in mind when you are looking to borrow money, whether for an expansion, equipment, or to hire employees. If you avoid these common mistakes when looking for a loan, you’ll put yourself in a better position with the bank.

1. Not Planning Ahead. The number one mistake most make when it comes to medical financing solutions is a failure to plan. You know how you’re going to spend that money, but you also need to know how you’re going to pay it back and over what period of time. Are you shopping for medical/dental equipment to expand the functionality of your practice? The new income you’ll generate will help you pay the loan back quicker than if, say, you were just hiring new employees.
2. A Failure to Shop for the Best Terms. When you apply for a car loan, your dealer will run your application through a few different financing services to help try to find you the best loan. Why would you then not do the same for your medical or dental practice? For the best results, let your Fuoco Group and TFG commercial loan specialists help you to compare and contrast what various lenders offer so you end up in the best situation.
3. Not Considering the Specific Function of the Loans. Some providers will adjust the terms and conditions on small business loans depending on exactly how you plan on using the money. A case in point would be commercial real estate loans designed for doctors and dentists.
4. Not Paying Attention to the Term Life. If you’re taking on a small business loan to help get you through a slow period, a short term loan may be desirable. If you’re purchasing a commercial building to expand your practice, a 15-year loan may not be best.
5. Financing Too Little. Take a good look at your circumstances, profits, cash flow and budgets, projected growth, etc. You may now have the cash on hand to only take out 50% of the money that you need but that doesn’t mean that you should. Patients can switch practices, there are seasonal swings in your accounts, a practitioner may leave. If 100% financing is available at terms that are favorable, ask your Fuoco Group and TFG commercial loan specialists to run some scenarios and numbers or you.
 
CONTACT US: The best financial advice for a doctor or dentist will come from an advisor who understands the "unique financial situations" they and their practice face. Our accountants, tax professionals, and TFG financial advisors have the expertise and experience in healthcare that can help you achieve your goals for 2020 and beyond. Contact us for appointment to discuss your unique situation at 855-534-2727.
 

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