Starting your own practice as an optometrist? After all your hard work you are going to be your own boss with your own business and hopefully this will be a rewarding experience. Sometimes getting the business off the ground requires lots of paperwork, legwork, and strategy. The first major hurdle you will face is finding the best optometry practice financing option. Medical practitioners look good to lenders due to their earning potential so that is good news. Odds are that you will able to turn a profit quickly due to the demand for your services. Getting financing doesn’t have to be as daunting as it may seem There are lots of options out there. The following are some business loan options for Optometrists…
What the Lenders Will Look At If You Are New…
Lenders will want to get a full picture of how you handled your finances. Your loan partner will know you are a new company without a long credit history or enough financial records to give them a complete picture of your companies track record. So, your personal financial records will make up for the difference. If they approve of the way you have handled your personal finances, they will assume that is the same way you will handle your optometrist business finances.
What Lenders Will Want to Know About Your Optometry Practice…
Whether you are just starting out, planning an expansion, or need new equipment, lenders want to know information about your practice. They need to know the purpose for your loan. They will also want to be aware of any existing loans and any business finances you can provide. Some uses are more appealing than others. If you are wanting to finance a new office, that is more enticing than if you want to use the funds to advertise or market your business.
The Options for Optometry Practice Financing…
Finding the best option for your needs depends on your specific requirement. All loans are not all created equal. It will depend on how quickly you need the loan, the amount of flexibility you need to paying it back and your ability to offer collateral in exchange for the financing.
The SBA Small Business Loan 7 (a)
Contrary to what the name suggests, SBA loans are not directly issued through the Small Business Administration. SBA loans are actually business loans offered through other lenders, such as banks and credit unions. However, these loans are partially guaranteed by the SBA. Since many lenders typically see small businesses as being a higher risk than larger businesses, this guarantee from the SBA makes lenders more inclined to offer loans to small business owners. SBA loans are particularly suited for optometry practice financing since they offer a great deal of flexibility. Borrowers are able to use the loan for just about any business expense. The downside of the SBA loan is it requires lots of paperwork and may take a long time to process. If you need fast access to capital these loans may not be right for you.
Traditional Bank Loan
The traditional bank loan does not offer terms as generous as the SBA loan but they are a great option if you need to find financing quickly. You can usually get a good interest rate with decent repayment terms if you qualify for a traditional bank loan. It is sometimes very hard for a optometrist who is just starting a new business to get a traditional bank loan. The lender tends to want a long business history and good credit scores.
Many private lenders and banks offer exclusive loan options for the medical profession, including applicants in need of optometry practice financing. These options can be a great alternative to other loans since they are designed to meet the specific needs of medical practitioners. This type of loan will help candidates buy or start a practice, expand or relocate offices, purchase equipment or buy real estate.
Business Line of Credit
This is best for for an operating business who has a solid track record. It is a great option for business that want the safety of knowing that they can pull out money from a lender as particular needs arise, rather than having a large loan balance sitting on their books when they may not need the full amount of cash right away.
When you are starting your optometry practice this is probably the easiest loan to get. These loans are a great option for small business owners who need financing to purchase machinery and equipment. The value of the equipment itself serves as the loan’s collateral since the bank can sell the equipment purchased if you can not make a payment. Since the bank assumes less risk your odds of approval increases as a result.
Optometry and Ophthalmology practice owners grow their business through construction, expansion, acquisition, real estate financing, and more. We hope these tips help you see all the options available to you to accomplish your individual needs and helped you determine what you intend to use the loan for before you sign on the dotted line!
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