Most people think it is easier for medical practitioners to attain loans than for other types of business owners. They have position of respect and are thought to be well compensated. Doctors have to learn the business of running a medical practice – especially in an era when insurance companies tightly scrutinize claims and can take 90-120 days to pay.
Doctors needing capital to launch or expand a practice have to follow similar steps as entrepreneurs in any other industry. Here are the top things that lenders look for in potential borrowers.
Having a poor credit history will really hurt you in the loan application process. There are alternative options for those with bad credit, such as merchant cash advances, but it is still important that you focus on raising your credit score. Start paying back debt and saving up, and slowly you can boost your score. If you try applying again with an improved credit score, your chances of approval will be much greater.
2. Strong Business Model
There are plenty of doctors, dentists, optometrists, and orthodontists with private practices all over the country. What makes yours special? If you want to enter the industry—especially if your city already has plenty of medical offices—you’ll have to have a strong business plan and business model to set yourself apart. Be clear in your business plan about the goals you have for your clinic, both short-term and long-term.
Your character is a powerful determinant of how successful that loan application is. Be professional and courteous towards any banker or lender that you meet. If he or she does not feel like you are trustworthy, your loan application will be less likely to be approved. Be honest and upfront right away, and don’t try to hide any dark parts of your financial history—you will be discovered!
Have all the information a banker could possibly want to know about your small business—including the purpose of the loan, the desired amount, any entrepreneurial or managerial experience you’ve had in the past, your credit score and financial history, etc. The more prepared you are, the less work there will be for the banker, and the smoother the loan application process will be.
Biz2Credit will help you with your small business needs. Visit the website or call (877) 861-2210 for help.