Three financial tips for physicians to improve their chances of getting funding
With the official end of summer quickly approaching (September 23) and the kids back in school, doctor’s offices in America will be getting a little more crowded in the coming months.
According to a recent survey by the Centers for Disease Control and Prevention (CDC), more than 90% of children have had contact with a health care professional and two-thirds of school-aged children (aged 5-17) will have missed at least one day of school during the year.
Many healthcare professional will seek specialized physician financing in order to sustain servicing an increased demand of patients. Whether it’s obtaining funds to hire more staff or just ordering more office/medical supplies, Biz2Credit can help.
If you’re a physician that is planning on applying for a loan, here are three tips to help increase your likelihood of getting approved for a loan:
Make sure your financial statements are in order
Banks and other lending institutions, like every other enterprise, are in the business of making money. Before they grant any funding request, they want to make sure that there is a high level of certainty that your business model has the sustainability to repay the debt. Typically, banks would like to see some sort of track record of profitability before approving a loan.
Keeping an up-to-date income statement not only helps you determine how well your business is doing, but it provides a resource for lending institutions to refer to when making their decision. An organized, easy-to-analyze financial document will improve your odds of getting approved.
Maintaining an accurate business plan
A business plan is a company’s blueprint for success. A physician running a practice is a small business owner and should refer to his or her business plan as a guide. In fact, it is one of the many documents that creditors will scrutinize. An outdated business plan not only looks bad, but it reduces your chances of getting a loan. Should your company’s long-term or short-term vision change, it should be reflected in the updated business plan.
Improve your personal credit score
Credit scores are one of the financial qualities that is often overlooked, but when the time comes that your business is applying for a loan, it’s one of those areas that should be up to par. An individual’s credit score is measured on their track record of repaying debts and if your credit score is under 600, you may have to look outside of banks to get the funding you need and the loan will come at a higher interest rate.
Contact a representative at Biz2Credit at (800) 200-5678 to find out how we can help you get the funding needed for your business.
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