Funds readily available through a line of credit are essential for preparing and handling unexpected expenses.
Truly amortized product, where you only pay interest on money that is drawn from line.
Unsecured programs, no collateral needed, up to $250,000.Annual Interest Rates are Prime (8.5%) + 0% to 2%.
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Funds that are Available When You Need Them Most.
Medical Doctors often require large sums of money in working capital to run and expand their practices. Doctors use commercial credit lines to cover interim business operational expenses as they await for insurance payouts and receivables.
A Quick and Easy Process from Start to Finish.
We have created the perfect process to approve and arrange a line of credit facility for your Medical Practice. Working closely with you every step of the way, ensures everything goes smoothly to secure your business the correct line of credit.
To qualify for a line of credit, your medical company should have demonstrated profitability on the most recent filed business tax return. This showcases your ability to afford payments after drawing funds from the line of credit. Even if your last tax return shows net losses, you may still be eligible. Certain expenses (non-taxables) on the return can be "added back" to the net profit amount, bringing your business to a qualifying requirement. Examples of expenses that may be added back in are certain interest paid on borrowed money and depreciation expense incurred by use of equipment or real estate owned by company's members other than owner/officer/partner who is requesting loan.
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When she needed to invest in new EHR software, she didn't have the necessary $15k without dipping into her practice's savings. This led her to Line of Credit Depot, where she was approved for a $100k revolving line of credit.
With this new financial support, Dr. Sarah was able to invest in her practice and manage her cash flow more effectively. She bought the EHR software outright and hired a new PA without concern.
Despite insurance claims still being slow to pay, Dr. Sarah used her line of credit to cover short-term expenses. When the reimbursements arrived, she used them to pay off the credit line.
With the flexibility provided by her line of credit, Dr. Sarah is now able to expand her practice at her own pace. She's planning to open a second location this year.
Lines of credit are very popular amongst the healthcare provider industry because doctors shoulder most of the patient financial care burden. Simply put, doctors see patients before getting paid from insurance. Today’s physician practices face a lot of challenges as a business model. Keeping your practice financially healthy can be difficult from industry challenges like reduced health insurance reimbursement rates, underinsured patients and staffing shortfalls. Medical offices are a vital business in our country and doctors these days are seeing more red tape and restrictions as well as ever changing insurance payer rules.
When medical practices are looking to apply for a line of credit, they mostly cite invoicing and accounts receivable delays as their number one reason for applying. The healthcare revenue cycle can be a headache for medical providers, prompting doctor offices to look for outside credit to bridge this gap.
Reimbursement delays will negatively affect the cash flow for doctor offices. When claims submissions get kicked back from insurance companies, the doctor's office still hasn’t gotten paid. THis can create headaches for the doctor, who, besides seeing patients, has to navigate how to run the business smoothly and balance cash flow with all the other bills associated with the practice, ie; staff salaries, rent, utilities, etc.
Besides delays in A/R, medical practices who receive lines of credit often draw from the line for the following reasons:
-Making Medical Office Payroll
-Office Technology Improvements
-Marketing and Advertising Campaigns
-Medical and Imaging Equipment Purchases
Unforeseen expenses while running a medical practice seem to usually always come up. If there are large fluctuations in patient volume, cash flow challenges can be exacerbated. That’s why successful and fiscally responsible medical practices have a security cash reserve to weather the business ups and downs. They don’t just have cash sitting in an account, but have access to a line of credit that allows them to draw funds as needed.
If you own or are partnered with a medical practice and wish to learn more about what lines of credit are available please apply here.
Bank Lines of Credit Without the Headache
Manhattan, NY
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