When you are a medical professional looking to open your own practice, there are several big decisions you are going to make. Outside of industry-specific considerations like which insurance providers you will accept, you also need to consider practical decisions like whether or not you will rent or purchase the medical office you operate out of. If you want to own the building, then you need to think about a few financial considerations. Look over this advice to discover how to get started investing in your own building for your medical practice.
Determine Your Size
Whether you already run a practice out of rented space or you are looking to start a brand new business, the size of your establishment will play a part in securing financing. The more room you require, the more money you are going to need. What’s more, you may need additional funds to cover expenses like equipment and administrative software. Before you attempt to find lenders, you need to develop a business plan that details how you will use the funds toward purchasing your space and helping your practice grow.
One practical option for real estate investments is an SBA loan. Released by the Small Business Administration, these loans are structured to assist smaller establishments with covering some of the heftier expenses that come with running a company. Certain SBA loans can be taken out to cover the costs of purchasing a piece of property, including a medical office. However, due to the excellent terms and desirability of these loans, there are rigorous standards for approval. You must have an exceptional credit score and, in some cases, have a business that is valued within a certain range.
Think About Your Obstacles
As a medical professional, you probably already know how difficult it can be to secure payments from insurance companies and patients alike. This is something to consider when thinking about investing in property. If you know your available capital may disappear due to unpaid invoices and prevent you from paying back a loan, additional financing services like factoring can be useful. You can sell your unpaid invoices and receive an advance on the funds you are owed. This can help you cover expenses like making monthly payments on a loan aimed at securing a property.
Whether or not you purchase your own medical office comes down to what you want for the future of your business. Consider how you can secure financing for this endeavor and see if it is the right decision for your medical practice.