The life of a doctor is full of challenges. It’s in the job description. There’s one hurdle that is rarely discussed outside of getting your medical degree, the financial investment this occupation takes.
People often buy into the misconception that being a doctor translates to “living on easy street.” Making a comfortable living in the medical profession is an eventuality, it is not immediate. First, you have to pay off the debt you incurred from your education and training, then it’s likely you’ll need to relocate for your fellowship and your first job. Not to mention the transition into private practice.
This article can help you with at least one of those expenses. We’ll spend some time discussing how a small business line of credit can be used to help you start your own practice.
Hanging Your Shingle
Acquiring medical equipment is a large part of what goes into establishing a private practice. There are two ways to go about it.
- Finance the purchase through a bank or lender
- Rent the equipment you need
The best strategy is to apply a collaborative funding plan. Meaning, you rent the equipment that will need consistent updating and finance the remaining items.
Advancement is an ongoing reality in the medical field. For that reason, certain machinery becomes obsolete or is updated. Renting these items is a better way to protect your bottom line in the long run. Equipment like wheelchairs and exam tables are a different matter. These items remain relatively consistent so it makes sense to set up long-term financing. There’s just one problem: remember the debt you’re already carrying around from your education and relocation? It can make renting or financing very difficult.
Since traditional lenders and rental agreements often rely on credit and collateral, if your credit is sub-par, the chances of getting the money or rental rate you need are slim. Before you throw in the towel on the dream of running your own practice, try looking at financing from a different angle.
Get Credit Where Credit is Due
A small business line of credit can help you get the money you need to rent and/or finance your equipment cost. It works like a professional credit account. You qualify, apply, and have a pre-set spending limit to use at any time for anything.
You can access and draw from the account when you need it. When you are ready to purchase equipment, simply use your small business line of credit to pay for the items. Use it to put a down payment on rented equipment or buy a big ticket item upfront and pay it off in monthly installments. Whatever you do, a credit line comes with longevity built-in.
After you pay off your purchases, you can reuse the line as often as you need to. There’s no need to re-apply and sticking to the payment schedule helps you avoid additional debt. It’s the perfect solution to help you get your practice off the ground.
