You're ready to venture out and start your clinic in Texas, but medical practice funding still seems a mystery. What medical practice startup costs do you need funding for? How much does it cost to start a medical practice? You need answers to these questions before you can start figuring out how to get a loan to start your medical practice.
Here's what you need to know.
First, Evaluate Medical Practice Startup Costs
Any funding source wants to see that you're well aware of how much it actually costs to start your practice, but the good news is that medical practices are prime candidates for loans. They're low risk and generally profitable within 1-2 years.
Here are some practice startup costs you need to add up before pursuing a loan:
Acquiring/remodeling an office space
Licensing, fees and insurance
Furnishing, equipment, medical supplies & software
Website & marketing
Payroll and benefits
MGMA.org offers a more detailed checklist for medical practice startup for MGMA members.
Price these out, but know that how much it costs may surprise you. A new medical practice can expect to spend over $70,000 on startup in Texas. In urban areas that cost will be higher. Write all of this out in your formal business plan.
How to Get a Loan to Start Your Medical Practice in Texas
When getting medical practice funding in Texas, you won't just head to the bank for a normal loan. You have many options.
1. SBA 7(a) Loans
These loans are insured by the Small Business Association. This helps you get better terms and increases likelihood of approval if your credit is less than stellar.
2. Medical Practice Business Loans from Banks
You can also go to the bank directly. This is a good option if you are a long-time customer.
3. Non-Bank Term Loans
These loans have a specific repayment schedule over a specified amount of time one to 25 years.
4. Short-Term Loans
A short-term loan is a type of term loan that has a very short payback window, around 1-2 years.
5. Business Line of Credit
These flexible loans give you a max amount you can borrow, but you only borrow when and how much you need.
6. Equipment Financing
Medical Practice Funding
To obtain medical practice funding in Texas follow these steps:
First, price out all of your startup costs.
Then explore the types of loans that may be right for you.
If you’re still not sure where to start or where to go, contact an agency that’s experienced with medical practice startup & financing.
99MGMT helps physicians with practice startup (planning, funding, and more) as well as practice management once you get going. However, there are other agencies that only assist with the startup process if you want short-term assistance.
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