Monthly Archives: July 2021

Using an SBA Loan As A Temporary Tool

Are you starting up, expanding, purchasing, or just need a boost in cash flow for your pharmacy, veterinary, dental, optometric, or healthcare practice? Are you lacking the necessary capital or down payment?  Don’t want to include your personal residence as collateral?  Having a difficult time qualifying for a conventional loan for your pharmacy or practice start up? Many of the best small business owners find that they lack collateral, have not been in business long enough, or have lower credit scores than their colleagues, which could put you at a disadvantage. New business owners can struggle to come up with large amounts of cash for down payments, and may only have projections of their future earnings, which often is not enough to qualify your startup or healthcare practice acquisition for a conventional loan. Fortunately, you have another option—you can use a Small Business Administration (SBA) loan in the meantime!

 

SBA loans offer you unique options, such as providing an opportunity for the seller to carry a portion of the down payment or financing, giving you refinance options over a longer term that can provide an immediate increase in cash flow, or provide the chance for you to acquire real estate with your pharmacy or practice acquisition. When you work with a specialized healthcare lender that provides both Conventional & SBA financing, you have so many more options and resources available.

 

While an SBA loan will get you started, off the ground, and provide a temporary solution, they also have drawbacks. Usually, these loans come with higher rates, and these rates are often variable. This gives you even more motivation to demonstrate strong management skills and business success, boosting the credit and financial strength of your small business. After 24 months, you can refinance to take advantage of lower, fixed-rate, conventional loan—yet another chance to get an immediate boost to cash flow, saving you thousands over the term of your loan.

 

Are you ready to bridge the gap between “new business owner” and “seasoned healthcare business owner” today? Call US Medical Funding for an effective loan solution for your pharmacy or healthcare practice needs!