How Personal Loans Can Be Utilized in the Medical Field

Running your own medical practice — or trying to get one off the ground — is a costly venture. Especially during times of economic uncertainty, keeping a steady cash flow while accounting for expensive equipment, real estate costs, and other expenditures can be challenging. 

While there are financing avenues for medical professionals, including traditional bank and SBA (Small Business Association) loans, these options often lack convenience, have complicated underwriting standards, or take too long. With online lenders, however, medical professionals can obtain personal loans for all of their business needs, often with less hoops and hurdles to go through.

So how can personal loans be put to use in the medical field? Here are just some examples. 

Starting a Practice

Of course, one personal loan, even at the maximum amount, won’t fund an entire practice. However, there are a lot of start-up costs to consider (outside of the major real estate investment) that a personal loan could go a long way to assist with. Everything from medical supplies, to computers/software, to even office furniture needs to be accounted for. Taking out a large loan to pay for all of the physical expenses can leave all your remaining working capital for things like staffing, marketing/advertising, and other expenses.

Plus, while most big bank lenders will require a laid out business plan ahead of loan approval, online providers typically do not, simplifying the process and allowing borrowers to use the funds however they see fit for their business.

Joining an Existing Practice

Of course, physicians don’t need to start a practice from scratch — they can also buy into an existing one. Whether it’s a buy-in, entering into a partnership, or buying out another partner, personal loans can assist physicians who are strapped for cash, but will be able to pay off the loan more easily once they start generating income.

If a physician intends on buying out an entire practice, they would require a lot more funds to do so, but can receive ample aid from a large personal loan. And while the process is still expensive, a physician would be able to avoid a lot of the burdensome costs that come with starting a new practice from the ground up. 

Once a practice is established, there is the matter of buying or replacing expensive medical equipment. Equipment is a major investment for a practice, whether it's needed to perform the major duties of a physician or obtained in an effort to expand services and as a result, bring in more patients. A personal loan can fund all or part of an expensive piece of equipment, whether it’s heavy machinery or multiple smaller items. 

A personal loan through an online provider can be particularly beneficial in the instance that a critical piece of equipment breaks down and requires immediate replacement, as big bank and SBA loans typically do not provide next day funds. 

It may not be one of the first use cases you would think of, but like most Americans, those in the medical field also struggle with mounting debt. A personal loan for debt consolidation is a great option to cobble together many existing debts into one simplified payment, potentially with a lower interest rate. Potential borrowers who have strong credit, and steady business flow can benefit from competitive rates with flexible terms, which allow them to lower their monthly repayment. In addition, those who’d prefer to pay off the loan quicker can choose larger monthly payments to save on total interest. 

Bottom Line

Starting or running a medical practice is a career goal for many physicians. Making sure the endeavor is successful takes effort, time, and of course, lots of money. While a personal loan is just one piece of the funding puzzle, it can be utilized in multiple ways, providing physicians with the flexibility they need to cover start-up costs, replace a vital piece of medical equipment, consolidate debt, and more. 

With Fiona, medical professionals can get matched with personalized loan offers catered to their specific needs and situation, and compare offers from multiple providers all in one convenient place.