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You are a medical practitioner and wish to venture into your own enterprise. Numerous banks would approach you with promises of enormous discounts. Getting a business loan might seem to be a cake walk, but just when everything looks rosy you need to pause and reflect. Do you think the financial institution that granted the loan is as reliable as you believe? Are there no hidden costs? Is your interest rate justified? Is there a liability clause that might leave you in tatters in case of an unfortunate default? There are several questions that you need to ask yourself before getting into a deal, the answers to which you will get only through extensive research and expert advices. Healthcare has come up to be one of the most viable business options. Doctors today seem to be keen on starting up their own businesses than working elsewhere. With high costs of medical equipment, opening of a new office, hiring trained staff and the need for ever increasing working capital, a doctor might find it difficult to fund it all alone. The need for financial assistance becomes indispensable. So, if you are just out of your medical school, in residency or are practicing, and you decide to venture into starting your own business, you might need to do a thorough homework and explore numerous funding sources to get the best deal. You would certainly look for a business loan that has a low interest rate and the down payment is negligible. Most Medicos find it better to use their future income than their current or saved income as an investment. All time high lending to Healthcare Entrepreneurs Need for Business loans for doctors have experienced a steep rise during the past few years. The year 2011 saw the sanctioning of $649.8 million in 1516 loans to medical practitioners, as compared to the 625 SBA loans approved in the year 2001. The numbers of approved loans are ever increasing and these business loans backed by the Federal Small Business Administration are in an all-time high phase. The catch here is that, most of these practitioners fail to harness the full potential of their business by borrowing, without paying attention to the terms and conditions of the lenders. Understand the Need for your Loan Doctors apply for small business loans for various purposes ranging from new practice start up, commercial real estate, improvement, expansion and relocation to equipment purchases and practice debt consolidation. The approval from the financial institution might seem very easy but it is the kind of service and the terms of payment that matters the most in contributing towards the success of your practice as a Healthcare entrepreneur. So striking a good deal might consume a little time but will certainly pay off in the long run.  Be Watchful and Explore Options You being a healthcare entrepreneur should carefully scrutinize multiple banks and financial institutions. Most of the banks would want to lend you but you need to be wary of falling into a bad deal. Look into the hidden costs, processing fees, interest rates and the terms of repayment before finalizing a bank. Review your Debts & Finances The mistake that many physicians commit is that they think they have a good line of credit and thus fail to review their finances once or twice a year. It is always a good practice to look into your financial matters and see if the debt is in order or not. One should apply for a short term loan for their short term needs and a long term loan if the term of loan extends for more than a year. Right use of the funds Seeking financial assistance for meeting your operating costs is not advisable. Some Doctors have the tendency to pay the recurring expenses by using their line of credit. For a start-up venture it might be acceptable but for an established business it is a taboo. You should better look into other areas causing the financial lag. Who knows? A structural change in the functioning of your business might yield productive results. Assess the Return on Investment Investing in technology and keeping at par with the competition is right but calculating the return on investment (ROI) before making these investments is wise. So, if you are looking to get medical equipment financed, you should know how much revenue it would generate and by when. Play it Safe Last but not the least, as a medical entrepreneur you should play it safe. If you default on a loan you should not be held liable and even if there is a liability clause, you should know the extent of your liability and be prepared for it. In short you should do a thorough research on the paperwork involved before applying for these loans. About the Writer Raj Tulshan is a seasoned expert on financial matters. He has consulted and written extensively on matters relating to business loans alternative financing options. Writing comes naturally to him and he has helped a large number of people educating them on issues related to commercial loans, banking and finance. Visit more business loans for women:- http://www.biz2credit.com/small-business-funding/loans-for-doctors.html
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