If you’re ready to purchase a commercial building for your medical practice, you have a variety of options for financing the purchase.
Doctors and other medical professionals are able to obtain some of the best commercial loan rates in the industry because banks are eager to earn your business.
But it’s important to choose a commercial loan that’s right for your practice.
Longer-term debt is best and will provide you with the lowest interest rates over the life of your loan.
While it may be tempting to use a line of credit to purchase your medical building, a long-term installment loan is almost always a better option.
There are three main types of commercial loans you can obtain to purchase your medical practice:
You can participate in the 7(a) loan program through the SBA, which offers 100% financing for the purchase of an existing building or the construction of a new building.
You can secure non-SBA medical practice financing through a private lender with rates as low as 3% interest for a 10-year term, or…
You can refinance an existing medical practice on a 15-year fixed rate.
Be sure to work with a banker you trust, shop around for the best rates on private loans, and always read the fine print:
Make sure you understand the terms of a joint loan if partnering with others in your practice, as well as what happens to the loan if you decide to leave the practice.
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