The central purpose of medical practice loans is to give medical professionals the option of several products to suit their small business needs best.

For example, one of the biggest challenges of medical practices is the amount of time it takes to receive full compensation or only small amounts of cash coming in at a time. This can be especially troublesome when business slows down, or essential medical equipment becomes outdated.

These dilemmas can be solved by several products, like business lines of credit, medical equipment financing, business term loans, or accounts receivable factoring. Equipment financing might be the most sensible option if the medical equipment is costly and used for at least three years.

On the other hand, a business line of credit is designed to cover short-term expenses, like monthly bills or inventory.

However, if you’re waiting for sizable insurance reimbursements, you would sell the unpaid receivables for a discount. Instead of waiting weeks (or even months) for compensation, you’d get cash in just a few business days.

It is now the responsibility of the factoring company to collect the payment from the insurance carrier. You get paid the remainder of the first sale minus fees when the payment is received.

If you have subpar credit or rocky cash flow, you might consider a merchant cash advance instead. This highly accessible option allows you to borrow against the strength of your debit and credit card sales.

For many doctors, this is the preferred payment method for their patients. You could theoretically access plenty of cash to get through a slow season without making substantial payments until business picks up.