You’ve finally made it. You have your degree, you’re licensed to practice medicine, and you’re ready to open up your very own private practice. But there’s just one problem: you need money to get started. Whether it’s for office space rental, hiring staff, or stocking up on supplies, the costs of starting a business can be pretty high – and they usually come all at once. That’s where loans for doctors come in handy. By taking out a loan specifically designed for medical professionals like yourself, you can get the financial assistance you need to get your business off the ground without having to worry about putting yourself into debt or defaulting on payments down the road.
However, not all loans are created equal – which is why we’ve put together this list of the best loans for doctors. Whether you want to get your practice up and running or even use it as a means of expanding an already-established business, there’s sure to be something on our list that can help you with all of your financial needs.
1) Flexible Repayment Options
One of the most dreaded or stressful aspects of taking out a loan is making sure that you can actually afford the payments. With most traditional loans, you’re given a set payment plan and are required to make those payments on time, every month – no matter what. This can be tough for small business owners or entrepreneurs who aren’t yet bringing in a steady income. Thankfully, there are now plenty of lenders who offer much more flexible repayment options for doctors.
You can often find loans with interest-only repayments or even deferred-payment options which allow you to put off repaying the loan until your practice is generating enough revenue to cover the costs. This combined with easy qualification requirements makes these loans perfect for any doctor looking to start their own practice from scratch. So, if you’re looking for an alternative to expensive bank financing or commercial lines of credit, these new types of loans might be just what you need!
2) Super Affordable Interest Rates
Banks and other financial institutions typically offer loan rates based on the prime rate plus a markup based off of your credit history. This means that if you want to get a loan through a bank, you’re going to have to be in excellent credit standing or face extremely high interest rates. By contrast, loans for doctors tend to have much lower interest rates, since they’re designed specifically for medical professionals.
But why lower interest rates? Well, banks know how well doctors tend to do financially, so they’re willing to give better terms. They understand the value of a doctor’s training and know that physicians are less likely to default on their loans. For doctors, this is great news because it means they can save money on interest payments for both student loans and future mortgages or business loans. And since banks are more willing to work with them, getting approved for a loan in the first place tends to be easier.
3) No Collateral Required
Being a business, banks require collateral for any loans they provide—a sort of “insurance policy” that helps to ensure they get their money back. This could mean anything from a car to a house to valuable stocks. But when you apply for a loan as a doctor, you don’t need to provide any collateral whatsoever. That’s because the bank has confidence in the fact that you’ll be able to pay back the loan whether you decide to go back into practice or pursue another career path entirely.
In essence, this means that you can take out a loan for whatever your needs may be, whether it’s purchasing equipment for your new office space or paying for tuition to complete additional degrees and licenses.
4) Refinancing
While many people think refinancing only applies to mortgage loans, the process can also be used to consolidate debt. To refinance your current student loans, all you need to do is call up the lender and ask about refinancing. The process itself will vary depending on the type of loan you currently have but typically includes converting your existing balance to a lower interest rate. When deciding whether or not to refinance, it’s important to consider all possible scenarios. For example, if you currently have private student loans at a 6% APR and plan on graduating soon, then refinancing might not be worth it.
In this case, it would be better to just start making payments on the loans and get them paid off as quickly as possible. However, if you currently have federal student loans at a high interest rate like 8% or 9%, then refinancing could save you quite a bit of money in the long run. In general, it’s always best to compare rates from multiple lenders before deciding whether or not to refinance your student loans.
5) Fast Approval Time
Your private clinic is in dire need of an upgrade – your machines are old and outdated, your staff is overworked, and your patients are starting to go to competitors. What you need is an infusion of cash to help boost your business. You could get a bank loan, but you’re not sure if you can qualify, and it’s going to take too long in any case.
A private lender will probably give you the money, but at exorbitant interest rates – since your business is already on its last legs, you are not in a position to negotiate favorable terms with them. What do you do? Easy: go for a professional loan.
A professional loan is a type of business loan that is typically used by small businesses. The terms of the loan are usually more favorable than those offered by traditional lenders, and it is easier to qualify for this type of loan.
In fact, the whole process is much faster – you can get your loan within a week of application. This is not surprising, as professional loans are geared towards people like you who need the money urgently. Another appealing feature of professional loans is that they do not require collateral, which means there is less paperwork and less hassle for you.
Final Verdict
The bottom line is that professional loans are a great option for small businesses who need access to quick capital. The terms of the loan are more favorable than what you would get from a traditional lender, and it is easier to qualify for this type of loan. If you need money urgently, then a professional loan should be at the top of your list.