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Small Business Loans for Medical Industry

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Medical Business loans Sydney and NSW

Medical and Dental Practice Loans

Business loans for doctors, dentists, and medical practitioners.

If you’re a doctor or dentist and run a small business, the most significant barrier for small business growth is access to finance according to the Australian Small business and Family Enterprise Ombudsman.

About a third of small business loans get bank loans rejected. Historically 83% of small businesses have relied on the major banks for their funding requirements, but this is changing.

Many more have not bothered to apply as they have been told that they have significant equity in real estate their application will fail. “The big four banks are not the only game in town”

Capify provides unsecured loans up to $300,000 over 15 months to offer businesses access to capital and look at the most appropriate funding solutions in the pursuit of growth and success.

Below is a guide that provides insight into small business for accessing capital and looks at small business funding solutions and you should always seek the professional advice of your accountant or financial advisor.

This guide has been created to help Capify small business customers when they are looking for a working capital injection to get them through an urgent short-term need or address ongoing business requirements. Remember, small business is the engine room of the economy.

Medical, Dental, Medical Practice Loans:

Where to Get Business Loans for Doctors?

Doctors who own their practise can generally qualify for most medical practice loans because of their high earning potential, healthy net worth, and stable revenue.

Cash flow is the oxygen of business or the heartbeat of any business. The more effectively you manage it, the more successful and profitable your practice will be.

It sounds simple, but how can health professionals achieve this?
An excellent place to start is by consolidating your banking with one provider.

This will give the practise greater control over receiving payments and will also provide business advisers with a clearer picture of the practice so they can offer more support.

Capify Merchant Cash Advance provides an advance by linking payment channels like EFTPOS, BPAY, direct debit and a secure online solution like HICAPS, that interface quickly with health funds, will improve your patient’s experience, save you time and help reduce staff administration.

Communicate and display payment terms before treatment.

Encourage staff to collect cash payment on time by coaching them to handle difficult conversations and recognising their successes.
Consider payment options for more expensive treatment, such as credit card payments that spread the cost over 30 days or breaking up procedures so patients can pay in instalments.  Emailing invoices to patients keeps them in front of mind and easy to access.

If relevant, make it easier for patients to pay their invoices from the comfort of their home or office online via an e-commerce platform
Brown adds a note of caution when it comes to offering payment options. While it’s essential to cater to your patients’ various situations, it is also necessary to understand the cost to the practice of providing these options.

For example, the price of a 5 per cent discount for payment within 14 days will slice $50,000 annually from the bottom line of a business with a $1 million turnover. But countering this is the cost of managing overdue invoices.

“You have to work out whether you are prepared to develop and manage a collection plan for overdue invoices and balance the impact on your practice of these delays in payment,” she says.

On the expense side, Brown encourages businesses to review terms with suppliers and create a cash flow forecast, factoring in regular monthly payments, any seasonality and growth projections. “If you can afford to pay a large sum early or upfront, you should – absolutely – negotiate a discount.

Staff can be encouraged to save money by setting expense targets, monitoring them frequently and tying remuneration to outcomes. This engages everyone in cost control, and employees don’t necessarily have to be rewarded with money. “Often, recognition in front of peers or a thank you card is a welcome reward.”

Brown suggests a three-pronged approach to cash flow management – a balanced mix of working capital sourced from turnover, supplier credit and bank debt, and regular reviews to help monitor costs.

She says that a cash flow forecast and business plan are both imperative for a healthy business.

“A business plan provides a long-term view, with investment phases and goals mapped. A cash flow plan enables a practice to ensure that cash flow is maintained and appropriate buffers put in place to further position a practice to ride out economic cycles and ensure sustainability.” Your banker will be able to give you further advice on how to best maximise your cash flow.

Running your medical practice requires sound financial knowledge and management skills. Whether you’re establishing a new medical practice or looking to buy an existing one, you must understand the financing options that are available to help you run a successful business. We know life as a healthcare professional can be busy; that’s why we’ve brought together all our tools, tips, calculators and products tailored to your industry.

Whether you’re just starting your career or looking to secure your financial future, we’re here to help you get where you want to go. A new practice can possibly be a cheaper option than buying into an existing practice though the cost will vary according to personal preferences and location. It’s estimated that in regional Australia, for example, you could pay as little as $30,000 for a fit-out, but $100,000 is probably a more realistic ballpark figure. In metropolitan areas, the ballpark is closer to $200,000 rising to as much as $500,000.

However, since you don’t have an established patient base, you could experience cash flow problems while you’re building the business. Bringing other GPs into the practice can help with the expenses. Contracting doctors pay about 30 per cent of their income to the practice owner to cover administration, staffing, and other costs.

It would make economic sense to have to four or five other doctors working with you, but it can take time to find GPs that fit the culture of your practice. On the other hand, if your premises only have space for one or two doctors, you’re putting a limit on your future income. Finding the right balance can be a challenge.

Some medical finance providers will tailor monthly loan repayments, so they start low and then rise in line with increasing cash flow. There are several business loan options available for Australian medical professionals, so let’s take a closer look at what those loans are and how they can benefit your business.

How can my business benefit from a loan?

Business loans for medical professionals can provide funding for a wide range of purposes, such as:

  • Startup finance to help you establish a new practice and fit out your business premises
  • Funding to purchase an existing practice
  • Money to buy or upgrade business equipment
  • Managing ongoing cash flow needs
  • Covering the day-to-day costs of running your business, such as paying staff and marketing costs
  • Meeting the expense of extending or expanding your practice

Capify Medical Business Loan knows that your time is essential, so our experienced Relationship Managers come to you, simplify the loan process and help you to acquire your practice quickly and easily.

We cover small business loans Australia Wide;

After your practice purchase is complete, your Capify Loan Relationship Manager remains at call with quality service and specialist industry knowledge. At Capify unsecured business loan, we offer customers high quality, personalised service is our priority.

Capify is Australia’s first alternative funder with over 15,000 loans to customers, you will have access to financial services for every aspect of your life.

Whether you are purchasing a new medical practice, a home, medical equipment or just looking to buy a new business car, Capify business loan will assure that you receive the highest level of service, as well as the best financing option specific to you and your occupation.

With more than 11 years of industry experience, Capify, is an Australian leader in finance for healthcare business.  Our extensive industry knowledge means we can provide specialist advice for the finance options available to medical, dental and healthcare professionals like you.

Industry expertise

Capify is a specialist business within a small business. Importantly, you get the benefit of working with a specialist who not only understands your business and the healthcare sector but can also connect you with a full range of financial services for every aspect of your life.

No deposit required Unsecured Business Loan

For approved customers, Capify can lend up to 100% of the purchase price of your practice premises, equipment, motor vehicle or cashflow needs with no additional security required.

That’s why our response time is fast, and paperwork is kept to a minimum. We know you are short on time and often work unusual hours, so a Capify specialist can meet at a time and place that suits you.

To reach your local specialist, call us on 1300 760 930 or request a quote or an appointment.   Cash flow is the oxygen of business. The more effectively you manage it, the more successful and profitable your practice will be.

It sounds simple, but how can health professionals achieve this? An excellent place to start is by consolidating your banking with one provider. This will give the practise greater control over receiving payments and will also provide business advisers with a clearer picture of the practice so they can offer more support.

“Linking all patient payment channels like EFTPOS, BPAY, direct debit and a secure online solution like HICAPS, that interface quickly with health funds, will improve your patient’s experience, save you time and help reduce staff administration,” she says.

Also introducing simple strategies can encourage payment of accounts as Brown suggests:

  • Communicate and display payment terms before treatment.
  • Encourage staff to collect cash payment on time by coaching them to handle difficult conversations and recognising their successes.
  • Consider payment options for more expensive treatment, such as credit card payments that spread the cost over 30 days or breaking up procedures so patients can pay in instalments.
  • Emailing invoices to patients keeps them in front of mind and easy to access.
  • If relevant, make it easier for patients to pay their invoices from the comfort of their home or office online via an e-commerce platform

Brown adds a note of caution when it comes to offering payment options. While it’s essential to cater to your patients’ various situations, it is also necessary to understand the cost to the practice of providing these options. For example, the value of a 5 per cent discount for payment within 14 days will slice $50,000 annually from the bottom line of a business with a $1 million turnover. But countering this is the cost of managing overdue invoices.

“You have to work out whether you are prepared to develop and manage a collection plan for overdue invoices and balance the impact on your practice of these delays in payment,” she says.

On the expense side, Brown encourages businesses to review terms with suppliers and create a cash flow forecast, factoring in regular monthly payments, any seasonality and growth projections. “If you can afford to pay a large sum early or upfront, you should – absolutely – negotiate a discount.

Staff can be encouraged to save money by setting expense targets, monitoring them frequently and tying remuneration to outcomes. This engages everyone in cost control, and employees don’t necessarily have to be rewarded with money. “Often, recognition in front of peers or a thank you card is a welcome reward.”

Brown suggests a three-pronged approach to cash flow management – a balanced mix of working capital sourced from turnover, supplier credit and bank debt, and regular reviews to help monitor costs.

She says that a cash flow forecast and business plan are both imperative for a healthy business.

“A business plan provides a long-term view, with investment phases and goals mapped. A cash flow plan enables a practice to ensure that cash flow is maintained and appropriate buffers put in place to further position a practice to ride out economic cycles and ensure sustainability.”

Medical and dental professionals play a crucial role in keeping us healthy. Much goes on behind the scenes in medical and dental practices that most people don’t see. One of these is finance. Here we look at some of the ways healthcare professionals use dental and medical business loans. We will also explore some of the types of medical and dental business loans.

Working capital for medical and dental practices

For an existing medical or dental practice, a short-term cash flow shortage could arise for several reasons. In this situation, a short-term loan can provide a solution. Examples of loans for overcoming short-term cash flow needs include a business overdraft, line of credit or an unsecured business loan. The funds borrowed can be used for a range of purposes, such as paying staff, recruitment and training, and covering day-to-day overheads. Learn more about working capital and why it’s essential to small business success.

Purchasing new equipment

Besides the skill and experience of medical and dental professionals, having the right gear makes it possible to deliver optimal results. Dental and medical business loans make it possible to get state-of-the-art equipment. Examples of loans for purchasing dental and medical equipment include equipment finance, hire-purchase and bank term loans. With some loans, the material itself is the collateral for the loan, so they don’t require property as security.

Renovating or expanding waiting areas or practice rooms

Time and normal wear and tear make it necessary to restore waiting areas and medical practice rooms. Also, a growing practice will need to expand as it’s patient list grows. Medical and dental business loans can make renovation and expansion possible. The types of loans available to achieve these outcomes include bank term loans and commercial loans.

Purchasing a practice or commercial property

Buying an existing practice or premises are common reasons to take out dental and medical business loans. For example, a dentist might want to purchase a current dental practice to expand her business. In another case, a doctor might want to buy a property so he can own instead of the lease his clinic premises. In these situations, a commercial loan will be the way to get the funding needed for more significant financial needs.

Running marketing campaigns for medical and dental practices

Medical and dental practices seeking new patients will want to run marketing campaigns. Again, a business loan can provide the funds needed for this type of project. Examples of the kinds of loans for funding marketing campaigns, including bank term loans and unsecured loans. Learn more about getting business loans for marketing purposes.

Business overdraft facility

A business overdraft facility is one way to meet the financial needs of medical and dental practices. With a business overdraft, you can run a negative balance on a regular bank transaction account up to a predetermined amount. You only pay interest on the money that is overdrawn. For example, if you are only using $10,000 of a $25,000 business overdraft facility, you only pay attention to the $10,000. Besides, there is an establishment fee and ongoing accounting fee.

With a higher interest rate, a business overdraft is more suitable for short-term needs, such as covering cash flow shortages. As revenue increases, the account balance increase and the overdraft can be reduced. This makes it a flexible way to overcome short-term cash flow issues. Learn about how a business overdraft works.

A business line of credit

Like a business overdraft, a business line of credit gives access to a pool of funds up to a specific limit. Funds can be taken from the line of credit when needed and paid back when cash flow improves. However, it’s not automatically attached to a transaction account. Usually, a business line of credit has a higher minimum amount and a lower interest rate. This makes it a more suitable option for long-term financial needs. Get full details on how a business line of credit works.

Equipment finance

Equipment finance is a suitable option when purchasing specific equipment with the funds borrowed. With some types of equipment finance, the item purchased acts as collateral for the loan. If the loan can’t be repaid, the lender can take the equipment and sell it to get the funds owed. Learn more about equipment finance.

Bank term loan

This is what comes to mind when most people think about a bank loan. Typically, a bank term loan is for three to five years. Being secured by a property, the interest is competitive. With a bank term loan, you make regular repayments, such as monthly, over the term of the loan. The main shortcomings with a bank term loan are the amount of paperwork required, and the time it can take to get an answer, which can be up to two months. For a medical or dental practice loan, a bank will usually require collateral in the form of residential or commercial property.

Commercial loan

This is a long-term loan that is usually used for large purchases, such as equipment, real estate or a competing practice. Business loans are secured by residential or commercial property. With the reduced risk to the lender, the interest rate can be very competitive.

Unsecured business loans for dental and medical practices

Business Loans Medical is one of the most straightforward medical or dental business loans to get. Online lenders make the process quick and easy.

Unsecured loans Business Loans Medical are short-term, so are usually used to boost working capital and solve cash flow challenges. The ease and speed of getting an unsecured business loan make it a popular loan option for business dental and medical professionals.

Your banker will be able to give you further advice on how to best maximise your cash flow.

Speak to a lending specialist today on 1300 760 930 to get funds in 24 hours or start your application and apply now.  If you have any questions you can go to our customer help center or read our FAQ’s.

 

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How Capify helps Medial and Dental businesses acquire funding

Capify provides fast business loans in Sydney and is one of Australia’s leading finance firms that obtain the purpose of providing funds and assistance to any type of business who require it.

They offer two types of loans or credit products including; Merchant Cash Advance and Capify small business loan.

Capify is different from competitors with their ideal NSW business loans, and their ability to see potential success in businesses without being bias as much as possible on previous credit ratings.

Capify is an alternative to the big bank and does not offer a line of credit or interest rates, instead, they work with a fixed rate. Loan terms range from 3 months to 12 months and their loan amounts range from $5,000-$300,00.

How could small businesses in Sydney and NSW use Capify business funds?

  • Pay Bills
  • Marketing
  • Hiring extra staff
  • Purchasing Stock
  • Improve Cash Flow
  • Purchasing a Business car or Truck
  • Renovating or Expanding the business
  • Upgrading or Purchasing Equipment

Why choose Capify?

The great news is that Capify’s application costs are free, we don’t charge you when you submit an application for a small business loan in Sydney. It’s obligation-free and you can commit whenever you are ready.

A great financial product that Capify can provide is Merchant Cash Advance, where this revolves around businesses gaining a lump sum of money and repaying it through minor percentages of their EFTPOS transactions. This would greatly benefit the business as it would prevent cash flow shortages, thus they are able to have the cash to pay debt payments, expenses, and unexpected costs.

Furthermore, enterprises are also introduced to the option of Sydney business loans that Capify can provide, increasing capital, thus increasing cash flow. Alongside this, they deliver expert advice that contains knowledge and techniques on how to improve cash management to assist in keeping your business as healthy as possible.

Capify is Australia’s first small business lender since 2008, we have built and maintained a google review of 4.5/5.

Speak to a lending specialist today on 1300 760 930 to get funds in 24 hours or start your application and apply now.

 

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FAQs

What are your interest rates?

We don’t use interest rates for our funding solutions.

Instead Capify offers an agreed total payback amount. The payback amount depends on the type of business you operate and the term you require the business finance for. This way your business knows up front the total costs, making managing your cash flow easy.

Does Capify have an office branch in Sydney?

Capify is a fin-tech and purely operates online. We do not have a physical branch. However, our office is in Parramatta.

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