What are medical practice loans?

What is a medical practice loan?

As the name suggests, a medical practice loan is tailored to the needs of health industry professionals who require business funding. They may need the loan to start a medical practice or to cover operating costs at any stage in the practice’s development.

Medical practices face many expenses, whether they are setting up, well-established, or planning to expand. And, like any dedicated service industry business, a medical practice needs investment to maintain high standards and meet customer expectations.

This is where an iwoca Flexi-Loan can make a big difference to the success and smooth running of a medical practice, whether starting out or scaling. Medical practices can use an iwoca Flexi-Loan to meet their precise needs, with funding available up to £500,000.

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What can medical practice business loans be used for?

Medical practice business loans can be used for a wide variety of including:

• Working capital. This is the money you’ll need to cover all the day-to-day running costs mentioned above, as well as other incidental costs. Healthy working capital and good cash flow are essential for business success.
• Marketing. Once you’ve launched your medical practice, you’ll need a budget for marketing and advertising to raise your business profile and attract customers.
• Medical equipment. Every medical practice will need to invest in specialist equipment.
• Staff salaries. Depending on the size of your medical practice, you may need to employ support staff.
• Premises. You may need to buy or rent consulting rooms.
• Insurance. Every medical practice should have cover for professional liability.  
• Utilities. Water, electricity and other utilities will add to your running costs.
• Refinancing. You may already have loans for starting, expanding or acquiring a medical practice. Refinancing business debt could save you money and put your medical practice on a stronger footing.
• Start-up funding. Having sufficient funds to launch a business is one of the biggest challenges for any enterprise that wants to get off the ground. A loan to start a medical practice is one of the main use cases for healthcare professionals.

Who are medical practice loans suitable for?

A medical practice is a blanket term that describes many different types of medical enterprises and practitioners. It includes professionals in alternative medicine and specialist healthcare sectors, all of whom might need a loan to start a medical practice. Here are some of the professions that can benefit from medical practice loans:

• Doctors and surgeons
• Dentists
• Acupuncture specialists
• Nutritionists
• Massage therapists
• Psychiatrists and psychotherapists
• Eye specialists
• Dermatologists
• Chiropractors
• Homeopathists

How to get a medical practice loan

There are several options to obtain medical practice business loans, and if you’re thinking of starting a new business, you should have a detailed business plan. Many businesses might consider a traditional loan from a high street bank as the first option. However, because banks’ selection criteria are often strict, medical practice loans can be difficult to obtain, especially if you’re a start-up without the right credit score and insufficient collateral to secure the loan. And even if you’re successful, it might take a long time to be accepted for the loan and to receive the money in your account.

Alternative business funding options include crowdfunding and peer-to-peer lending. You could also apply for an iwoca business loan. With iwoca, you can borrow between £1,000 and £500,000 for up to two years, whether to help you launch a business, expand your operations, or simply to keep your cash flow healthy. There is no paperwork to complete, no early repayment fees, and money can be in your account in just a few minutes.

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