Setting up an independent place of practice is something most doctors will aspire to do over the course of their medical careers. Your clinic gives you a sense of ownership, pride, independence, and flexibility to manage things the way you want.
Opening a clinic requires considerable funds and if you are hard-pressed for the same, this article can help by explaining how a Business Loan can help you set up that independent clinic you’ve always wanted.
A Guide to Business Loans for Doctors
Doctors can avail of a Business Loan after comparing lenders online, researching their loan terms and conditions, eligibility criteria, documents, etc. and then deciding which lender they would like to approach. Choosing the one that meets your financial needs and offers a greater advantage on interest rates is advised.
You can also apply for a Personal Loan online; as the end use of a Personal Loan is not specified, you can use it to set up a clinic. However, the interest rate for these loans is usually high so keep an eye on that before you make a decision.
What are the Features of Business Loans?
A Business Loan can help you set up your clinic. And its features are as follows:
- You can get a Business Loan without any security or collateral.
- Whether you want to set up your clinic or expand or renovate it, you can use the loan as per your requirements.
- The documentation is minimal for a Business Loan.
- Some lenders like Poonawalla Fincorp offer instant loan approvals; you do not have to wait to get your clinic going or keep waiting for a loan approval.
- Lenders offer flexible repayment tenures; depending on the amount you borrow and your expected cash inflow, you can choose the term at your convenience.
How to Use a Business Loan?
A Business Loans for opening a clinic can help you cover many expenses; some of them are listed below:
Pay Legal Expenses
Setting up your clinic would require you to apply for approvals from the local authorities and register your clinic. Getting all these approvals and the registration process would involve some charges.
A Business Loan can help you pay for those legal expenses to set up the clinic.
Buy Equipment
Depending on your area of specialisation and the kind of clinic you want to set up, you would require some equipment.
A dentist will need a dental chair and other equipment related to dentistry; apart from that, all clinics will require basic things like printers, computers, telephones, etc. The loan can help you procure all these items.
Pay for The Premises
Whether you want to rent a place or buy one, you will require funds for it. You will have to make changes and add furniture and furnishings to get the premise ready; turn it into a clinic.
With a Business Loan, you can pay for all these expenses too.
Hire a Team
To run a clinic, you will need a team of people. And it would include a receptionist, an assistant (depending on your speciality), cleaning staff, etc. You may need to hire some junior doctors and nurses too.
Your clinic may require some time to be up and running, but you will have to pay the salary to your staff from the first month; a loan can come in handy in this situation.
Manage Cash Flow
As we discussed above, inflows from the clinic in the first few months may not be sufficient to cover all costs to keep your clinic running.
A Business Loan can help you manage your cash flows and give you adequate liquidity in the early days.
Documents Needed to Apply for a Business Loan
The documentation process for a Business Loan is simple. Required documents vary based on the lender policies; below are the basic requirements for a Business Loan:
- You will have to submit basic KYC documents to establish your identity
- Business address proof is also required
- Financial documents like the Profit & Loss statement and balance sheet
- Latest two years’ Income Tax Return
- Bank statement
- Medical registration certification
Conclusion
With the right loan, you can set up your clinic and run it smoothly; a lack of funds should not hamper your ambitions. Choose the right lender after some research and compare various offers before you make a decision. Happy healing!