In order to obtain working capital to start your medical practice, it’s important to specify exactly what that capital will be used for. By defining your needs in terms of pre-opening, opening and ongoing operational expenses, you’ll be able to find a capital funding lender that’s right for you.
During pre-opening, you may need capital to purchase or rent office space, buy equipment, complete market assessments, complete the credentialing process, and obtain the appropriate insurance. Once your practice is open, you’ll need capital to help cover the initial costs of employee salaries, rent or mortgage payments, marketing and advertising, and the cost of retaining lawyers, accountants, and other experts on your team. As your practice starts to generate revenue, you may still need capital funding to maintain a steady cash flow and cover emergency expenses. In addition to the ongoing expenses of your practice’s daily operations, capital funding can be used to replace outdated equipment, cover employee benefits, and even assist with the expenses of a sudden lawsuit or malpractice case.
Before approaching potential lenders for capital funding, do your research and create an anticipated budget for your pre-opening, opening, and ongoing operational costs.
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