Fueling Your Doctor’s Practice Just Got Easier With Online Loans
As the COVID-19 pandemic continues, many medical offices are struggling to cope with rising prices for equipment and supplies, rent, and other expenses. One way to fund expenses or expand a practice during this difficult time is with a practice loan that leverages assets for future expenses.
Janell Andersen, vice president of Key Bank in Buffalo, New York, advises physicians in private practice to consider a practice loan that would allow physicians and staff to finance their immediate practice needs or finance debts during the pandemic period.
Office loans, she said, can be used for a range of needs, including general capital for day-to-day operations, the purchase of supplies and inventory or medical equipment, payment or expansion of office space, acquisition of another firm and refinancing of commercial debt. Doctors can also apply for a loan to pay for the costs of starting a new practice.
Andersen said a workout loan can also be used to fund employee disability, a significant issue during COVID-19 exposures. Key Bank owns Laurel Road, an AMA’s preferred provider of physician loans, which offers a range of customized lending solutions to help you cover the costs of running and maintaining a business. Learn more about Laurel Road’s personalized financial solutions for physicians.
Exercise loans can be structured as a need-ready line of credit or a term loan that can be used for longer-term funding based on a specified period and various conditions. Loan amounts range from $ 50,000 to $ 500,000, but the program has no formal limit and can therefore be used to fund other amounts as needed, she said.
Lines of credit are renewed annually and term loans are negotiated for a specific period, but are not negotiated for the property. The program assesses practice assets and income history. Interest rates are based on usual factors such as loan amounts and terms.
“The biggest benefit of the Laurel Road program is efficiency,” said Andersen. “You don’t have to leave the office to be interviewed for a loan. The application process takes place online and must be completed with electronic signatures and verification.
Andersen said the program evaluates all assets based on information provided by the applicant and verified by Laurel Road.
Laurel Road also offers a variety of other business loans, including student loans and student loan refinances, personal loans and mortgages, and loan financing for medical students and residents as well as physicians.
Laurel Road began offering loans for medical practice in June 2020, according to Andersen. Active AMA members receive a 0.25% discount if approved for a practice loan with Laurel Road.
All credit products are subject to credit approval. The 0.25% WADA Member Interest Rate Discount is available for approved loan applications from a business owned by an active WADA member. This interest rate reduction will be deducted from the standard rate for which the loan applicant would otherwise be approved. Offer cannot be combined with other offers. Laurel Road is a trademark of KeyBank NA, FDIC member.
Find out how AMA Member Benefits PLUS saves you money on a variety of practice needs.