Physicians increase use of Alternative loans

Secured asset based loans on equipment, and unsecured funding based on Gross sales are two of the most recently used alternative funding options employed by Physicians.

For the reasons cited in recent posts, Physicians continue to increase their usage of alternative loan products. Continued escalating malpractice insurance premiums and the constant threat of permanently cutting Medicare Reimbursement rates have forced many Physicians, Dentists and Chiropractors to seek alternative financing.

Since almost all business have sales, financing based on the Gross Sales of the business has become increasingly popular. One additional reason for this is that Physicians often initially begin or further their practice through SBA Loans. SBA Loans often require the Physician to sign over all assets, furniture and fixtures of the practice. This make it difficult or impossible for the practice to obtain financing or working capital when they have future needs and requests.

Increases in these alternative funding programs will be more closely looked at in the future.