Source: Unsplash | Arseny Togulev
Maintaining healthy cash flow is a challenge many small business owners face. However, it can be especially difficult for businesses in the medical field. It may take some time before you can receive payments from patients or insurance companies, stunting your cash flow. If you don’t have enough cash to pay for business expenses, you can apply for medical practice financing.
Medical practice loans can bridge the gap between accounts payable and accounts receivable. There are different types of medical practice financing and you can choose one depending on your goals and needs. But aside from bridging cash flow gaps, here are five other things you can do with medical practice financing.
1. Expand Your Service Lines
Expanding your service line is a great way to increase revenue as it adds another source of income. Patients prefer facilities that offer more services because of the convenience of having their medical needs met in one place. However, expanding your services lines can be costly. You may need to purchase additional equipment, hire and train new employees, and pay for marketing campaigns to promote your new service line. Medical practice financing enables you to fund these expansions to grow your practice.
2. Market Your Services
While treating patients is your number one priority, your medical practice is still a business entity. You’ll need to attract more patients or otherwise, you’ll lose your practice. It’s important to create marketing strategies to promote your services to your target audience. With medical practice financing, you’ll have the working capital you need to market your practice and speed up growth. If your marketing strategies are effective, you’ll definitely see a return on your investment as your business grows.
There are different ways to promote your business. You can develop your own website, create social media pages, sponsor local events, and more. Regardless of the strategy you choose, working capital is needed to implement these strategies.
3. Hiring and Training Medical Staff
As your medical practice grows, the number of patients you treat increases as well. If you’re looking to expand your business, advertise your services, or form a new partnership, know that you may have to hire and train more people. Hiring and training new employees to keep up with business growth expensive. It’s also important to note that it will usually take months before new staff members can reach its full productivity. This means that you need to juggle the costs of hiring new employees, as well as recruitment and training.
Additionally, you may need to apply for medical business loans to train yourself and your current staff if you’ve expanded your services. A successful medical practice strives to keep up with new medical trends and regulatory updates. It’s important to stay updated with specialties, customer care, and more effective and efficient treatment methods. Otherwise, you’ll lose your practice or worse – your license.
4. Fund Business Growth
Growth is beneficial for medical practices, but it can cost much. Moving into a larger office, opening up a new branch in another location, and expanding your product lines all cost a lot of money. You’ll need medical practice financing to make your dreams happen.
If your current space cannot accommodate daily staff, patients, and equipment, then it’s time to expand. However, spending all your working capital renovating or expanding won’t be beneficial for your business. If you don’t want to tie up your working capital on expenses for growth, a small business loan can help. With the funds from the loan, you can expand your business and see a return of investment.
5. Invest in High-Quality Medical Equipment
New and updated medical equipment make your job easier and more efficient. As mentioned, your patient’s welfare is the first priority, and outdated and old equipment could put them at risk without you knowing. The funds from medical equipment financing can help your purchase or lease the necessary equipment for your practice.
Other than that, you can use the funds to bulk-buy medical supplies. Buying in bulk can help you save a significant amount of money. Plus, you’ll rest easy knowing that your practice is well stocked with the needed tools and equipment to treat patients on the daily.
Medical Practice Financing for Your Private Practice
Medical practice financing can help you pay for marketing, equipment, expansion, as well as daily business expenses. SMB Compass offers medical business loans for private practices in the United States, including yours. Speak with one of our financial advisors to know more about the best type of loan for you. Call us today at (888) 853-8922 or email us at email@example.com for a free consultation.