When Is The Right Time For Doctors To Pursue A Business Loan?
There are various scenarios wherein medical professionals can benefit from a business loan. You can use it to raise finance to buy new equipment, to add a division to your clinic or nursing home, and to hire and train staff. Borrowing a loan at the right time can help your practice grow or sustain itself without negatively affecting you cash flow.
Here’s a list of occasions when it makes sense for doctors to pursue a business loan:
1. When The Equipment In Your Practice Has Worn Down And Needs Replacement:
Equipment depreciates with time and will need repairs as time goes by. With newer technology, your existing machinery may also become obsolete. This requires you to make upgrades that can be expensive. So, use a business loan for doctors to finance it. After all, whether you are a paediatrician or a trichologist, you want to ensure that your clinic offers top-of-the-line treatment. Replacing your old machinery can also help detect illnesses and problems faster as compared to before. This will boost profits and also ensure repeat visits.
2. When Your Practice Needs Finances To Continue Operations During A Seasonal Slump:
It is natural for any practice to have a seasonal slump. In such phases the income will be low, especially after you pay fixed costs such as rent, salaries and equipment rental. This situation calls for borrowing an external source of finance to ensure a healthy working capital balance. In this scenario, a business loan will help you out until your business picks up again.
3. When You Need To Diversify:
There are various specialisations in medicine and hence it is natural for a hospital, clinic or nursing home to diversify its operations over time. This process may require adding additional rooms, staff and equipment. This, in turn, requires more finance. For example, if a dermatologist were to diversify into administering treatments, he/she would need a separate room to do so, along with support staff and an inventory of medicines. A business loan is the perfect solution for such situations. You can use it to meet the many needs associated with diversification.
4. When You Need To Expand Or Acquire A New Premise:
Expansion is a move that requires finance on a large scale. Funds are required to recruit additional workers, hire a contractor and to buy or lease property. Apart from this, you will need to purchase more equipment, fixtures, lighting and build waiting rooms. Once your clinic or hospital crosses the start-up stage, you will require an HR department to manage employees. You can also hire a consultancy service to do this. Either way, you will have to incur costs such as retainers and salaries. To fund this big move, you can turn to a business loan customised for doctors. Select an appropriate tenor based on your finances to ensure that all your needs are met appropriately.
Once you have identified the right time for you to apply for a loan, don’t forget to take a look at Bajaj Finserv’s Business Loan for Doctors. The customised loan offers quick disbursal of funds up to Rs.30 lakh along with minimal documentation.