Types of Business Loans for Medical/Dental Practices & Doctors
Canada Small Business Financing Program (CSBFP) Loans
Medical and dental practices can benefit immensely from favorable rates of CSBFP loans. The favorable rates are due to the risk shared by the CSBFP by working with specific lenders.
These are the basic and most common loans for medical and dental practices. It is essentially a normal business loan that can finance any expenses that come up in medical and dental practices.
Business Line of Credit
The business line of credit can help medical and dental practices meet their business expenses over a long period. The line of credit offers the business the freedom to access and spend funds as per their financial needs. The average APR on a line of credit is typically higher compared to the rates of term loans. With proper use of a line of credit, a business can cover large expenses as well as smaller expenses over a long period.
Merchant Cash Advance (MCA)
Merchant cash advances are yet another business financing option that affords quick approvals for businesses even though they come at higher rates. The MCA is paid back at a factored rate through a portion of future credit card sales.
Medical and dental equipment are very expensive and require financing for their acquisition. Equipment loans are specifically aimed at purchasing equipment. The equipment purchased is then used as collateral for the loan.