Most physicians that start an independent OBL require some form of financing in addition to their personal savings. Traditional banks, SBA lenders and equipment leasing companies will all require a detailed business plan and proforma for approval. Most lenders will also require a personal guarantee from the physician.
Small Business Administration Loan
May be used to pay for construction, equipment, furnishings, inventory and consulting costs.
May also be used to provide working capital for operations.
Requires that physician also invest personal money in the project.
Amortization of Construction Expense into Office Lease
Landlord agrees to finance the portion of tenant improvement that must be paid by tenant.
Landlord adds monthly payment for the construction cost to the base rent in the lease.
Typically requires lease term of 5-10 years depending on amount financed.
Equipment Leases
Original medical equipment manufacturers will finance their own equipment and some other fixed assets with an initial period of very low payments.
Third party equipment leasing companies will finance medical equipment, other fixed assets, and consulting costs. Some offer an introductory “interest-only” payment period.