10/17/2019
Financing a Medical Practice Acquisition
Medical Practice Financing vs SBA Backed 7a / 504 Loans
Are you a DO, MD, DDS, DMD, DVM, OD, or have another type of Medical License that allows you to operate a Clinic, with out being under the supervision of a Doctor? Do you have the desire to own and operate your own Business? Congratulations! You have the ability to earn a really good living and your skills will always be in great demand. Due to this, Banks want to lend you money, especially to Purchase a Business. Over the years, I have seen too many Doctors buy Medical Practices with SBA Backed Loans thru inexperienced Business Brokers that were not even aware that many Banks offer “Practice Financing” to licensed Doctors.
What’s the Difference?
On an SBA Backed $500,000 Business Purchase, you can have up to $12,000 is SBA Guarantee Fees and another $10,000 in Closing Cost. The SBA SOP also requires the buyer to put 10% to 15% into the deal of their own funds.
With a “Practice Financing” $500,000 Business Purchase, there are no SBA Guarantee Fees (savings of $12,000) and Closing Cost will be a Fraction of SBA closing cost. You can buy an established Money-Making Business with no money down!
I am not knocking SBA Loans; I am just saying that you need to weigh all your options and do what is best for you in your situation. I have personally sold many Medical Practices where the Seller was cashed out at closing and the Doctor / Buyer not only put ZREO Dollars Down, but they left the closing with a Check for Working Capital!
Many of these Doctors have Doubled and Tripled the Size of these Businesses I assisted them in Acquiring. If you are thinking about buying or selling a Medical Practice, contact an experienced expert, call Vince LoCricchio CBI / BCI at 813 690-0109 for a free confidential consultation about buying or selling a Medical Practice or email [email protected] Member International Business Brokers Association, M&A Source and Business Brokers of Florida. You can View http://100PlusForSale.healthcareenterprisebrokers.com