As a healthcare professional, you know how beneficial medical business loans can be. Medical professionals need loans for a variety of reasons, including equipment, startup costs, moving costs, practice buy-in, and more. Having a loan to cover the big expenses within your practice can increase your cash flow, which in turn helps your business grow more quickly and effectively. Medical practice loans are common within the healthcare field, and depending on your specific needs, it could be the right choice for you as well.
While medical practice loans can be a wonderful business strategy for many professionals, getting a bad one can be detrimental to your business. It’s critical to be on the lookout for red flags and good signs when you’re on the lookout for the best medical loan to fit your needs. There are few things worse than getting into a bad loan agreement, which is why we feel the need to educate medical professionals everywhere on what to look out for, how to shop for a great loan, and the best place to get one.
At Hippo Lending, our goal is to make sure you are getting the very best loan for your specific situation. Here are the red flags you should be aware of, signs that you’re getting a good loan, and where to shop for the best loan options.
Red Flags to Watch For
High Interest Rates
Interest rates should be the first thing you look for when deciding on a loan. Better credit scores will ultimately get lower rates, but it’s important to consider how much money you’ll be paying in interest over the lifetime of your loan no matter how great your credit score is. As a rule of thumb, your interest rate really shouldn’t exceed 36%. And if the interest rates are in the triple digits, walk the other way – there are better options out there for you that don’t require you to pay massive amounts of interest.
If you are shopping for a loan and the company is dishonest or encourages you to be dishonest, this is a huge red flag. You never want to see your loan company doing shady things to other people, because they will most likely do shady things behind your back as well. Make sure you go with a lender that is honest, trustworthy, and has integrity.
When you are borrowing a large amount of money, you want to make sure the details and agreements are in your best interest. If the lender is rushing you to sign the documents, discourages you from reading the details, or glosses over important information in your agreement, this is a bad sign and you should be wary. If your lender is trying to hide things, issues are bound to happen later on and it will be too late to back out.
Signs You’re Getting a Good Loan
You want to go with a lender who will be fully transparent with you throughout every step of the process. If you have questions, you should be completely comfortable asking them. If you have concerns, your lender should listen and offer solutions rather than giving you unclear answers. A great lender will go over the details of your agreement with you and encourage you to read the fine print – if they don’t have anything to hide, you won’t have a problem with transparency.
Fair Interest Rates
As mentioned above, your interest rate typically shouldn’t exceed 36%. When you go with a reputable lending company, you can have peace of mind knowing that you are getting fair, honest interest rates. Your lender should have your best interest in mind, so when you are gathering different information from different lenders, be sure to keep this in mind.
Where to Get Your Medical Practice Loans
Now that you know more about how to spot a great lender, you can start shopping. There are plenty of medical practice lenders out there who want your business. The best thing you can do is shop around, compare the offerings, and go with the one that makes the most sense for you and your business. Some lenders won’t be the right fit, and that is perfectly normal. Don’t settle on a loan until you feel totally comfortable with the terms and conditions.
At Hippo Lending, we offer customized loans to meet your very specific needs. Whether you need a loan for equipment, practice startup, or practice buy-in, our lending experts work with you every step of the way to make sure you fully understand the process and get full transparency. If you are interested in getting a medical equipment loan, contact us today and we can answer any questions you have. If you’re ready to get started, fill out an application here.
Hippo Lending represents the convergence of medicine and finance. While we may not be saving lives, the underlying principles of the Hippocratic Oath closely align with our values: a commitment to service and treating our customers as people, not just a loan. We ensure privacy and always act from a position of unity and humility.