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People are becoming increasingly conscious of staying healthy. Americans of all ages are embracing allied health services, including physical therapy, raising the demand for services. If you’re a physical therapist looking to open your own practice or purchase an existing one, we can help you learn about the loan process.
Start with a having detailed documentation. Your business documents should outline every part of your business. This includes the software you use, how many patients you see monthly and any specialties you have. Comparing the expenses and revenue of other, similar physical therapy practices could help you determine your success in finding the right financing for your business.
With demand for physical therapists likely to increase, starting or buying a practice may be a good career move. Before you apply for a loan, you’ll need to have good to excellent credit and experience as a business manager. This shows potential lenders that you’re serious about your practice and have the skills to run it.
The key to financing a physical therapy practice is to look for lenders actively pursuing health professionals. This means you may want to consider a bank business loan. Shopping for a loan with affordable rates and repayment terms that fit your budget will help you find the right fit for you.
To get the right financing for your physical therapy practice, you’ll need to determine what type of loan you’ll need. Here are a few of the most common that can help you expand your business.
The startup costs for each business model varies, and there’s no set rule about which costs more to open. Although starting your own practice involves buying equipment, renting out an office and hiring employees, it may not be more than the purchase price of an existing practice.
Consider the space you’ll need to buy or rent, the employees you’ll need to hire and the equipment you want to use. Having a budget with estimated costs will help you when you present your business plan to a lender. A budget can help guide you to a loan that can finance everything you need — including a cushion while you work on marketing your services to grow your client base.
If you choose to purchase an established physical therapy practice, consider the following before making an offer:
When you’re considering going into business on your own as a physical therapist, the first decision you should make is whether you want to start your own practice or purchase an existing one.
Starting your own physical therapy practice appeals to many therapists who find the idea of building a client base and creating a legacy in their own name enticing. It comes with plenty of risk, but at the end of the day, it could be worth it to manage your own practice.
Purchasing an existing physical therapy practice can be a better financial and professional choice, but it may be more expensive than starting your own business. An established practice comes with an existing client base, has a place within the community and may have existing ties and referral agreements with the local medical community.
Qualifying for a business loan can be complex, and the criteria you’re required to meet may change based on whether you’re financing your current business or buying another practice. Generally lenders look for:
For buying a practice, you’ll need an additional documentation that includes between 12 months and 2 years of complete, audited financial records for the practice, including profit and loss statements.
Starting a physical therapy practice or buying one already in business can be a great next step for your career. While there is a lot to consider and research, funding is within your reach to grow a practice you’re proud of. Learn more about business loan options in our comprehensive guide.
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