Case Study: working capital loans for medical practices
Young Doctor gets his practice in order with working capital loans for medical practices.
A medical practice meets their financial needs with a working capital loan
Dr. Tom Richards dedicated his twenties and early thirties to becoming a pediatrician. It has been his calling to improve the lives and health of our most precious of resources, children.
Upon completing his residency in pediatrics three years ago, Dr. Richards made the decision to stay in the city in which he completed his training. Located in the Southwestern part of the United States, the community in which he chose to work in desperately needed qualified doctors.
Many of the physicians with whom Dr. Richards trained with, opted to go to larger cities where they could make considerably more money than they could remaining where they had trained. This makes sense considering most doctors complete their education with hundreds of thousands of dollars in debt.
Setting up a new medical practice
Dr. Richards ventured out on his own a little over two years ago. As expected, business grew rapidly. However, the speed of reimbursements from the Government and insurance companies were not as quick as when the bills came due.
Tom had learned from talking to his peers that healthy cash flow, in addition to excellent patient care is the key to a successful practice. After almost fifteen months of worrying about cash flow, Tom felt as though he needed outside help in the form of extra funds to cover those days when expenses exceeded income.
Looking for financial help
Even though Tom made a respectable income, he was still a new business with little track record. Additionally, he had several tens of thousands of dollars in student loans that took a sizeable chunk of his salary every month. He knew that he was not going to be an attractive risk for a traditional bank. If Tom was going to get help with his situation, it was going to come from another type of financial institution other than a bank.
Tom came across working capital loans as a solution to his predicament doing some research online. He learned that the entire application process can take a matter of hours and funding can happen very quickly. The best part is that his credit score would not hurt his chances of getting a loan.
Enter Zip Capital Group
Our paths with Tom crossed on Thanksgiving 2016. Tom was talking to Brady, his brother-in-law and a small business owner who had long known about working capital loans. Brady gave Tom the contact information for Chris, his Zip Capital Group account executive. The following Monday Tom called Chris and by Thursday of that same week, Zip Capital Group wired the funds to his account.
Cash flow is key to a successful medical practice. A working capital loan is an effective way to tie things over when expenses exceed cash inflows. Zip Capital Group has worked with several medical practices to help them address their cash flow needs with working capital loans for medical practices.
If you are a practice in need of improving your cash flow, give us a call today at (800) 795-3919.