Obtaining Credit From Private Lenders: 7 Positives and Negatives for Orthopedic Surgeons

Lawrence Hoffman -   Print  |
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This article is written by Lawrence Hoffman, owner of www.larrythelawyer.net and www.lhfundingcorp.com, has been a personal injury attorney for 15 years.

Orthopedic surgeons or practices can obtain a business line of credit from a private lender to manage workers compensation cases. The term is generally a seven year straight principle and interest repayment. This is the place to go when a bank will not give you the money you need but you do not want to go to a MAR. Positives:

1.    Generally, business lines of credit from a private lender are easier to obtain than a bank line of credit  
2.    The credit requirements on a business line of credit from a private lender are lower.  
a.    The general required minimum credit score is 600 (which is not a good credit score).
3.    You are usually required to produce less documents than for a bank loan — it may be only an application, personal financial statement and two years tax returns for your business and personal
4.    They generally provide lines from $20k-$300k, but sometimes go higher
5.    They will lend to any type of medical care including orthopedic and chiropractic offices  

Negatives:

1.    These loans are more costly than a traditional bank loans  (rates can be in the 18 percent range)  
2.    This is a straight loan — they are not financing the receivables, so unlike a MAR Funding, this is a debt


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