Feet support our entire body, from our legs to our head, our feet carry us around each day. Given the importance of our feet and the fact that approximately 75% of Canadians will experience health problems related to their feet, you can imagine why being a podiatrist is a lucrative career.
If you plan on starting a podiatry business in Canada, you will require capital. That’s where a business loan comes in. A business loan can not only help kick start your business but can also help established podiatry businesses with both operating and expansion costs. With the right financing, you’ll be able to create a business that you not only feel proud to own but that will better serve your community and clients.
What a Good Business Loan Can Do For Your Podiatry Clinic
If you’re a professional podiatrist or the manager of the clinic itself, you’ll want to have the best instruments and latest equipment to keep your patients feeling comfortable and give them the best care possible. A business loan can also help you take on more patients, advertise to a wider audience, rent a larger location, and finance expensive medical tools, equipment or supplies. Here are some of the things a good business loan can do for your podiatry clinic.
As a podiatrist, you’ll need access to the latest podiatry equipment such as nail drills, ultrasound machines, surgical tables, lighting, treadmills, video cameras, analysis software, patient chairs, and more.
Podiatry Tools and Supplies
You’ll also need access to lab garments, surgical attire, disposable gloves/masks, safety glasses, stethoscopes and other podiatric surgical tools.
Similar to a dental clinic, you’ll need to construct a waiting room for your patients and an office for yourself or the manager. The waiting room will require new, comfortable furniture like chairs, desks, tables, or sofas. On the other hand, your office may require supplies and equipment such as pens, paper, telephone systems, computers, fax machines, paper, and printers.
What to Look for When Applying for a Business Loan For Your Podiatric Business
Lender – You should look for a lender who is reputable and has experience in the podiatry industry. They usually understand the business better than any newcomer and often give good advice to help your business. Moreover, a reputable lender means you’ll have fewer problems with customer services and hidden fees.
Fees – Speaking of hidden fees, you should always ask your lender about any fee including administrative or origination fees. For example, a loan origination fee can cost between 0.5 – 8% of your total loan cost. On a $35,000 loan, that could range from $175 to $2,800 in fees. In addition, you should also ask about potential fees like NSF fees, prepayment fees, and late fees.
Interest – The interest you’re charged has the biggest impact on the cost of your loan. It’s important to research and compare rates and terms to find one that best meets your needs. A loan comparison site like Loans Canada can help by providing you quotes from multiple lenders so you can secure the best rate for you.
Loan Amount – It’s important to consider how much funding you actually need. Overborrowing can lead to high debt levels and a poor credit score.
Term – The term length you choose will also impact the amount of interest you pay on the loan. While long terms offer affordable payments, you end up paying more in interest over the term. As seen in the example below, a long term loan can provide monthly loan payments of $603.70, which is $631.38 lower than a short term loan. However, as a result, you end up paying approximately $6,248 dollars more in interest.
Total Interest Paid
More Ways to Finance Your Podiatry Business
There are many options available for businesses to finance whatever expenses they may have. Here are some popular options available for your podiatry businesses:
Merchant Cash Advance
If card sales are one of the main ways you accept payment for your podiatry services, then you could use a merchant cash advance to fund your business expenses. A merchant cash advance is an expensive but fast and easy loan to qualify for. Businesses that have fairly consistent revenue through card sales can easily qualify for a merchant cash advance. Lenders will provide a lump sum of money in exchange for a percentage of your future card sales.
Obtaining a large business loan can be difficult without providing some asset as collateral. That’s why equipment loans are great. An equipment loan works like a standard business loan, but the equipment you purchase acts as collateral for the loan. That way, you can finance expensive pieces of podiatry equipment without the need for additional collateral.
When it comes to small or emergency expenses, a business line of credit can be a lifesaver. You’re able to withdraw money up to a certain credit limit, which you can then reuse as you pay it back. Moreover, interest is only charged on the amount you use and you can choose to repay when you want. However, you will have to pay the interest. The accessibility and versatility of a business line of credit make it a product that every podiatry business owner should have in their arsenal.
How do I qualify for a business loan for my Podiatry business?
Depending on the lender you choose, the requirements to qualify for a business loan will vary. However, there are a few common factors most lenders evaluate to determine your ability to repay debt. This includes your personal and business credit score, your time in business, your business monthly sales, revenue and cash flow. Some lenders may even ask for a business plan if you’re a young or small business.
What documents do I need to apply for a business loan?
When applying for a business loan, you’ll need to provide documents for identification and income verification. This includes a government-issued photo ID, business license number, tax returns, bank statements, revenue statements, and proof of asset if you’re providing collateral.
Can I get a business loan for my Podiatry business with bad credit?
Yes, you can get a business loan with bad credit if you apply with an alternative lender. Unlike banks, alternative lenders accept applicants with bad credit, as they base their approval on other financial factors such as your business revenue, monthly sales, debt, time in business and more.
How fast will I get my funds to start my Podiatry business?
Depending on the lender you apply with, it can take a few days to a few weeks or months to get funded. In general, banks require more time due to their stringent lending standards. They usually are able to fund a business as early as 3 weeks. On the other hand, alternative lenders often have partially automated underwriting processes and thus are able to fund a business in as little as a few days to a week.
The Business Loan You Need to Succeed
The benefits that come with a good business loan are almost endless. More patients, more success, and more profits. Acquiring your business loan through Loans Canada to access:
Competitive rates that will adhere to your financial needs
Flexible payment schedules
Fast funding (received in as little as 2 days after approval)
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