Where Do I Find Financing?

One of the biggest challenges for many of our clients is financing for day-to-day operations, growth, and transactions. The regulatory and cultural changes accompanying the Great Recession have led to constricted lending opportunities which have forced healthcare principals to become very creative.

Here are options to consider:

Operations Financing
There are many financing/factoring companies in this area, which have grown significantly as traditional lending has shrunk by comparison. There are also multiple variations on this theme and it is worth shopping for the terms that best match your needs. Traditional lenders will always offer line of credit (LOC) loans, and in these cases it in highly recommended to move forward with your comprehensive financial needs in mind, including personal. You may find better terms within a more complete relationship.

Growth Financing
While factoring and LOCs can be utilized for modest assistance in this area, there are many companies focused on using term financing for equipment and technology purchases. While traditional lenders prefer these types of hard assets, like factoring there is an emerging class of lenders focused solely on equipment and technology financing. Again, being a good consumer is to your advantage.

Transaction Financing
This is the toughest area for most business owners looking to transition or acquire a company. There are an increasing number of private lenders coming into the marketplace as well as owners willing to consider seller financing (aka carrybacks). This market will continue to evolve.

The most important consideration: keep your strategic objectives in mind, including timelines, while you shop thoroughly for financing. It always pays to be a good consumer.