Medical Business Loans

There are many different types of loans for a business to choose from, which can make the decision to get one a lot more difficult for those who don't know anything about them.

Some are better for certain kinds of business - and taking a loan out that suits your exact needs (rather than those of a more random nature) can be much more beneficial. Below, you will find the types of business loans and what they can be used for.

Short term loans

Short term business loans often last for a small amount of time (which could be a few months). You could even have the loan for a couple of days!

These kinds of loans usually charge a higher interest rate than many other types of loans, due to their lower repayment times. Some lenders may make the decision to charge interest monthly, so make sure to check all terms and conditions over a few times, to give yourself a better idea of what you'll be paying back.

Bank loans

Bank loans are offered by banks - and with a bank loan, your business will be allowed to borrow a high amount of cash and then pay it off over a set period of time.

Many of these types of loans will also need a directors' guarantee, which means that if your business is unable to pay back what is owed, then the director(s) will then be responsible for the debt instead.

Peer to peer loans

Peer to peer loans are a type of social lending, which is typically offered by an online lending service. With a peer to peer loan, you'll be able to borrow money from investors who want a return on their money. Some peer to peer lenders may require a directors' guarantee when you apply for a loan with them, in much the same way as a bank loan.

Invoice finance loans

Invoice finance loans operate a little bit differently to most normal kinds of business loans. Instead of lending a big amount of money to the business, the lender buys some outstanding invoices from your business, which then releases the money that you're owed by your customers.

There are factoring invoice loans, where the lender will manage your sales - and they will also take the money straight from your customers. There are also invoice discounting finance loans, where the lender instead releases funds before your invoices are paid and then you owe the lender the outstanding amount of cash.

Asset backed loans

Asset backed loans are a type of secured loan that is backed by a business asset. With these kinds of loans, you might be able to borrow more money than you would with some of the other ones.

Assets that can be used for these types of loans tend to be things like property, company vehicles and even stock. Speak to us regarding all your loans for doctors.