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Thursday, July 29, 2010

Q & A: 100% Financing for Medical Professionals

Q: 100% Doctor Financing, how does it work? Do you have an intake form or prequel form you would like to see?

CommercialLendingPros.com: This is a special SBA loan program. Here's a flyer and our standard SBA loan application form with the checklist of documents needed to pre-qualify a loan request.

Please note that this program usually requires a doctor to come to closing with up to 10% of the total project cost (unless he/she can document they've already invested that much or have that much equity in the land) and then he/she is reimbursed after closing for most of that amount with "working capital".  So it ends up being at or about 100% financing but they may need at least 10% IN LIQUID ASSETS TO COME TO CLOSING WITH - DEPENDING ON THE SPECIFICS OF THEIR SITUATION.

Q: What do you mean reimbursed with working capital?  Is the 10% available as a line?  I can see some doctors using personal funds to qualify but interested in returning the funds to where it was taken from after closing.

CommercialLendingPros.com: With this SBA loan program we can finance real estate acquisition, build-out, inventory, equipment and working capital. So, for example, if a doctor was opening up a new office and the TOTAL COST for all of the above mentioned items was $700,000, with a breakdown of :

$550,000 for real estate purchase

$40,000 for build-out

$15,000 for furniture and fixtures

$40,000 for equipment

$30,000 in inventory

$25,000 in working capital for 1st year salary for a receptionist / office assistant

The doctor would come to closing with $70,000 (10% of total cost of project) but get back $55,000 after closing to cover the cost of inventory and "working capital" to pay for the office assistant. The doctor ends up getting more than 100% of the real estate purchase financed and somewhere between 90% and 100% of TOTAL COSTS financed.

I hope that helps you better understand how the program works. Don't hesitate to call or email if you have any additional questions.

Tony DeCresie

Commercial Capital, Ltd.

Your #1 Source for Business & Commercial Loans

Office: 863-298-8900 Fax: 863-877-4456 Cell: 813-833-3132

Your #1 Source For Commercial & Business Financing

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