Taking It To The Bank Part 4: Taking a Hike

It was impossible to get a part-time job. I kept on searching, but I needed to start  thinking about plan B.

First, I contacted Matsco to see how stringent their associating income requirement was. Apparently, it’s absolutely necessary no matter the circumstance. They needed me to make at least $600 a week associating, which equates to  working 1 to 1.5 days a week as an ophthalmologist. They were a bit more flexible with how long I needed to associate though. I just needed to work long enough until my practice began to generate a steady revenue stream. There was no magic number. Nonetheless, I needed to show Matsco my employment contract before they disbursed any funds.

Matsco does not require a down payment or a minimum amount of assets. So, you could have very little in your checking account, and still qualify for the full loan. My situation was a little different. I had a respectable amount of savings, but no job. One alternative I suggested was to pay myself $600 a week from my personal savings for the first year in place of the associating requirement. By doing so, I would also be able to free up the 1-1.5 days a week to devote to my practice, which would probably be healthier for growing the practice. However, Matsco did not allow that alternative. They would rather have me invest 20-30% of my work week to someone else’s practice, while being away from my practice.

I also tried asking them if I could forego the associating requirement for just the equipment loan only. Since this type of loan is secured by the equipment itself, it’s less riskier. Unfortunately, they told me that I still needed to have enough personal capital to cover for 50% of the equipment loan, and that they would take a blanket lien on the practice. Even though I had already invested a nonrefundable $1,000 into Matsco, I had ended up passing on them because that’s not quite what others were asking. I was officially done with Matsco.

Oh well. That was that. Fortunately, my parents were kind enough to offer me a personal loan to cover my working capital and soft startup costs. I really didn’t want to go this route, but I was out of options. I still needed to find an equipment loan though.


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