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.


2 thoughts on “Taking It To The Bank Part 4: Taking a Hike

    • Depends on the cost of the equipment you need. As an ophthalmologist I am not sure at all. Try speaking with colleagues. Your office space will probably be more flexible than ours which has to be the right size for slit lamp, chair and other equipment, so your tenant improvements will cost less unless you’re building out a shell.

      I imagine it would be under $75,000 unless you paid a lot for TIs.

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