Howie’s thoughts: most practices get enough revenue to cover expenses by month four or five; I had positive cash flow month two because my lease was structured to be rent feee for the first six months, the rent was amortized into the remainder of the five year term. The experts recommend you have access to a credit line of $100,000 in addition to your practice opening expenses.
Ways of screwing up to not cover expenses include but are not limited to delay credentialing by hiring a service that doesn’t do its job, or making the mistake of outsourcing your billing as well as not collecting patient responsibilities at the time of service.
Most folks who have worked as an associate will have a easier time obtaining funding as they are reporting existing income, or perhaps have savings or home equity to tap into. Here is my first post and second post about practice financing. Also, the economy is doing better in 2018, underwriting is less strict. The WSJ just had an article about the increasing popularity among banks for unsecured loans. Ho Sun has a series of excellent posts about equipment financing.
