It's great when you find the perfect space, piece of land, grey shell, vanilla shell, or whatever. It checks all the boxes for visibility, demographics, accessibility, and aesthetics.
But here’s the hard truth: if you can’t finance it, the perfect space doesn’t matter. This is where banking and financing come into play. When you are doing a start-up, the banking and financing for your practice is one of the most important items to consider. Let's explore.
Not All Banks Are Created Equal
Some banks say they “do healthcare” lending. Others are
dedicated healthcare lenders. There’s a big difference.
- Some institutions have a niche group of healthcare-focused bankers who understand the complexities of starting a medical, dental, or veterinary practice.
- Others simply assign your file to a general banker who “also handles” healthcare on the side.
This distinction matters. You wouldn’t see a general practitioner for a highly specialized medical condition like epilepsy - you’d seek out a neurologist. Your banking team should be no different.
Specialized industries require specialized support.
Let’s Break Down Your Options
When working with a healthcare-focused lender, it's common to see term loans structured with fixed interest rates over 5, 7, or 10 years. Choosing the right term is critical:
- 5-Year Term: Higher monthly payments, but less total interest.
- 10-Year Term: Lower monthly payments, allowing for more flexibility during your ramp-up period.
Each structure impacts your cash flow, repayment strategy, and long-term business goals.
Another route is an SBA loan - partially backed by the U.S. Small Business Administration. SBA loans often offer more flexible terms and may be accessible for startups that can’t meet traditional commercial lending standards. However:
- Some SBA loans are fixed-rate.
- Others are variable and tied to fluctuating indexes.
The right loan product depends on your cash reserves, credit score, debt profile, and overall financial health.
Each lender has their own appetite for risk, and it’s vital to find one who aligns with your practice vision and growth strategy.
Expert Guidance Makes a Difference
Feeling overwhelmed? Healthcare real estate and financing are complex. Navigating it alone can be overwhelming.
That’s where we come in.
At GILE Commercial Real Estate, we do more than find you a space - we bring decades of healthcare banking experience to the table. That means we don’t just help you find the right space, we also help you find the best source to fund it. We understand how to pair your unique goals with lenders who specialize in supporting medical, dental, and veterinary practices.
You won’t find many (if any) commercial brokers with this kind of combined experience in healthcare real estate and finance.
Let's talk. Whether you're still exploring options or ready to break ground, we can help you align your real estate and financing strategies to launch your practice with confidence.
