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Doctors and other healthcare professionals are feeling the pain from all sides Florida-based Doctor, Dr. B. Gordon, MD, needed quick cash - and lots of it. Maxed-out credit, rising overhead and expenses threatened to shut down his practice for good… One month and four bank rejections later, Dr. B. Gordon (name changed for privacy,) was still stuck…and frustrated. Until he stumbled upon a private equity lender who specialized in medical funding. Five days later, his bank account was $100,000 richer. And he’s breathing far easier. Pick up any newspaper, from USA Today and The Wall Street Journal to your local edition: article after article reports tighter standards, tighter loans; and fading hopes of recovery as even big players like Bear Stearns crash and burn. Doctors and other healthcare professionals are feeling the pain from all sides: the brutal credit environment, soaring expenses, taxes, credit card debt, malpractice insurance, payroll - plus rising billing defaults from their patients, as many struggle to keep their homes and heads above water. But one bright spot is emerging: as doctors look to consolidate their debt or get a quick cash infusion, they’re finding a warmer welcome from a growing funding resource: private equity firms. Best-Kept Secret? Before wasting time chasing skittish banks or maxing out credit cards (which lowers your credit rating,) a private equity firm may be something for you to consider. Doctors are often surprised to find the funds more plentiful, the process faster, and the approval rate far higher. Turning On the Cash Spigot? Bankers Healthcare Group (BHG) is a prime example: this 16-year firm leads the market in unsecured funding to doctors, and unlike traditional lenders, shows no signs of turning off the cash spigot anytime soon. According to CFO Edmund Durant, not only do most of applying doctors get approved – but they are funded $50,000 to $100,000 on average. (That’s without any collateral - 100% unsecured.) Compare that to the far stingier amounts tight-fisted banks are doling out, on top of their strict security/collateral requirements, and the first question one has to ask is how? Higher Approvals How can private firms like BHG do what other lenders can’t – or won’t? “Right now, the financials simply don’t make sense for banks and traditional firms to lend,” explained Durant. “But private equity firms are not as exposed to the same variables. They don’t face the same pressures.” Private equity firms that cater to specialized clientele also tend to use different approval criteria than typical lenders. BHG, for example, serves only licensed doctors and actually caters to smaller groups (less than 5 practitioners,) the ones who struggle the most for funding. “Traditional lending formulas are not the right fit for most short-term cash flow issues doctors face,” observed Durant. “With 16 years experience in healthcare, we tend to look at factors beyond just numbers. We’ve funded thousands of doctors in both good economies and bad. We know what’s realistic for them, what questions to ask, and how to spot their potential; all details many lenders often miss. We really understand the day to day challenges they face.” The loan no one sees Since these loans are considered commercial loans, there’s another big advantage: they do not appear on your personal credit report. So you can clear debt and strengthen your profile without jeopardizing your personal rating. But do your homework Experts advise doctors to use a reputable, trusted lender and shop for a competitive package. A few things to check: - Ask about flexibility in terms and make sure monthly payments will be comfortable. - Make sure the loan is based on simple interest terms. - Avoid upfront fees and application fees if possible. It’s also better to go with a direct lender that can service your loan directly, rather than dealing with a broker that will shop it to a 3rd party. This way, you deal with the same company from start to finish. You’re less likely to be shuffled around from one firm’s service department to another when you have questions or need help. Back for more? Apparently, once doctors get a taste of the speedier approvals and abundant cash specialized healthcare lenders like these offer, many return for more. “Quite a few of our doctors do partner with us multiple times, maintaining an ongoing relationship,” commented Durant. “They pay down debt, shore up their cash flow, invest in new equipment, upgrade their offices - whatever they feel they need to do at that moment to breathe a bit easier or reach the next level of success.”

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