We live in a world that’s obsessed with beauty and staying young. Businesses that cater to skincare and dermatology practices have the ultimate opportunity to become very profitable, with the right kinds of small business loans and other financing.
The American Skin Association estimates that some 100 million Americans suffer from skin diseases, cancers, and other disorders. This is around one-third of the US population. In addition, according to 2016 BCC Research, the worldwide market for skin treatments and disease is expected to reach $20.4 billion by the year 2020, with a combined annual growth rate of 3.6 percent. The US market is in the lead, with some $7.5 billion of the total market.
Understanding what goes into building a strong dermatology practice can help doctors to decide what business line of credit will work best – a merchant cash advance or small business loans. Here are some factors to consider.
DERMATOLOGY PRACTICES INVOLVE A MULTI-TREATMENT APPROACH
In most cases, because skin conditions and diseases can be caused by any number of other health problems, treatment plans often include a multi-level approach. This can mean working in tandem with other physicians, the pharmaceutical companies, and other wellness practitioners to ensure that each patient gets the best possible results. All of this can cost a dermatology more to maintain a high-level of care, therefore having a strong financial plan makes sense.
MOST DERMATOLOGY CLINICS HAVE PARTNERS AT OTHER HEALTH RELATED PRACTITIONERS
Dermatologists often partner with other wellness providers, as well as private and medical groups. A large number of referrals can come in, which requires the dermatologist to have a large enough practice and staff on hand to manage all the incoming patients. Small business loans can be used to expand operations, pay for new facilities, and bring new certified staffers on board.
INSURANCE CLAIMS OFTEN CREATE CASH FLOW ISSUES FOR DERMATOLOGY PRACTICES
One of the most frustrating aspects of working in the medical field is having to deal with the hundreds of health insurance claims that are generated weekly. If your practice accepts medical insurance, then you know that it can take months for the money to start rolling in. Cash flow issues can cripple your practice, therefore a good option to improve the financial picture is to get approved for a merchant cash advance program that puts money in your pockets now.
NEW RESEARCH AND TREATMENT METHODS OFTEN CREATE NEED FOR TRAINING AND NEW EQUIPMENT
To rise to the top as a dermatology practitioner, one must always stay up to date with new treatment methods, new medications, and new equipment that can improve the outcome of patient care. Training and new equipment can be very expensive, but a necessary part of staying in business. A small business loan can be used to fund these needs, and then paid off quickly by adding a new service for your group.
MANY CLIENTS PREFER TO PAY USING HEALTH SAVINGS ACCOUNT DEBIT CARDS OR CREDIT CARDS
Today, there are far more people taking advantage of the tax savings of using health savings accounts and low interest credit card programs to pay for health care needs. In this case, merchant cash advances can be a good way to maintain cash flow for your dermatology practice. The money can be in your account in less than 2 business days, and you only start repaying it as you accept credit and debit card payments from your patients.
DERMATOLOGY CLINICS HAVE TO PREPARE FOR MEDICAL LAWSUITS AND PROBLEM PATIENTS
Just as any health care provider must protect his or her practice, your dermatology clinic must have excellent insurance to cover any problems. In dermatology, patients can easily have skin reactions to new treatments and drugs, or they may not be 100% happy with the results of their treatment. This is often out of the control of the dermatologist. Merchant cash advance payments can be used to pay for monthly malpractice and liability insurance to give you peace of mind.
PROFESSIONAL DERMATOLOGISTS HAVE TO COMPETE WITH OTC SKIN PRODUCTS AND SPAS
While skincare is a major concern of many Americans, keep in mind that they may look for cheaper alternatives to regular care with a doctor. Over the counter skin treatments are a multi-billion dollar business and there are companies that claim all kinds of results for every new product that hits the shelves. Then there are the high number of beauty parlors and health spas that tote skin care lines and treatments as being better than medical treatments. Small business loans can help your dermatology practice to stay in the minds of consumers through smart marketing and community awareness.
MERCHANT CASH ADVANCES AND SMALL BUSINESS LOANS – COMPARISON
If you are still on the fence about the value of taking out a small business loan vs. getting approved for a merchant cash advance, consider that each have their merits. Both can be used to bring in extra money for your practice as a dermatologist.
Small business loans offer larger sums of money upfront, don’t require a merchant processing system, and have both short and long term repayment options. They help any small business to build credit and become qualified for other financial programs. If your dermatology practice is women-owned, there are also special small business loan programs just for women.
Merchant cash advances are perfect for the business that has a way to process credit and debit cards, and can provide an ongoing supply of money while you wait for medical claims to be processed. They impact the business a little less because payments are based on a small percentage of each credit card payment, plus the cost of processing credit cards and applicable taxes.
Qualifying for either merchant cash advances or small business loans is a matter of getting in touch with United Capital Source to fill out a quick and easy application for a free quote. You owe it to your patients to find ways to improve your dermatology practice.