The owner and head doctor of a large medical practice found himself at a crossroads with two choices. He could accept that traditional funding wasn’t an option for him and that he may never grow his practice. Or he could choose alternative business funding and triple the number of offices he operated in mostly low-income urban neighborhoods.
“If you really believe in your business and concept, no bank can take that from you,” the doctor said. “I’ve been able to grow this business when a bank wouldn’t give me enough money to buy a copier.”
A profitable medical practice can still be declined
Traditional banks denied his call for funding as he personally, not his business, was in the midst of negotiating an IRS tax lien of $1.2M. Traditional lenders turned away this thriving business with positive cash flow due to the situation with the IRS. The team at United Capital Source is proud of providing this New Jersey based physician with a business funding program that cost 14 cents on the dollar. This businessman was faced with our competitors offering 35% interest rate loans.
In three years, through an on-going partnership with United Capital Source, this doctor has been able to grow his medical practice from just 10 offices in New Jersey to nearly 40. He now employs 50 healthcare providers and another 250 staff members.
“A lot of my employees are single moms in urban areas. They probably wouldn’t have many other employment options,” he said.
In this case, tax liens were preventing him from qualifying for traditional loans.
“Tax issues are not uncommon in small businesses that are growing,” he said. “But when you have tax issues, it’s like you have kryptonite.”
We factor the things that matter, more
Those liens are now in the final phases of being cleared up. In the meantime, he is getting ready to start a third round of funding with United Capital Source.
“United Capital Source is willing to work with companies that show they can support the funding levels they request,” he said. “The United team did their review of our finances; they reviewed us very well and very completely. It’s been a relationship that can best be described as ‘win-win.’”
That relationship is one of the reasons this doctor raves about United Capital Source.
“When I find a company or a person who works well with me, I tend to want to stick with them,” he said. “I like relationship-based businesses and funding.”
The doctor offers simple advice for other business owners who don’t qualify for traditional funding but are wary of non-traditional options: Don’t fool yourself.
“There’s a reason why traditional banks won’t give you money,” he said. “You need to look at your financing, see what the issues are, see what your bottom line looks like, and be very realistic and specific as to why you want the funds. If you’re making money, you can find a funding source.”
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