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Practice line of credit

Practice line of credit

Money up your sleeve
Owners of healthcare practices, need to borrow funds for a variety of specific reasons – to upgrade equipment, improve the waiting room, or to finance the purchase of practice premises etc.

Sometimes you need to borrow funds to cover day to day business expenses such as insurance, consumables, software, stationery, association and professional development fees. Often the costs involved in these smaller purchases are not planned for.
Line of credit

Borrowing money for business expenses is a common way for practice owners to protect their cashflow of personal reserves.

If you are experiencing the pressure of a tight cashflow or want funds ready for future cashflow needs, a line of credit may be the solution.

The benefit of a line of credit is that it gives you an opportunity to plan ahead for unforeseen expenses by arranging easy access to money that you may need in the future.

Medfin’s NSW State Manager – Gary Lucie Smith offers the following advice on selecting a line of credit.

A line of credit should be simple to set up, and easy to use. Discuss with your financier the funds you wish to place at call and after the limit is approved, your account will be ready for use.
Access you funds as needed

Once your account is active you can dip into the funds as needed, up to the amount of your agreed limit. Funds do not need to be used all at once – they can be tapped into as required.

Make sure your account boasts a competitive interest rate. The major benefit of a line of credit is that you only pay interest on the amount of money you have drawn, not on the total limit that is at your future disposal. If you set up your account for business purposes, your interest payments may be tax deductible.

With Medfin’s line of credit – Med-e-credit – you can save money with no annual fees. You do not need to offer security for the facility.

If you need money for future business expenses take a look at the product benefits a line of credit facility offers.

If you’d like further information on Medfin’s Med-e-credit call 1300 361 122 or visit Medfin.com.au to request an online quote.