The MedTrust Capital Blog

The Latest Information on Medical Practice Financing

Stock Sale vs. Asset Sale When Buying a Healthcare Practice

Healthcare professionals, practice owners, and managers interested in buying and selling practices must learn the difference between stock sales and asset sales when buying a healthcare practice.

For some background, a stock sale is where the practice entity stays the same and the ownership (“stock”) of that entity changes hands.  All the assets and liabilities inside that practice are transferred to the new owner.  The pros of this are that the practice entity remains in existence.  Patients aren’t surprised by a name change.  Payroll and benefits continue on as they had before under the practice name/tax ID.  The con is that since the entity is still in existence and the buyer is buying all the assets and liabilities, you could potentially be buying unknown liabilities (pending law suits, unhappy patients from previous bad care, unpaid taxes, etc).  This requires a lot of extra due diligence to make sure that there are no surprises after the sale is finalized and it can be very expensive.  The other downside to a stock sale is that the tax write offs to the buyer are not as beneficial as an asset sale (although you can elect to treat a stock sale as an asset sale FOR TAX PURPOSES ONLY in order to take advantage of some of those better tax write offs).

An asset sale is where the buyer creates a new entity and then buys specific assets/liabilities of the selling practice and puts those assets/liabilities inside of his new entity.  The pro of this is that you choose the specific assets you want to purchase.  The purchase contract will actually have lists of all the assets included and all the assets excluded from the purchase agreement.  This limits liability because unknown debt arising in the selling practice’s name is still attributable to the selling practice, even after the sale.  The con of this is that administratively it requires some additional legal and accounting work to create a new entity and setup a tax ID, bank account, payroll, etc.

If you opt to keep it a stock sale (which I would not recommend most of the time), then we would suggest that you definitely check with your attorney and hire a professional to do due diligence for you before you close on the sale.

If you have questions about your healthcare practice sale, taxation, or financial issues around your practice purchase or sale, contact Carly Carlson at Aldrich Advisors.

carly j carlsonCarly Carlson, CPA, our guest blogger, has over eight years of experience advising businesses and individuals on taxation, accounting, and management matters. In addition to tax and managerial consulting, Carly provides detailed financial and forensic analysis for attorneys throughout the Pacific Northwest. She has assisted in numerous high-profile litigation matters. She is also involved in the valuation of closely-held businesses in Oregon and Washington. Further, as a Certified QuickBooks ProAdvisor, Carly has assisted clients with multiple accounting software conversions both to and from QuickBooks and consults on various bookkeeping and reporting requirements.

  • American Institute of Certified Public Accountants (AICPA), Member
  • Oregon Society of Certified Public Accountants (OSCPA), Member

Carly graduated with her degree in Accounting from Portland State University.

Online Marketing Tactics From Big Buzz Dental Marketing

Online Marketing Tactics From Big Buzz Dental

dentist working on patientOver the past 10 years serving the dental industry, online marketing has been a top lead generating tool for countless Big Buzz dental clients. Over the years, the types of online media have changed, ranging from SEO and online advertisements, to Snapchat filters to YouTube advertising. What’s next for 2018? Read on to find out what online marketing tactics you should pay attention to in the coming year. read more…

How to Select a Collection Agency for Your Dental Practice

So it’s time to select a collection agency for your dental practice.

Where do you start? A great place to begin is with my Accounts Receivable Survival Guide, created specifically for dental practices who have questions about how to choose a collection agency.

Click ahead for the Ninja’s Account’s Receivable Survival Guide!

read more…

SBA vs. Conventional Loans

SBA-Loans-vs-Conventional-Loans

What are the differences between SBA vs. conventional loan products?

At MedTrust Capital Group, we provide the type of financing that will work for your practice’s bottom line. We can help you decide on SBA vs. conventional loans and we work to find the programs that will save you money, or help you expand securely.

SBA loans

Many independent healthcare practices take advantage of SBA loans. The Small Business Administration (SBA) operates several loan programs for startup and advanced-stage businesses. The first thing to know is that you don’t usually apply directly to the SBA for a loan, but to a local bank or lender that participates in the SBA loan program. Some of these loans provide long-term financing for ambitious real estate or manufacturing expansion programs, while others help business owners buy franchise outlets or start new businesses. The SBA requires its partner lenders to adhere to strict underwriting guidelines, so SBA-backed loans are not “easy money,” but they can be a great option for healthcare providers, especially those who want to own their own building.

SBA loans have a bad reputation for being paperwork-heavy and taking a long time. This if often the case with inexperienced lenders. MedTrust Capital Group’s 20 year history of financing ensures the complicated SBA process almost always goes smoothly.

Conventional loans

Conventional loans have competitive rates and terms that vary much more than SBA loans. Conventional lending standards are similar to SBA standards, but can require less paperwork (although not that much less). Conventional loans may charge higher fees and can require more down payment, but can offer much shorter term periods and sometimes lower monthly payments. MedTrust Capital Group specializes in analyzing a healthcare practice’s debt structure and accurately determining if an SBA loan or a conventional loan or a mix of the two will be the right financial decision for your practice.

0 Down Commercial Real Estate Financing for Healthcare Professionals of All Specialties

MedTrust Capital Group provides 0 Down Commercial Real Estate Financing for Healthcare Professionals of All Specialties

MedTrust Capital Group provides financing solutions specific to the healthcare professionals of all specialties.

MedTrust Capital Group offers flexible solutions that cater to the specific needs of your project. Not only do we understand your industry, we are not bound by strict guidelines, low Loan-To-Value Ratios, or bureaucracy.

MedTrust Capital Group offers zero-money down commercial estate loans to owners occupying at least 51% of the building. Contact us to learn more.

Dental Practice Expansion Financing with MedTrust Capital Group

Dental Practice Expansion Financing

Dental Practice Expansion FinancingAre you considering a dental practice expansion? Technology is pushing the dental industry into uncharted territory. Don’t get left behind. Dental practice expansion can be done in many ways. A dental practice can get more visibility through a more favorable location. It can add space for increased capacity. It can purchase new equipment to provide new services. But how do you know if your practice is ready for expansion?

Most bankers and business managers would have you ask yourself these questions:

  • Are you creating positive cash flow?
  • Do you want to move to another part of town, one that provides better visibility and helps grow your client base?
  • Are you outgrowing your current space?
  • Do you want to add more technology?

Two or more yes answers mean your dental practice is ready for expansion. And if the practice is choosing to expand, it will likely need to secure dental office expansion financing. Whether you are relocating, adding a second location, or acquiring a competitor, if your practice can purchase the real estate (with MedTrust Capital, many times with no money down) you will receive great tax benefits, property value, design control, and potential rent income.

Dental practice expansion financing doesn’t just happen with one lender and a single contract. It’s a multi-step process that includes several people to help. You’ll need:

  • A lender who has programs specifically for dentists
  • A real estate broker who knows the market (if you’re buying)
  • Architects and contractors who have experience with dental or medical practices (if you’re building)
  • Dental equipment representatives (if you’re buying equipment)
  • A CPA and/or financial advisor to walk you through short- and long-term financial implications of owning property
  • A business consultant to help you prepare to expand your practice

MedTrust Capital Group is happy to refer from our trusted network if you are seeking someone in any of these roles.  Dental practice expansion financing is possible with the help of MedTrust Capital Group and our trusted network.

Six professionals to talk to before a practice expansion.

 

Buying a Pharmacy with Zero Money Down

Buying a pharmacy with zero money down

Buying a pharmacy with zero money down is possible, depending on your income level, credit history, financial strength, amount of assets, and other factors. MedTrust Capital Group provides solutions specific to buying a pharmacy with zero money down.

We analyze the specific needs of your project and come up with flexible lending solutions that meet those needs. MedTrust Capital Group is not bound by stringent guidelines, low Loan-To-Value Ratios, or bureaucracy like a big bank. After a brief phone consultation we can tell you whether you can start planning on buying a pharmacy with zero money down, or if you’ll need a down payment and how much.

Buying a Pharmacy with Zero Money Down

Pharmacies have existed since ancient times!

MedTrust Capital Group is the transparent financing group. When we can’t help, we put you in touch with the smart groups who can. Buying a pharmacy with zero money down isn’t easy. MedTrust Capital Group can only offer zero-down commercial estate loans to pharmacists that occupy at least 51% of the building they purchase. Zero down financing is not possible for every client. But when it’s possible, a big bank isn’t as likely to tell you.

MedTrust Capital Group has a more diverse range of financial products available for health professionals than a bank– because we only work with health professionals. There are many steps and moving parts when buying a pharmacy. Finance your pharmacy purchase with MedTrust Capital Group.

Recent Healthcare Practice Financing

Recent Healthcare Practice FinancingMedTrust Capital announces recent healthcare practice financing successes.

If you’ve had a hard time getting in touch with us this month it’s because of the tremendous volume of recent healthcare practice financing we’ve accomplished.

First, a $2.9MM loan for a dental practice which ended up saving the practice $21,000 a month. Next, we refinanced a past dental practice client, saving the client some money and keeping their cash flow strong. Past financing clients return to us often and we provide smart, innovative financing solutions. Finally we were referred a client through the Professional Eye Care Associates of America and helped the client’s practice finance over $200,000 for a construction and build-out of new exam rooms.

We can’t help every healthcare professional, but if your professional practice is growing, you’re buying a new practice, starting a new practice, or want to buy real estate for your practice with 0 money down, call us or send a message through our site.

Dental Practice Financing Saves Client $21,000 a month

Dental Practice Financing Saves Client $21,000 a month on a $2.9MM loan

Earlier this summer a clidental practice financing saves clientent came to MedTrust Capital via our Facebook page seeking dental practice financing. After a brief consultation with our chief collaborator, the practice manager was informed that through creative refinancing she could save the practice around $21,000 a month in practice financing.

Several months later their multi-million dollar loan closed, financing the dental practice and freeing up $21,000 a month for the practice to invest and use to build wealth. MedTrust Capital Group guided the client through every stage of the financing process, from the initial proposal, revisions, and the final financing close.

Can we assist you with dental practice financing that will save you thousands of dollars every month? It’s definitely possible. Give us a call or send us a message. We can look at the numbers and let you know if it’s possible.