At Value Capital Funding, we’re committed to helping medical practices of all sizes secure the financing they need to succeed. Recently, we had the opportunity to work with a medical practice that was referred to us by one of our newest accountant referral partners. The medical practice was struggling with high-cost debt and looking for a more sustainable solution.
The practice, which had been in operation for over a decade, had previously taken out three merchant cash advance (MCA) loans to cover various expenses, including equipment upgrades and staffing needs. However, the high-interest rates and frequent payments were taking a significant toll on the practice’s finances, with daily and weekly payments adding up to approximately $18,750 per month.
After reaching out to Value Capital Funding, the practice was able to secure a low-cost FDIC Bank loan of $250,000 using our platform approach. The practice used the loan proceeds to self-refinance their existing MCA loans, consolidating their debt into a single, more manageable monthly payment.
Thanks to the lower interest rate and a longer repayment term of the FDIC Bank loan, the practice’s monthly payment was reduced to approximately $3,600, resulting in savings of more than $15,000 per month, or $180,000 per year when annualized. This extra cash flow allowed the practice to reinvest in their business, hiring additional staff and investing in new equipment and technologies.
We’re thrilled to have helped “Dr. Jones” and his practice achieve greater financial stability and success through our FDIC Bank financing program. With the consolidation of their high-cost MCA loans and the low monthly payment of their FDIC Bank loan, Dr. Jones now has greater peace of mind, knowing that his practice can sustainably thrive with more manageable debt service payments.
At Value Capital Funding, we’re committed to providing our clients with expert support and guidance every step of the way. Whether you’re looking to refinance high-cost debt, upgrade equipment, expand services, or manage cash flow more effectively, our team of commercial financing consultants is here to help. Contact us today to learn more about how FDIC Bank financing can benefit your medical practice and help you achieve your financial goals.