February 14, 2023
One important topic that often gets overlooked by doctors managing a practice, is how to finance medical practice expenses on an ongoing basis. At Nitra, we can find the perfect medical practice financing for you! Apply now with our online application and get a response in minutes. No hassle.
Running a successful medical practice is no easy task. It takes time, energy, the development of new management skills—and financing.
Though many doctors obsess over costs at the launch of their practice, one important topic that often gets overlooked is how you finance medical practice expenses on an ongoing basis. The right financing can lower costs, maximize flexibility and ensure that you have money available when you need it. How you will meet your capital and cash flow needs is one of the most important decisions you will make—and one key tool at your disposal is selecting a business card built for doctors.
A solid business credit card is a necessity for a modern medical practice. It allows you to operate with confidence, knowing that your ability to pay practice expenses can withstand mistakes in billing, dips in revenue or any other obstacle that comes your way.
“There are plenty of excellent reasons to open a business credit card,” Forbes wrote earlier this year. “Doing so will help you keep your work and personal expenses separate and enable you to build a credit history for your business. But business credit cards also present excellent rewards opportunities … and other perks that can save you time and money.”
There are many business credit cards on the market and all tout specific advantages, from cash back to various affinity programs. Business cards target small business owners with special features designed for companies. You apply for these cards in much the same way you apply for a personal card, but the liability accrues to the business rather than you personally.
Sifting through the options requires more than just looking at interest rates and annual fees. The additional benefits attached to each card, specifically the so-called “cash back” rewards that return a percentage when you finance medical practice expenses, are extremely important. That’s where you realize the cost savings.
Most credit cards on the market differentiate between two key categories of spending: basic and rewards-eligible. Regardless of which business card a doctor uses, they will have expenses that are not eligible, such as malpractice insurance, professional advisors like accountants and attorneys, company taxes and payroll.
But do not underestimate the potential advantage of maximizing the benefits in categories that are eligible. Financing medical practice expenses such as office supplies, software, medical supplies and specialized equipment can add up to thousands of dollars in your pocket every year. At some practices, these costs run to hundreds of thousands of dollars annually.
You want to make sure you're maximizing rewards.
Many finance writers frown on credit cards or business cards, but the truth is that these cards are extremely useful business tools for a medical practice. Many doctors would struggle without the ability to finance medical practice expenses on a card. When used carefully, cards allow you to feel confident that you can cover monthly expenses, lower costs, obtain special offers from relevant vendors—all based on purchases you have to make anyway.
Here are some of the primary reasons to shop for a business card for doctors:
Physicians have advantages that many other small business owners do not. A credit-worthy doctor with a salary well above the national average can take advantage of some fantastic business card benefits. But how do you choose which card to use?
Start with an idea of how you will use the card to finance medical practice expenses. Will you use it for large equipment purchases or monthly medical supply orders? Will you pay the card off each month or will you carry a balance? Are there specific benefits or features that matter to you? When you have an idea of what your needs are, you can go shopping online and compare cards. Here are some suggestions to consider:
Once you finish shopping for a card, completing an application is the final step. This is usually done online. You can fill out the application whenever it is convenient and generally receive a decision very quickly.
Get some documentation ready so that you can answer basic questions about your business and its owners. This may include your Employer Identification Number (EIN), National Provider Identifier (NPI) or Social Security Number. Details on your business finances, like annual revenue and average monthly spending, are also usually required.
Don’t apply for more than one card at a time. Instead, choose a card, apply and wait for an answer. Doctors with solid credit and income are likely to get the answer they want. When you get an approval, follow through and set up online access to your account and other benefits that make practice management easier. Put it on file with key vendors and start using it to maximize benefits.
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