Physicians Capital Frequently Asked QuestionsQ. Can I use this money for anything? A. Yes. You can use it for lifestyle, tuition, vacation home, etc.
Q. What is the interest rate for a Physicians Capital loan? A. Our cost of capital is higher than a bank, so we have to charge a modestly higher interest rate than a bank. We underwrite each loan and assign an interest rate based on the risk profile.
Q. What are the loan repayment terms? A. All loans are five years. Repayment terms vary based upon the risk profile and available cash flow from the ASC or other medical services facility. Generally, in the first 2-3 years of the loan, a higher percentage of your cash distribution from the ASC is used for principal and interest payments. All remaining cash goes to you.
Q. Do you make loan decisions based on my personal credit history? A. No. Physicians Capital makes loans based on your ownership interest in an ASC and your future cash flow from that ownership interest. As such, our financing may be the only option for physicians just starting out who want to buy-in to a medical services facility partnership. Q. So, I have no personal liability for this loan? Are my personal assets at risk? A. Your personal liability is limited to the amount you borrow against your ownership interest in the medical services partnership. None of your other personal assets are pledged.
Q. How much “red tape” is involved with getting a loan? A. Very little. We review the financials and the operating agreement of the ASC and your current personal financial statement.
Q. How long does it take to get my loan? A. Generally, as soon as you provide the needed information, we can fund your loan in less than 10 business days.
Q. What if one member of my partnership does not want to recapitalize with Physicians Capital but the rest of us do want to? A. We will make individual loans to physicians. Dissenting physician partners may simply decline to participate.
Q. How do I apply? A. Contact us directly at 615-342-0824 or email us at Info@PhysiciansCap.com. |