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Finding Funds for Your Technology Budget

By: Andrew Ventura

Staying current with technology can keep you competitive in today's veterinary market. The right technology can help support practice growth through improved efficiencies and performance, while a technologically advanced hospital can contribute to overall practice value.

But setting aside income for equipment purchases can be challenging. Here are several ways that may help you free up cash flow in order to fund your technology budget:

Consolidate existing debt. Let's say you have an existing 10 year loan that is now into its fifth year. Because of the 5 years of payments, refinancing with a lower-rate debt consolidation loan may help lower monthly payments, potentially free up cash flow, and streamline your debt burden. Types of loans that may be consolidated into one monthly payment include business term loans, leases and lines of credit. If current loan rates are lower than your existing debt, you may be able to free up resources that can then be redirected towards your technology fund.

For example, if you've been paying on a longer term loan for several years, you may want to consider refinancing the debt. The paid principle payments may be significantly affected by having paid down some of the loan.

Tap into practice equity. If you have made a down payment on your practice location or own your business site outright, you have an important asset that you may be able to put to good use -- your practice equity. Tapping into the equity you have built into your practice can provide immediate funds to purchase the advanced equipment or technology that can help you stay current. Equity loans typically include a longer repayment term than other types of loans and you may be able to deduct interest payments on your federal tax return. Consult your tax advisor for your specific situation.

Apply for equipment financing. With competitive fixed rates and a predictable payment plan, an equipment loan for information technology or veterinary equipment purchases may make sense for you. Financing from industry-specific lenders may be available with terms up to 10 years. Keep in mind, though, that more interest may be paid through the longer loan term. However, the application process for an equipment loan may be more streamlined than other types of financing.

About the Author

Andrew Ventura is the West region Business Development Manager for Wells Fargo Practice Finance. Andrew helps doctors successfully transition into an ownership role, by providing not only financing options, but also leveraging his experience in the healthcare market to help ensure a smooth and successful transition. He enjoys speaking with students and works with universities in his market to introduce the nation's next great clinicians to important business concepts and speakers. Andrew can be reached at 855-853-4751 or andrew.ventura@wellsfargo.com

View all articles by Andrew Ventura


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All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.

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