If you decide it is time to take your Space & Equipment to the next level, you are going to need to start thinking about how to finance your renovations. It can be an overwhelming thought; in fact, some people dread the financial process so much that they postpone their renovations for years! Fortunately for you, millions of other practices have undergone the process— and with some foresight and preparation, it can not only be painless, but also provide you with an invaluable peace of mind.

Dr. Szatkowski, one of our 5X members, has this advice for those considering renovations: “Stop thinking about it AND DO IT.”

The list below will give you a thorough understanding of what to expect when financing your renovations…

What elements do lenders consider when financing your renovations?

What do you need to do to keep your practice and finances in good shape for a loan?


The 5 C’s of Financing Your Renovations


  1. Credit Worthiness: First, remember to ALWAYS check your credit report.
  • You can receive a FREE copy of your credit report every 12 months
  • Requesting your credit report through the credit bureau agency or through an organization that is authorized to provide Consumer Credit reports will not affect your score
  • Pay bills on time, keep balances low on revolving accounts such as credit cards, open new accounts reasonably.


  1. Capital: Next, take a look at your liquidity.
  • Will they consider you a “saver” or a “spender”?
  • Having liquidity or cash-on-hand will strengthen your request for financing, because it shows an increased ability to pay


  1. Capacity: Third, make sure you fully understand your Practice Cash Flow.
  • Does your business support the debt of the practice and the doctor?
  • Know your numbers: what is your practice overhead? Its profitability?
  • Cash flow tells the true story of a company’s financial health and helps a lender measure your capacity for future financing


  1. Collateral: Fourth, you must finance against the equity in your practice.
  • Understanding your annual revenues (collections) is important, but it is equally important to know the debt that is currently against your practice
  • The more equity you have in your practice, the stronger the collateral is considered


  1. Character: Finally, remember that your personal financial history will be under scrutiny.
  • Regarding your credit history and repaying your previous debt


If you want more information on how to get the ball rolling on your Space & Equipment improvements— or you just want to bounce a few ideas around with our team of experts— give us a call at 866-917-2808!