A Crossville, TN physician practice adding a second office can fund it in parts: equipment financing or a term loan for movable equipment, a working capital loan for new staff wages, and the landlord or its own cash for the suite. The invented example in this article prices each part, including the loan payments that fall due before the new office is fully booked.
Invented second-office case: $23,120 of movable equipment over 54 months costs $534.00 a month. Two invented new hires add $3,860 per biweekly payroll, $23,160 to $27,020 over 90 days, and a 15-month working capital loan for the higher figure adds 3 of its own payments inside those 90 days. Suite work stays outside this site.
Second-office equipment: a spirometer, a vaccine refrigerator and an autoclave
Invented package for a second office, every price invented: a portable spirometer at $3,240, two digital exam-room scales at $1,190 each, a plug-in vaccine refrigerator at $6,350, a tabletop autoclave at $5,780, a phlebotomy chair at $1,960 and a 12-lead ECG machine at $3,410, $23,120 in all.
At a 10.05% annual rate for 54 months, each invented installment is $534.00; across all 54 the practice pays $28,836.00, which includes $5,716.00 of interest. The practice can price this as equipment financing secured by the items, or as part of a term loan.
The suite is a separate matter. Sinks, exam-room wiring, walls and any other work on the building are property work outside this site, whether the landlord or the practice pays for them.
Medical practice loans for front-desk and medical assistant wages at the new office
Invented staffing: a medical assistant and a front-desk hire at the second office add $3,860 to each biweekly payroll in this example.
A 90-day stretch holds 6 or 7 paydays, depending on where the first one falls, so the invented wages come to $23,160 or $27,020.
Suppose the practice covers the higher invented figure with a 15-month working capital loan at a 13.55% annual rate. Each invented payment is $1,968.31, and with the first one due 30 days after funding, three of them also land inside the 90 days. The invented cash the stretch calls for is therefore $27,020 of wages plus $5,904.93 of loan payments, $32,924.93 together.
Medical office loans for a second Cumberland County, TN location
A second-office request can bundle movable items and operating costs: the lease security deposit, exam-room instruments, phones, computers and check-in tablets, plus equipment like the package above. Buying the building, or construction inside the suite, is real estate or property work and sits outside this site.
Cumberland County, TN had 40 offices of physicians on the County Business Patterns employer list for 2023 (NAICS 6211).
Physician offices with a ZIP 38555 address numbered 35 employer establishments that year (ZIP Code Business Patterns).
Nonemployer Statistics, a separate series, listed 24 county physician offices without paid employees in 2024. Trade figures and more practice cases sit on the medical practices page.
Lining up the three parts so their dates fit together
The equipment, the wages and the suite each run on their own calendar, and a request goes more smoothly when the practice knows those dates before the first call:
- The date each equipment quote expires and the delivery window the vendor offers
- The lease start date and when the security deposit is due
- The first payday for the new medical assistant and front-desk hire
- The day the second office expects to see its first patients
With those dates written down, the owner can talk through which piece needs money first. In the invented case, the deposit and the equipment come before any wages, so the equipment request and the working capital request may be priced on different days, and each offer can be read on its own total.
Insurance remittances and patient payments a funding partner may review
A practice's deposits arrive from several directions: insurance remittances on their own timing, copays at the desk and card payments. A funding partner may ask for business bank statements and may also ask for an accounts receivable aging report or remittance summaries to see how claims turn into deposits.
Records a practice can gather before that review:
- Six months of business bank statements
- The billing system's accounts receivable aging report
- The latest business tax return
- Monthly amounts owed on each loan and lease already open at the practice
- The second office's signed lease, or the landlord's letter of intent
Those records stay off the request form, which collects contact details and three ranges; a partner reviewing the request may ask for these records afterward. Other worked cases are on the blog.
By Crownreach Lending · Updated
