Financing for the ASC industry
Evolve Bank & Trust is proud to offer focused financing for Ambulatory Surgical Centers (ASCs) through Physicians Capital, a specialized division designed specifically for the ASC industry, offering tailored financing to current & prospective physicians partners, the ASC operating entity, and ASC management companies. Additionally, Physicians Capital provides financing for multiple physician and center needs including partnership/membership equity transactions, relocation/expansion of ASCs, as well as financing for acquisitions and new equipment purchases.
Our knowledge and industry experience allows for an efficient and streamlined loan underwriting process, customizable loan structure, and favorable repayment schedules with competitive interest rates.
Individual Financing
Physician Ownership / Partnership “Buy-in” Loan
Physicians Capital believes ownership in an ASC can be a profitable long-term investment for a physician. Yet, with significant education loans to repay, many physicians may not have the cash on hand to purchase the ownership or the personal assets a local bank may require as collateral for a loan.
Physicians Capital offers a special loan program to help physicians purchase ownership in an ASC. For loan underwriting, our primary focus is the financial performance of the center, and then, we review the financial stability of the physician.
We have financed physician partnership/equity transactions throughout the U.S., including Alaska and Hawaii. Our physician borrowers have purchased ownership in centers managed by many of the top ASC management companies.
Physicians Capital understands that all ASC membership / equity purchases may vary.
For typical Physician “Buy-in” loans ranging from $50,000 to $1 Million:
- Simple loan application process
- We will finance ownership / shares purchased from the operating entity, the ASC management company and/or purchased from current physician partners in the ASC operating entity.
- “Borrower” can be individual, a partnership, a trust or entities such as an LLC or Sub-S Corp.
- The loan is considered a commercial loan and not reported to credit reporting agencies
- Up to 100% financing of the ownership purchase
- Competitive interest rates
- 5 year repayment plans
- No prepayment penalty
Center Financing
ASC Center Financing
Physicians Capital is a single source of multiple financing options for ASCs. We understand that each need for financing is unique to the borrower, therefore, we spend the time to fully understand the transaction and offer a loan structure that is unique to the loan request.
Typical Center Loans range from $100,000 to $5 million:
- Relocation / Expansion of current centers
- Partnership/ Member interest “buy-outs” of current partners who wish to retire or relocate
- Refinance or consolidate debt, including refinancing intercompany borrowings
- Financing for significant investment in new equipment
Frequently Asked Questions
Physicians Capital is focused on the continual development of financial services designed specifically for the ASC customer, both physician partners and ASC management companies.
For physicians who wish to finance the ownership purchase in an ASC operating entity, Physicians Capital offers a loan product whereby the purchase amount and any fees are 100% financed. The following FAQs gives an overview of the loan structure and repayment.
What is the difference between Physicians Capital and Evolve Bank & Trust?
Physicians Capital is a division of Evolve Bank & Trust (EB&T).
Will the loan be in my personal name?
The loan will be in the name of the physician or the name of the physician’s personally controlled (owned) LLC, Sub-S Corporation or Trust. If the loan is in the name of the LLC, Sub-S or Trust, the individual physician will be a personal guarantor for the loan.
Will the loan be reported via my personal credit bureau report?
Physicians Capital loans are considered commercial loans. The commercial loan is not reported to the credit bureau agencies.
What is the loan repayment schedule / term?
Typically, Physicians Capital loans will be divided into quarterly principal payments + accrued interest payments; typical loan term is 5 years (20 quarterly payments). Example: a $100,000 loan will have 20 quarterly payments of $5,000 + accrued interest.
What is the interest rate?
The interest rate will vary by loan. As a division of Evolve Bank & Trust, Physicians Capital has the flexibility to tailor a loan product to best meet the borrower’s individual goals.
What are the fees charged?
Physicians Capital charges a facility fee + legal fees. All fees (facility & legal) are added to the ownership purchase price. The combined balance is the loan amount that is termed over the 5 years (20 quarterly payments).
Will my spouse be required to sign the loan as a “co-signor” or “guarantor”?
Typically, the spouse is not required to sign the loan as a co-signor or guarantor.
How is the loan typically repaid?
The surgical center will send ownership distributions directly to Physicians Capital. Distributions are applied to accrued interest and principal. If distributions are greater than the scheduled payment, the borrower has the option to prepay the loan or personally receive the overage funds.
Can the loan be “paid-off” early without penalty?
Physicians Capital loans do not have a prepayment penalty.
Am I personally liable for the loan?
If ownership distributions are not sufficient to pay the loan accrued interest & principal payment due, Physicians Capital will ask the borrower to pay the balance of the accrued interest & principal payment.
