It's essential for de novo ASCs to choose lenders who are knowledgeable about the industry, business needs and financial factors for success, according to Pinnacle III Principal Partner Richard DeHart.
Mr. DeHart shared three steps ASCs administrators should consider when choosing the right lender in a recent post.
1. Send a request for proposal to at least three banking entities, including one financial institution from the de novo ASC's local market and banking entities who will be strong providers of necessary services and resources.
Give yourself at least 90 days of lead time before project funds are needed.
2. Carefully evaluate the terms of proposals received, comparing variables such as rates, fees, maturity dates, early pay-off terms, corporate guarantees and personal guarantees.
Consider asking an attorney to review the agreements for hidden issues or concerns.
3. Determine how the banker would work as a long-term partner, in terms of accessibility, promptness and flexibility. Ask these three key questions to ensure they're equipped to meet your service needs:
- How many ASCs do you currently work with/have worked with?
- Who will be our direct contact should we have any questions or concerns?
- What happens if additional funds are needed in the future or a re-amortization needs to occur?