The Lending Equation

March 3, 2019

The Lending Equation

Common Sense Commercial Loan Criteria

Character. This is demonstrated by credit and most recently, credit score. Have you paid your bills in the past? Judgements? Percent debt against credit lines greater than 30%?

Capacity to Repay. This refers to the actual ability of the borrower to repay the debt and how this will be done. This can be from the earnings from a business, cash flow from the investment property, or, the sale of the investment property. It could even be a forward commitment from a long-term lender in the case of the initial loan being short term.

Collateral. Collateral is what will be liquidated should the borrower not pay the loan when due. Note: the lender requires a margin above the loan amount to cover collection costs should it come to that.

Liquidity.  This is what the lender considers “Plan B”. In case the primary means of payback fails, you need at least “interest carry” in the bank until the situation is corrected. NOTE: this can also be satisfied in some cases by stable and substantial earnings of the borrow. Either from his/her “day job” or proven by historical tax returns where assuring the continuity.

“Skin in the deal”. The lender wants to make sure the borrower is taking great care of the collateral, doing everything possible to assure the project’s success. There is no better way assure this than the borrower’s hard cash investment in the project/property/collateral.

Conclusion: Whether a hard money loan, conventional, conforming loan, hybrid or alternate conforming loan, one or more of the above “always” come into pay. When the loan is reviewed by the lender, the transaction must make sense. Some new investors have been taught there is 100% hard money available. It does not fit into the equation since it costs 35% of the asset value to foreclose for non-payment. Thus, the maximum loan to value is 65%. Make sense?

If one of the above is weak, a strong “other” may compensate making for a loan approval, again, make sense?

Real estate portfolio benefits?

February 7, 2019

Real estate portfolio benefits?

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for [with properly leveraged funds], and managed with reasonable care, it is about the safest investment in the world.”  Franklin D. Roosevelt.  See GPA Capital/Investopedia Article

There is no better way to experience not only capital gains, but, long term stabilized income. Appreciation is an added benefit to this as well.

For this reason, as the economy is “heating up” GPA Capital has developed the tools you’ll need to take full advantage of these opportunities. See our website for useful tools including express loan applications.   Here is a guide to help you choose the right business loan, or, if you’re interest in investment, please give a call for a one-on-one.

Commercial Loans That Close

February 5, 2019

Commercial Loans That Close

Now that you’ve printed out the GPA Capital 2019 Planner contained in our last blog, it’s time to get going. We’ve streamlined our website and focused on our “Core Business” of “Lending”. Please stay tuned for updates. We wanted to get the year started off right. We’ve aligned ourselves with wider and deeper Capital Partners. We’ve seen the results already; January was a banner month.

Loan application are easier and quicker for 2019. You can apply directly on-line for each of the three main products:

Free Real Estate and Business Lending Guide Download

  1. Express Real Estate Loan Application
  2. Express Investor Real Estate Loan Application
  3. Working Capital and Operational Loan Application


2019 Funding Prep

December 28, 2018

2019 Funding Prep

To help you map out your profitable 2019, GPA Capital designed an exclusive planner for our readers [Planner]. This includes a full range of what you need to become more profitable, expand, fulfill your capital needs. For the next two weeks we are offering a no-cost review to help you learn your option to maximize your cash flow.

For a confidential consult, hand-write (or type) your input on the attached planner and fax back to my private fax line 866-892-1167.

As always, thank you for your trust and confidence!

Owning your office has great advantages.

September 21, 2018

Owning your office has great advantages.

Additional revenue, say by providing Nerve Conduction Velocity (NCV) and/or Cardiac Studies in there practice, rather than referring out in one’s medical practice can easily provide the 10% down payment for an SBA loan. Owner occupied by 20% and 80% leased out – your rent is covered. Here’s a matrix with shows the details:

Description SF Lease/SF Gross Annual Lease Per MO
Current lease data 3,000 $15.00 $45,000 $3,750
Building Purchase 15,000
Owner Occupied 20.00% 3,000 $0
Tenants 80.00% 12,000 $15.00 $180,000 $15,000
Gross Income $180,000
Vacancy -10.00% ($1,500)
Expenses -25.00% ($45,000)
CADS $133,500
P&I PMT ($45,656)
Taxes & Insurance 3.00% ($15,750)
NOI $72,094
ROI (cash on cash) 137.32%

Working Capital, Patient Care: Nerve Conduction Velocity: Benefits and Detail

August 2, 2018

Working Capital, Patient Care: Nerve Conduction Velocity: Benefits and Detail

Summary: Many physician ask us about working capital and loans. In many cases, the solution is right in front of them. Below is a summary of NCV testing which provides both, enhanced patient care, assuring better outcomes and increased working capital for the medical practice.

Patient Benefits:

  • Convenience: Patient stays right within the comfort zone of your practice with familiar location and office.
  • Timely: Patient is scheduled for test in days (not months) so their pain can be addressed more quickly.
  • Friendly & professional testing technician: Our certified technicians are professional, and patient focused.
  • Rigorous report: Tests are read board-certified neurologist and provide an extensive report in 2-3 days.
  • Continuity of Care: As insurance guidelines dictate, the patient may be tested every 6 months while the condition being treated remains. Ongoing testing will allow doctors to track the progress of the complaint and/or treatment to determine if it is improving or worsening.
  • Therapy support: Reports verify and define the need for the treatment plan – including physical therapy.
  • Patient out-of-pocket: Given the number of patients on high-deductible plans combined with the fact that 40% of Americans are unable to cover an unexpected expense of $400 or more, co-pays and deductibles can be a major problem for many. Depending on the billing model chosen by the practice, the patient’s co-pay can be zero to minimal. (see page 2)

Physician Benefits:

  • Patient Care and Control: Physicians maintain supervision of patient care for better Continuity of Care.
  • Quickly confirm or alter your patient’s treatment plan as needed. Testing corroborates injuries and, therefore, confirms medical necessity. This validates your CPT code.
  • Extensive reports on patient so that treatment plans are defined or modified in a timely fashion.

 Practice Benefits:

  • Liability: Solid documentation to support treatment plans and verify patient outcomes and progress.
  • Revenue: Allows practice to capture more potential patient revenue which can result either in re-investment into the practice and/or net income to the shareholders.
  • Patient referrals: In-house diagnostics sets your practice above others. This positive patient experience leads to their referrals of other patients within their center of influence.

The Ugly Truth About Merchant Cash Advances

June 14, 2018

The Ugly Truth About Merchant Cash Advances

If your practice has either struggled financially in the past, or is struggling right now, you know the pressure is overwhelming. This leaves many doctors in a panic to take any deal available, including bad deals like a Merchant Cash Advance (MCA)*. To make things worse, once you’re in an MCA, you’re “un-bankable” to most other lenders until it’s paid off. Learn more about MCAs here.

We’ve had many doctors ask us if we can get them out of MCA’s that are putting a huge squeeze on their cash flow. Yes, we can!

GPA Capital will refinance your MCA (and other short term debts) into a long-term SBA Loan. But this is Step 2. Step 1 in the GPA Capital Plan is to first increase your Internal Capital Growth dramatically, allocating that revenue to pay off any MCA or other business/personal loans.

GPA Capital uses this reported income for those six months to qualify you for a long-term SBA loan. Apply Here so that we can get you out of this pressure and on the right track.

*On the average, Drs. receive 6 to 8 MCA solicitations/MO, yep and 24 hour funding to boot!

A “make sense” proposition!

May 15, 2018

A “make sense” proposition!

Many healthcare providers that come to us for commercial loans find the revenue from implementing a new service like Range of Motion and Muscle Testing provides the income they need without a loan (under $100k). For larger loans, they find that by implementing this, they don’t use their Operating Capital for Debt Service. The service costs you and your patient nothing (you make $3-10k/mo based on frequency), improves your level of service, patient loyalty and improves outcomes.

Find out more here: ROM/Muscle Testing Handout

Click for “How to Get Started ROM/Muscle Testing Quick Start Guide”

Financial Trends 1st Quarter 2018

March 3, 2018

Financial Trends 1st Quarter 2018

by: Charles Pope, Certified Commercial Lender

February was a “banner month” for GPA Capital’s funding program. THANK YOU! Yes, we helped many Medical Practices with their Finances, but, we also learned what’s trending in today’s Healthcare Financial Environment and, as promised, we are sharing what’s trending:

  • A large percentage of physicians who “threw the towel in” several years ago, sold their practice and went to work for a larger company, e.g., a hospital, realized that “that” was not a panacea and are re-entering private practice.
  • That being said, the game has changed over the past several years. We can now define the PPR (Potential Patient Revenue) more accurately than ever. This allows the provider to see less patients, provide higher quality of care and receive more income. This allows us put these systems in place for our clients, enabling us to accurately forecast income which, in-turn, is used to demonstrate the physician’s ability to amortize borrowed funds.
  • A much larger “Sales and Marketing” budget is now required. This is not only true for the roll-out, but even in a debt consolidation refinance, the fresh start budget has proven to be necessary to break the mold of the downward spiraling cash-flow.

Why a capital company endorses mobile diagnostic testing?

February 8, 2018

Why a capital company endorses mobile diagnostic testing?

Simple – GPA Capital’s clients have found that implementing it not only improves the quality of their practice, the additional revenue makes it much easier to pay back their loans. With over 25 years of mobile diagnostic testing and hundreds of satisfied physician clients across the country, GPA Capital’s mobile diagnostic imaging partner guarantees Better Patient Outcomes, Continuity of Care, and Increased Revenue.


7 Facts Primary Care Providers Need to Know About Mobile Diagnostic Testing

1. Patient Comfort and Convenience

Patients prefer the familiar surroundings and service of your office and staff.

2. Patient Care and Control

Physicians maintain supervision of patient care for better Continuity of Care. Quickly confirm or alter your patient’s treatment plan as needed.

3. Patient Retention

Your practice experiences improved patient retention through in-office testing and reducing referrals. Most importantly to your patients, we do everything we can to cover your patient’s deductibles (up to $1,000).

4. Board Certified Radiologists, Neurologists, and Cardiologists

Notable interpreting physicians are experts in their fields and give accurate and timely diagnostic evaluations.

5. Capital Expense Control

This program costs you nothing – no costly outlay for testing equipment, additional staff, or supplies. In fact, you are paid a “Fair Market Rent” of $1,000 every day of testing and you bill for all follow-up visits to review the test results.

6. Clinical Services

A full array of the most valuable diagnostic testing and superior patient service capability.

7. Decades of Expertise

From skilled and compassionate technicians to notable board-certified physicians, GPA Capital and our imaging partner’s management expertise is an invaluable addition to your practice team.

Here’s a quick video explaining the process and how easy it is to begin.


To explore adding this to your practice, get started here.