The anomaly of healthcare

Women entrepreneurs lead a hard life. They have multiple responsibilities. When their partner meets with an unforeseen situation such as death, how do they manage their life? They could start a small business via applying for loans through traditional banks, credit unions and online lenders. Such funds are disbursed either as lump sum payment.

All loan claims filed with the bank are subject to audit. However, what if the small business is in the space of healthcare? And the small business does not have a finance team to prepare the paperwork that can be submitted to the bank ? If the loan is non-performing, then do such borrowers come under the scanner? However, because of the rise of talent in finance & investment space, such small businesses would have access to talent pool. Such finance & investment team can advise the bank to allocate such unpaid debts as losses and mention it under the particular called as "charge off".

The pandemic led to rise in commercial real estate being available for the market. There was a steep decline in property values. However, is there a provision to provide a gift to such women entrepreneurs on a professional capacity, without it being considered as a bribe? Real estate is a trouble. Losses are inevitable.

Such entrepreneurs can take more than one office-related loan. In case of a non-performing loan, this loan can be sold further by the banks. The loans might have been taken for property improvement. However, once the project got completed, they had problems leasing it. The entrepreneur can make a travel plan to pay a visit to a large healthcare company based out of New York & Pennsylvania.

Once the company lands into liquidity problem, bankruptcy is inevitable. The assessment & evaluation of recovery might be challenging. These are inevitable because of the following aspects:

a. High loan interest

b. High minimum annual revenue requirement for small business loans

c. Unreasonable short term repayment terms

d. Geographical restriction to not have services in specific countries

e. Time period of business operation prior to operating for loan

f. Requirement of personal guarantee

g. Specific criteria for individual borrowers such as line of credit

h. Restrictive covenant on balance amount which is unpaid

i. Payment of annual fee after first year

j. Short repayment cycle

k. Lack of mobile application for making payment

l. Requirement of minimum gross annual sales

m. Non-disclosure of financial costs and turnaround time

Note: This is an excerpt of an article that I am reading.