Smart Money Docs

With the floods in the mid-west, the oil crisis, the softening of the financial markets, the decline in the housing market, the US Savings rate approaching zero and the dollar loosing ground around the world, I think it’s safe to say that we RECESSION or not, the economy is fragile.

For Orthodontists who finance more than 50% (more like 70%) of their patients, the impact of the economy may be frightening. I’ve heard that starts are down as much as 25% in many practices and I think that many practices might feel a second wave of pain as their patients start feeling the pinch and slow or stop their repayment plan.

What would I do?

We’ve talked about the fact that I would stop financing patients blindly. Get a credit report, or better yet, get help from Paul Zuelke.

Collect and keep cash! Industry consultants warn against taking too much cash up front, but that is because doctors tend to spend not save. In these tough times, I would collect cash from anyone willing to pay - in fact, I would offer small incentives for early payment from patients currently on no-interest programs.

Once you get the cash KEEP IT! Now is not the time to buy a new house, car or any other toy. It’s time to lay away cash to see you through tough times yet to come.

Most doctors will need help — I recommend Steele Larson Anderson Miller and the new business cash concierge developed in cooperation with RepublicBankAz. Use the comment button below to contact me if you want more information.

Don’t be fooled, tough times are upon us, now more than ever you must…..

Be Smart!

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