Industry financing

Medical Practice Financing

Financing solutions for medical practices, healthcare providers, and medical offices. Medical practice financing helps medical practices finance equipment, practice acquisition, expansion, and working capital. Common uses include medical equipment, practice purchase, office buildout, technology upgrades, and working capital. Loan types: SBA loans (6–13% APR, up to $5M), equipment financing (6–30% APR), term loans ($50k–$2M+), and lines of credit ($25k–$500k). Approval timelines range from 1–4 weeks for SBA to 24–72 hours for alternative lenders. Requirements: 2+ years in practice (for SBA), 600+ credit, strong financials.

Common Financing Needs

  • Equipment & Technology: Medical equipment, diagnostic systems, electronic health records (EHR), practice management software
  • Practice Acquisition: Buying existing practice, partner buyouts, practice consolidation, real estate purchase
  • Expansion & Growth: Adding exam rooms, opening new locations, hiring additional providers, marketing and patient acquisition
  • Working Capital: Cash flow management, payroll and expenses, insurance reimbursement gaps, unexpected expenses

Best Loan Types for Medical Practices

1. SBA Loans — Best for practice acquisition, real estate, and large expansion. Rates: 6–13% APR (lowest), Terms: 5–25 years, Amounts: Up to $5M. Requires 2+ years in practice.

2. Equipment Financing — Best for medical equipment, diagnostic systems, and technology. Rates: 6–30% APR, Terms: 2–7 years, Amounts: $5k–$500k+. Fast approval (24–72 hours).

3. Term Loans — Best for general practice needs, expansion, and working capital. Rates: 8–25% APR, Terms: 1–5 years, Amounts: $50k–$2M+. Fixed monthly payments.

4. Business Line of Credit — Best for ongoing cash flow, payroll, and unexpected expenses. Rates: 8–25% APR, Limits: $25k–$500k. Draw as needed; flexible access.

Why Lenders Favor Medical Practices

Stable Revenue: Medical practices generate consistent, recurring revenue. Patients return regularly, and healthcare is essential. Lenders view this as low risk.

High Profit Margins: Medical practices typically have strong profit margins. This improves ability to repay loans and qualify for better rates.

Valuable Equipment: Medical equipment holds value and serves as collateral. Equipment financing is readily available with competitive rates.

Qualification Requirements

  • Time in Practice: 2+ years (for SBA), 6+ months (for alternative lenders)
  • Revenue: $50k+/month typical for established practices
  • Credit Score: 650+ (for SBA), 600+ (for alternative)
  • Licenses: Valid medical license required

Frequently asked questions

Can I finance a practice acquisition?
Yes, SBA loans suit practice acquisitions with financing up to $5M at rates starting around 6% APR. Requires 2+ years in practice and solid financials. Alternative lenders also provide acquisition financing options.
What's the best loan for medical equipment?
Equipment financing works best since equipment serves as collateral, rates remain competitive (6–30% APR), and approval happens quickly (24–72 hours). Terms align with equipment lifespan (2–7 years).
Can new practices get loans?
New practices may qualify for equipment financing or alternative lenders with 6+ months operating history. SBA loans require 2+ years. Consider acquisition loans if purchasing an established practice.

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