Medical Business Financing

An Overview of Medical Practice Loans

If you're a medical doctor, dentist, or healthcare specialist seeking a business loan to start, purchase, or expand your business, chances are you'll notice there's a lot of options and some may be unclear. Finding a loan product that makes sense requires research and be time consuming. Below we summarize the best loans for a medical practice.

A medical practice loan is a loan designed to provide financing for a variety of different business needs, such as purchasing equipment, acquiring an established practice, operational expenses, and starting a new practice.

Many people think of applying for an SBA loan right away. Overall, SBA loans are one of the best small business loans offered. The SBA 7(a) loan is very popular because of its great terms and flexibility. These loans provide businesses with some of the best interest rates and repayment terms that extend further out than most lenders.

However, since SBA 7(a) loans are sought after, they're challenging to get done. One of the qualifications you'll need to have is a high credit score and established revenue.

Moreover, the SBA loan application process requires significant amounts of documentation, so there can be quite a bit of sending documents. Unfortunately, since it insured by the govt., you'll need to be patient for two to three months while your loan is under process.

Qualifications and Terms

To be eligible for an SBA 7(a) loan your medical practice will typically have to meet the following conditions:

  • Yearly business income above $180,000
  • Minimum credit score of 680
  • More than 2 years of business history

As a result of the above requirements, the SBA 7(a) loan isn't a very good medical practice loan for physicians and medical specialists who require quick access to funds. Please review the companies below for what we belive are the leaders in each category.

Best Choice For Lender Loan Amounts Rates Terms Notes
SBA Loans SmartLoan Biz $30,000 - 5 million 4.75%-7.00% 10-25 Years Need 2 years in medical business
Must have 640 credit scores or above
Faster process than typical banks
Has attractive interest rates
Start Now
Line of Credit Kabbage $5,000-$250k 1.5%-10% up to 18 months Requirements:
At least one year in business;
$50,000 revenue per year or $4,200/mo revenue for 3 months
No loan origination fees
High interest rates
Start Now
Business Loans Bank of America $25,000 to unlimited 3.00% and up maximum of 60 months (five years) Requirements
At least 2 years of existing ownership
Minimum of $250,000 in annual revenue Start Now
Invoice Factoring Blue Vine up to $5 million varies 0.25% weekly Not Applicable Conditions:
Minimum of 3 months of business ownership;
$10,000 in monthly revenue
530 minimum credit score
Needs to be a B2B business
Start Now
Low Credit Scores OnDeck $5,000-$500,000 9% 3-36 months Conditions
Minimum of one year in business
$100,000 required annual revenue
Some lenders have higher interest rates
A possible hard inquiry on your credit report
Start Now
Working Capital SmartBiz $50,000-$1 million varies varies Pros:
Simple, straightforward application process
A possible hard inquiry on your credit report
Start Now

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