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