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Medical Practice Loans: Best Options for Doctors in 2023
There are various reasons why a business owner or physician might need a medical practice loan, including starting or acquiring a medical practice, purchasing expensive medical equipment, launching a marketing campaign, or paying employee salaries.
Written by:Tetiana Sitiugina-Babiuk
Reviewed by: Sarah Brooks, Personal Finance Writer and Editor
One of the biggest challenges of opening your own medical practice is the large financial investment, estimated to be upwards of $100,000. Once you are in business, you can expect to spend over $1 million annually on operational expenses alone, including financing medical equipment or expanding to a new location. Because of these expenses, a medical practice loan from a trusted lending source can prove incredibly useful.
A medical practice loan is a small business loan geared towards physicians and business owners who own or are looking to own a medical practice. Types of medical practice loans include short-term loans, working capital loans, business lines of credit, commercial real estate loans, and more. Whether you need $50,000 or $2 million, we have a lender that can meet your needs.
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Top Picks for Best Medical Practice Loan
- American Express® Business Line of Credit- Best for Fair Monthly Revenues
- Backd - Best for Cheapest Interest Rates
- National Funding - Best For Equipment Loans
- Bluevine - Best for Business Line of Credit
- GoKapital - Best for Early Payment Discounts
- Biz2Credit - Best for Commercial Real Estate Loans
- Fundbox - Best for Business Term Loans
With a virtually endless selection of medical practice loan offerings from countless lenders, choosing the right financial product can be challenging. Our financial experts have reviewed hundreds of products to round up some of the best business loans for doctors on the market. When ranking the loan products, they used our ranking methodology and took a close look at factors like loan terms, rates, fees, customer support, and more.
Best Medical Practice Loans for 2023 - Full Overview
Our financial experts ranked some of the best loans for physician practices available on the market today.
Best Overall
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American Express Business Blueprint™ - Best for Fair Monthly Revenues
Average Monthly Revenue
At least $3,000
Min. Time in Business
12 months
Min. Credit Score
640
Key Features
- Monthly fee: 3-9% for 6 month loans, 6-18% for 12-month loans, 9-27% for 18-month loans
- Loan amounts ranging from $2,000 to $250,000
- No prepayment penalties and no origination fees
- Convenient application process
Pros & Cons
- Straightforward application process
- Can access funds through issued debit card
- No prepayment penalties
- Helpful customer support team
- Complex fee structure
- No prepayment incentive
Overview
American Express Business BlueprintTM offers business lines of credit, which can be used to cover everyday expenses of a medical practice like employee salaries or replacing broken equipment. American Express Business Line of Credit is best for medical practices with a fair monthly revenue, as their requirements are much lower than most other lenders on the market.
Main Features
American Express Business Line of Credit ranges between $2,000 to $250,000 and a repayment term of 6, 12, or 18 months. Rather than charging an interest rate, American Express charges fees based on the term length. Six-month term fees range from 3-9%, 12-month term fees range from 6-18%, and 18-month term fees range from 9-27%. Business Blueprint does not require collateral, but you do need to sign a personal guarantee in order to be approved.
To qualify, you’ll need a minimum credit score of 640, be in business for at least 12 months, and have at least $3,000 in average monthly revenues, making American Express Business Blueprint our top pick for medical practices with lower profits. However, all businesses are unique and are subject to approval and review.
If your medical practice isn’t producing high profits, American Express Business Line of Credit could be your best option. With their low monthly revenue requirements, they’re a great choice for businesses who need extra working capital to continue to operate or expand.
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Backd - Best for Cheapest Interest Rates
Min. Annual Revenue
$100,000
Min. Time in Business
12 months
Min. Credit Score
Not specified
Key Features
- Borrow up to $2 million
- Industry best factor rate for MCA - as low as 1.10
- APR for the Line of credit product starts at 35%
- Flexible repayment terms up to 16 months
- Get funding in as little as 24 hours
- Check your rate with a soft credit pull
Pros & Cons
- Easy online application
- Instant lending decision
- Funding in 24-48 hours of loan approval
- Large loan amounts
- No collateral required
- Flexible payment options
- Rates and fees not disclosed on website
- Not available to all industries
- Startups will not qualify
Overview
Backd allows you to secure up to $2 million in funding tailored uniquely to your medical practice needs. Whether you want to open up a second location, renovate your existing office space, or purchase all new medical equipment, Backd can help you get the loan you need. Founded in 2018, Backd has funded more than $1 billion to over 10,000 small businesses.
Main Features
Backd offers two loan products to medical malpractice firms: Working capital loans and business lines of credit. Working capital loans range from $10,000 to $2 million with terms up to 16 months. Business lines of credit range from $10,000 to $750,000 with unlimited terms. Neither option requires collateral; and payments are flexible to meet your business needs. To qualify for a working capital loan or business line of credit, you need to be in business for at least one year and have $100,000 or more in annual revenue. You also need to be based in the U.S. and have a business bank account. Backd does not mention a minimum credit score; however, the better your score, the better the interest rate you’ll receive.
Backd has made getting a loan simple: You can apply online in just a few minutes, get a lending decision instantly, review the rates and fees, and decide whether or not to accept the loan. As long as you’ve been in business for one year, Backd is worth looking into.
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National Funding - Best For Equipment Loans
Min. Annual Revenue
$250,000
Min. Time in Business
6 months
Min. Credit Score
600+
Key Features
- Borrow up to $500,000
- Fast funding
- Early payment discounts
- Loan Repayment 2-5 years
- Factor rate From 1.10
Pros & Cons
- Good reviews and rankings: National Funding has earned a solid reputation on well-known sites like Better Business Bureau (BBB) and TrustPilot.
- No down payment necessary: You don’t need to put any money down to get approved for a National Funding equipment loan.
- Lack of transparency: Since National Funding’s website is basic, you'll have to go through the application process to learn more about loan options for your medical practice.
- No special interest loans: While National Funding states it offers business loans to minorities, there are no special products for them.
- High annual revenue: National Funding only lends to businesses who earn at least $250,000 per year so it can be difficult to qualify if you’re a fairly new medical facility.
- Expensive rates and fees: Compared to loans from other lenders, National Funding products come with higher rates and fees, which can make your loan more expensive.
Overview
National Funding offers equipment loans, which can come in handy if you need to buy or lease equipment for your medical practice. An equipment loan can help you cover the cost of exam tables, cleaning and sterilization tools, diagnostic tools, thermometers, and anything else you need to provide your patients with quality care.
Main Features
National Funding’s equipment loans go up to $150,000 with repayment terms between two and five year years. The pay rate starts at 1.10 and you’ll repay what you borrow every month. To take out an equipment loan, you’ll need a minimum credit score of 600, a business track record of at least two years, and $250,000 or more in annual revenue.
If you’re an established medical practice who would like to buy new equipment or upgrade your current equipment, National Funding is worth exploring. You can receive up to $150,000 to cover the cost of any equipment you need to run smoothly.
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Bluevine - Best for Medical Practice Line of Credit
Min. Annual Revenue
$10,000
Min. Time in Business
6 months
Min. Credit Score
625+
Key Features
- Funding up to $250,000
- Interest rates as low as 4.8%
- Loan Repayment 6-12 months terms
- Quick and simple application
Pros & Cons
- Streamlined application and approval process
- Rapid fund disbursement
- Convenient online dashboard
- Person-to-person customer support available
- Attractive interest rates
- Loans are not available in all states
- Services only provided for B2B companies
- High rates for lower credit applicants
Overview
When running your own medical or dental practice, it is important to have access to a business line of credit at all times. The good news is that Bluevine offers generous lines of credit with attractive interest rates. Funds can be made available within hours of approval, and Bluevine does not charge maintenance or prepayment fees.
Main Features
Bluevine lines of credit range between $5,000 and $250,000, and the term length can be either six or 12 months. The interest rates are reasonable, starting at just 4.8%. However, if you carry the loan to full term, the rates will add up, so we recommend making sure you can pay off each draw as quickly as possible.
When it comes to qualification requirements, your business must be in operation for at least six months and bring at least $120,000 in yearly revenue. In addition, your personal credit score must be no less than 625.
If you are looking for a line of credit to help you out with the daily expenses of your medical practice, BlueVine is a great alternative lender to consider.
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GoKapital - Best for Early Payment Discounts
Min. Annual Revenue
$240,000
Min. Time in Business
2 Years
Min. Credit Score
500+
Key Features
- Borrow up to $5 million
- Loan Terms 2 to 10 years
- Interest rates start at 25%
- Wide range of loan offers
- Simple application process
- Instant pre-approval
Pros & Cons
- Easy online application
- Excellent customer service
- Low credit accepted
- Early payment discounts
- High annual revenue requirements
- Rates may be high for those with poor credit
Overview
GoKapital offers many types of small business loans for medical practices, but one thing that sticks out is their early payment discount that’s available on their business term loan. If you need funding but know you can pay it off quickly, GoKapital is worth considering. Because of the early payment discount, you could save thousands on the overall cost of your loan.
Main Features
GoKapital business term loans range from $10,000 to $250,000 with terms of two to 10 years. Rates start at 25% and payments are made monthly. If you were hoping to borrow more money, GoKapital offers loans up to $5 million to qualified borrowers. These types don’t come with early payment discounts, but the rates tend to be lower overall.
To qualify for a business term loan, you need to have a minimum credit score of 500, two years of business history, and $240,000 or more in annual revenue. Because of the high income requirement, credit score isn’t as much of a factor. However, you will score a better interest rate if you have a strong credit history.
GoKapital has been around for a decade serving entrepreneurs just like yourself. If your medical practice is in need of funding, GoKapital offers many different types of loans that can assist you. When you apply, only a soft pull on your credit is done, meaning it is virtually risk-free to apply and see what types of funding they are able to offer.
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Biz2Credit - Best for Commercial Real Estate Loans for Physicians
Min. Annual Revenue
$250,000
Min. Time in Business
6 months
Min Credit Score
600+
Key Features
- Borrow up to $2 million
- Loan Repayment 12-36 months terms
- Variable APR depending on the applicant
- Multiple loan types available
- Funding in 72 hours
- Soft credit pull
Pros & Cons
- Simple online application process
- Quick turnaround time
- High borrowing amounts
- Friendly and helpful customer service
- Several supporting documents are required
- Strict qualification requirements
- Additional fees and charges may apply
Overview
Biz2Credit offers three different types of loans for medical practices: working capital loans, term loans, and commercial real estate loans. Commercial real estate loans range from $250,000 to $6 million and can be used to start your own medical practice or purchase an existing one. The application is quick and simple, and decision and funding times are short as long as you prepare any required documentation in advance.
Main Features
A commercial real estate loan from Biz2Credit can range between $250,000 and $6 million. Rates start at 10%, and you can qualify within 48 hours. For term loans, amounts range from $25,000 to $500,000 with rates starting at 7.99%. And finally, working capital loans range from $25,000 to $2 million and you can get approved within 24 hours. To qualify for a commercial real estate loan or term loan from Biz2Credit, you need to be in business for at least 18 months, have $250,000 or more in annual revenue, and have a credit score of 660 or above. Working capital loans have more lenient qualifications: you must be in business for at least six months and have a credit score of 575. Annual income requirements are the same at $250,000 per year or more.
Whether you want to renovate an existing property or acquire a new business, a commercial real estate loan from Biz2Credit is a great option to consider. It takes just a few minutes to apply, and you’ll receive a decision within 24 hours.
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Fundbox - Best for Business Term Loans for Physicians
Min. Annual Revenue
$100,000
Min. Time in Business
6 months
Min. Credit Score
600+
Key Features
- Borrow up to $150,000
- Loan repayment 6-12 months terms
- Interest rate 4.66% minimum
- No monthly fees or prepayment penalties
- Same-day or next-day funding
- Best for business lines of credit
Pros & Cons
- Simple online application process
- Quick approval and fund disbursement
- Low credit score is welcome
- No monthly minimums
- No hidden fees in addition to interest rate
- Can set up automatic debiting for payments
- Relatively small maximum loan amount
- High interest rates
Overview
Fundbox offers term loans and lines of credit for physicians up to $150,000. With a term loan, the lender provides you with a lump sum, which you repay over a 24 or 52 week period. Lines of credit, on the other hand, allow you to draw funds repeatedly without reapplying. Fundbox has a quick and easy application, making them a top choice for medical practice loans.
Main Features
Business term loans from Fundbox allow you to borrow up to $150,000 and are paid back over 24 or 52 weeks. For business lines of credit, you choose a 12 or 24 week repayment plan each time you draw on the funds. Loans and lines of credit from Fundbox can be used to purchase new equipment, refinance existing debt, pay for conferences and training events, market your medical practice, and more.
As an online lender, Fundbox offers a quick and easy application process and rather lenient application requirements. To qualify, you’ll need a minimum credit score of 600, be in business six months or more, and have an annual revenue of $100,000. Fundbox also offers lower rates to repeat customers.
If you are looking for a term business loan or line of credit for physicians with a quick application process and fast turnaround time, Fundbox is the place to go. With competitive rates and flexibility in payments, Fundbox makes borrowing money for your medical practice easy.
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How to Choose the Best Medical Practice Loan
- Loan features: Loan features include loan terms and conditions, maximum and minimum loan amounts, and repayment frequency.
- Application process: This includes what information and documents are required, how long the application process takes to complete, and whether the lender performs a hard or soft credit check.
- Interest rates and fees: This factor considers minimum and maximum interest rates offered, as well as any additional fees and charges.
- Qualification process: What are the qualification requirements for the loan? What is the minimum credit score, annual revenue, and time in operation?
- Customer support: This includes how accessible live customer support representatives are and whether the lender readily provides any additional tools and information.
- Online user reviews: What do previous customers say about the lender and its products on independent review sites like Trustpilot?
- Perks and bonuses: This factor includes any additional special offerings, such as advertising transparency, payment flexibility, and advanced technology.
Main Features of The Best Medical Practice Loans
| Company | Min. Credit Score | Min. Time in Business | Min. Revenue | Loan Amount | Interest Rate |
| Biz2Credit | 575 for working capital loans | 6 months | $250,000 | $25,000 - $6 million | Variable |
| Fundbox | 600 | 6 months | $100,000 | $1,000 - $150,000 | 8.33% for term loans 4.66% for lines of credit |
| GoKapital | 500 | 2 years | $240,000 | $10,000 - $250,000 | 25% and up |
| Bluevine | 625 | 12 months | $120,000 | $5,000 - $250,000 | Starting at 4.8% |
| Upstart | 550 | 12 months | N/A | $5,000 to $200,000 | Max 35.99% APR |
| American Express Business Line of Credit | 640 | 12 months | Average monthly revenue: at least $3,000 | $2,000 - $250,000 | Monthly fees |
Who Uses Medical Practice Loans?
A broad variety of medical professionals can benefit from receiving a medical practice loan, including:
- Primary care physicians: As the go-to medical professionals, primary care physicians provide care for families for many years. They might need a loan to create, design, and furnish their medical offices, hire staff members, and purchase the necessary medical equipment.
- Plastic surgeons: Plastic surgeons perform reconstructive procedures and help people feel better in their own skin. Running a plastic surgery practice is incredibly costly, and the right medical practice loan can help surgeons purchase necessary supplies and equipment, lease and furnish the office, cover insurance, or market their business.
- Massage therapists: Massage therapists also need to find and furnish dedicated space to accept clients. If the therapist visits patients at home, a medical practice loan could be used to purchase or lease a trustworthy vehicle.
- Psychologists: To provide the best service possible, psychologists need to create a calming and comfortable atmosphere in a dedicated space. They can use a medical practice loan to renovate a space or cover ongoing expenses like marketing and licensing fees.
Other professionals who may consider applying for a medical practice loan include optometrists, ophthalmologists, dermatologists, dentists, pediatricians, podiatrists, physiotherapists, chiropractors, and more.
How Can You Use a Medical Practice Loan?
Medical practice loans are issued specifically to help you grow your medical business. Some common ways that you may leverage the loan funds include:
- Starting a new practice
- Buying new diagnostic equipment
- Advertising to acquire new customers
- Purchasing an additional practice
- Paying salaries and benefits to employees
- Purchasing an ambulatory vehicle
- Funding a community outreach program
- Purchasing updated administrative equipment
Are There Restrictions on Medical Practice Loans?
Most medical practice loans are paid out in lump sum amounts. Once the loan is approved and the funds are transferred into your medical practice’s bank account, the money can generally be used as you see fit. Make sure to keep records of how the loan money is spent, including any purchase and warranty receipts, for tax purposes.
How to Qualify for a Medical Practice Loan
If you are wondering how to get a loan to start a medical practice, keep in mind that even within the medical field, the specific qualification requirements will differ between lenders.
With online lenders, you typically will need a credit score of 500 or more, be in operation at least six months, and have an annual revenue of $50,000 or more.
How Do Medical Practice Loans Work?
Dedicated medical practice loans are typically funded by commercial lenders. When you apply for a loan as a medical professional, you will be asked to provide verification of the nature of your practice and your employment status.
While the loan application will include certain personal financial information, most of the questions will pertain to the practice itself. For example, you may be asked to submit your practice’s financial records, including any outstanding existing loans, accounts receivable and payable, cash flow statements, P & L, and more.
Once the lender has reviewed your application and approved the loan, funds will be disbursed into your practice’s bank account, typically within a few days. You can then start using the money to grow your medical practice.
Conclusion
Finding the best medical practice loan among hundreds of offerings isn’t easy. However, if you perform thorough research and due diligence, you can soon be on your way to financial success.
When applying for a loan, make sure to carefully examine things like loan limits, repayment periods, interest rates, and any hidden fees. In addition, make sure that you can actually qualify for the loan of your choice by going over your annual earning reports and credit history. Once you find which loan is best suited for your medical business, don’t hesitate to apply. Many times, alternative lenders are quite lenient with qualification criteria and they want to help you get funded and see your business succeed.
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Written by: Tetiana Sitiugina-Babiuk
Tetiana Sitiugina-Babiuk is an independent writer and SEO strategist helping a broad range of international clients to convey their stories for over five years.
More about me)
Reviewed by: Sarah Brooks
Sarah Brooks is a personal finance writer and editor with more than 10 years of experience. She specializes in personal and business loans, mortgages, auto loans, and credit cards.
More about me)
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