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Medical Practice Loans: Best Options for Doctors in 2024
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.
Top Picks for Best Medical Practice Loan
- SMB Compass - Best for Fast Funding Times
- Lendzi - Best for Businesses with High Revenue
- Backd - Best for Cheapest Interest Rates
- Credibly - Best for Medical Practice SBA Loans
- National Funding - Best For Equipment Loans
- Bluevine - Best for Business Line of Credit
- Biz2Credit - Best for Commercial Real Estate Loans for Physicians
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 2024 - Full Overview
Our financial experts ranked some of the best loans for physician practices available on the market today.
Best Overall
Biz2Credit - Best for Commercial Real Estate Loans for Physicians
Interest rates
Starting at 7.99%
Loan Amounts
$25K to $500K
Min. Annual Revenue
$250,000
Key Features
- Working capital up to $2 million
- Term loans up to $500,000
- Term loan interest rate starts at 7.99%
- Loan Repayment 12-36 months terms
- Variable APR depending on the applicant
- 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.
Bluevine - Best for Medical Practice Line of Credit
Interest rates
Starting at 6.2%
Loan Amounts
Up to $250K
Min. Annual Revenue
$480,000
Key Features
- Funding up to $250,000
- Min. credit score: 625
- Min. time in business: 6 months
- Interest rates starting at 6.2%
- 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.
National Funding - Best For Equipment Loans
Factor Rate
Starting at 1.10
Loan Amounts
Up to $500K
Min. Annual Revenue
$250,000
Key Features
- Min. Time in Business: 6 months
- Min. Credit Score 600
- Borrow up to $500,000 in working capital
- Equipment financing up to $150,000
- Factor rate From 1.10
- Fast funding
- Early payment discounts
- Equipment financing repayment 2-5 years
- Working capital repayment 4 months - 2 years
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.
Credibly - Best for Medical Practice SBA Loans
Interest Rate
8-25%
Loan Amounts
Up $250K
Min. Annual Revenue
$180,000
Key Features
- Min. Credit Score: 550+
- Min. Time in Business: 6 months
- Borrow up to Up to $250,000 in term loans
- Borrow up to $400,000 in working capital
- Term loan rates range between 8-25%
- Working capital factor rate starts at 1.09
- Simple application process
- As soon as same day funding
- Open to high-risk industries
Pros & Cons
- Attentive customer service
- Fast online application process
- Favorable terms
- Open to high-risk industries
- Support documentation required
- Origination fees are charged
- Longer approval times
Overview
While Credibly offers a wide array of small business loans, we recommend their SBA loans as a solid choice for medical practice loans. SBA, or Small Business Administration, loans are backed by the government, which means more favorable terms for medical practice applicants. SBA loans come with lower interest rates and better terms than traditional small business loans, making them the more affordable option for medical practice lending.
Main Features
Credibly doesn’t disclose the limits for its SBA loans, but we do know that they come with longer terms, ranging from two to 25 years with a monthly repayment schedule. Because these loans are backed by the government, you can expect fair interest rates starting from 6.99%. SBA loans require extensive documentation to apply and come with stricter qualification criteria. As such, you would need to have a minimum credit score of 550, be in business for 6 months, and have $180,000 in annual revenue.
Credibly SBA loans are a great option for longer-term medical practice financing, but be ready for stricter qualification criteria and more supporting documentation requirements.
Backd - Best for Cheapest Interest Rates
Factor Rate
Starting at 1.10
Loan Amounts
Up to $2 million
Min. Annual Revenue
$200,000
Key Features
- Borrow up to $2 million
- Min. Credit Score: 640
- Min. Time in Business: 2 years
- 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 two years, have $300,000 or more in annual revenue, and 640+ FICO score. You also need to be based in the U.S. and have a business bank account. The better your credit 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.
Lendzi - Best for Businesses with High Revenue
Factor Rate
Starting at 1.10
Loan Amounts
Up to $4 million
Min. Annual Revenue
$180,000
Key Features
- Borrow up to $4 million in working capital
- Min. credit score: at least 500
- Min. time in business: 6 months
- Equipment financing up to $2 million
- Business line of credit up to $250,000
- See your options without hurting your credit
- Flexible terms: 3 to 15 months
- Excellent customer reviews on independent review sites
- Get funding in as little as 24 hours
Pros & Cons
- Easy online application
- Bad credit accepted
- Excellent customer satisfaction ratings
- Multiple loan products available
- Funding in as little as 24 hours
- High annual income requirement
- Must be in business at least six months
Overview
Whether you need to purchase new medical equipment, hire more medical staff, or pay for a renovation, Lendzi can help you get the funds you need. Lendzi was founded in 2020 and is our top choice for businesses with high revenue. They are a direct lender and a lending marketplace, allowing them to compare many loan products for you and help you select the best one for your business.
Main Features
Lendzi offers seven different types of loan products, including short- and long-term business loans, merchant cash advances, SBA loans, equipment financing, business lines of credit, and working capital loans. If your medical practice has high revenue, a working capital loan up to $400,000 or an equipment financing loan up to $2 million is your best option. Working capital loans require a minimum credit score of just 500, and equipment financing loans require a score of 550. In addition, Lendzi prefers borrowers who have a business history of at least six months and have $180,000 or more in annual revenue. Filling out an application takes just a few minutes and will not impact your credit score. From there, a Lendzi representative will contact you to discuss your business and review your lending options.
Lendzi is an excellent lender to work with due to their competitive rates, excellent customer service, and multiple loan products. If you’re in need of funding for your medical practice, we highly recommend reaching out to Lendzi.
SMB Capital - Best for Fast Funding Times
Interest Rates
Starting at 7.99%
Loan Amounts
$10K - $10 million
Min. Monthly Revenue
$20,000
Key Features
- Loans up to $10 million
- Min. credit score: can go as low as 550 for certain loans
- Min. time in business: 1+ years in business, no startups
- Funding times: 5 to 7 days for term loans and 24 - 48 hours for line of credit
- Flexible terms: 2 – 10 years for term loans
- Interest Rates: starting at 8.99% for term loans
- Applying does not impact credit score
- Nine loan products to choose from
Pros & Cons
- Low, competitive rates
- Large loan amounts
- Loan terms up to 25 years
- Excellent customer service
- Poor credit not accepted
- Not available in all states
- Must be in business at least one year
- High revenue requirements
Overview
SMB Compass has nine different loan products, most with funding times of 1-2 business days from loan approval. Products include business lines of credit, term loans, SBA loans, equipment financing, invoice factoring, and more, all of which can be used for your medical practice. If you aren’t sure which product would be best, a representative with SMB Compass can help you decide and walk you through the process. To qualify, you’ll need a minimum credit score of 650 for most products, $20,000 in monthly revenue, and a business history of at least one year.
Main Features
SMB Compass offers nine different types of small business loans to borrowers that can be used for medical practices. Their mission is to make loans more accessible to small business borrowers by providing cost-effective and flexible lending solutions. SMB Compass business loans range from $10,000 to $10 million with terms up to 25 years. Rates start at 7.99% for qualified borrowers. The lender has currently provided more than 1,200 U.S. businesses with more than $250 million in financing. To apply, simply fill out their easy online application. It takes just a few minutes and will not impact your credit score. If approved, funding can be dispersed within 24 hours.
SMB Compass is a fantastic lender for medical practice businesses looking for additional capital. They offer a variety of loans with fast funding times, competitive rates, flexible terms, and excellent customer service. If you meet the stricter-than-average qualifications, they are a lender worth contacting. To get started, simply fill out their online application and reach out to a representative, if needed.
Main Features of The Best Medical Practice Loans
SMB Compass4.5
Lendzi4.5
Backd4.5
Credibly4
National Funding4.1
Bluevine4
Biz2Credit4
- Min. Credit Score - 650
- Min. Time in Business - 12 months
- Min. Annual Revenue - $240,000
- Loan Amount - $10,000 to $10 million
- Interest Rate - start at 7.99% for qualified borrowers
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.
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.
*The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
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 meReviewed 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