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Medical Practice Loans: Best Options for Doctors in 2022

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.

Best Medical Practice Loans and Financing
Tetiana Sitiugina-Babiuk
Independent writer and content strategist

Reviewed by: Sarah Brooks, Personal Finance Writer and Editor

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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.

Medical Practice Loans: Best Options for Doctors in 2022

Top Picks for Best Medical Practice Loan

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 took a close look at factors like loan terms, rates, fees, customer support, and more.

 

Best Medical Practice Loans for 2022 - Full Overview

Our financial experts ranked some of the best loans for physician practices available on the market today.

Biz2Credit - Best for Commercial Real Estate Loans for Physicians

Biz2Credit

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.

Pros
Simple online application process
Quick turnaround time
High borrowing amounts
Friendly and helpful customer service
Cons
Several supporting documents are required
Strict qualification requirements
Additional fees and charges may apply

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.

Features

Loan Value$25,000 - $6 million
Term LengthVariable
Repayment PeriodDaily, weekly, or bi-monthly
Origination Fee1% - 6%
APR RangeVariable
Minimum Credit Score575 for working capital loan
Minimum Annual Revenue$250,000
Minimum Time in Business6 months for working capital loan

The Bottom Line

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.

Try Biz2Credit

Kabbage - Best for Fair Monthly Revenues

Kabbage

Kabbage, backed by American Express, offers business lines of credit for medical practices, which can be used to cover everyday expenses like employee salaries or replacing broken equipment. Kabbage is best for businesses with a fair monthly revenue, as their requirements are much lower than most other lenders on the market.

Pros
Straightforward application process
Can access funds through issued debit card
No prepayment penalties
Helpful customer support team
Cons
Complex fee structure
No prepayment incentive

Kabbage lines of credit come with a loan limit of $2,000 to $250,000 and a repayment term of 6, 12, or 18 months. Rather than charging an interest rate, Kabbage charges fees based on the term length. Six-month term fees range from 2-9%, 12-month term fees range from 7.5-18%, and 18-month term fees range from 15.75-27%. Kabbage 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 $3,000 in monthly revenues. This is much lower than the average revenue requirement of $100,000 per year, making Kabbage our top pick for medical practices with lower profits.

Features

Loan Value$2,000 to $250,000
Term Length6, 12, or 18 months
Repayment PeriodMonthly
Origination FeeNone
Interest Rate6-month loan: 2-9%; 12-month loan: 7.5-18%; 18-month loan: 15.75-27%
Minimum Credit Score640
Minimum Monthly Revenue$3,000
Minimum Time in Business12 months

The Bottom Line

If your medical practice isn’t producing high profits, a line of credit from Kabbage 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.

Try Kabbage

Fundbox - Best for Business Term Loans for Physicians

Fundbox

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.

Pros
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
Cons
Relatively small maximum loan amount
High interest rates

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.

Features

Loan Value$1,000 to $150,000
Term Length24 or 52 weeks for term loans; 12 or 24 weeks for lines of credit
Repayment PeriodWeekly
Origination FeeNone
Interest Rate8.33%+ for term loans; 4.66%+% for lines of credit
Minimum Credit Score600
Minimum Annual Revenue$100,000
Minimum Time in Business6 months

The Bottom Line

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.

Try Fundbox

Fora Financial - Best for Working Capital Loans for Physicians

Fora Financial

Fora Financial offers short-term loans and merchant cash advances, both up to $750,000. This is ideal for medical practices needing a large amount of capital, perhaps to open up a new location, invest in all new equipment, or perform a major renovation on existing property. A short-term loan from Fora Financial gives you a lump sum of money, whereas a merchant cash advance allows you to borrow against future credit or debit card sales.

Pros
Easy online application
Fast approval and fund disbursement
High loan amounts
Lenient qualification requirements
Early payoff discounts
Excellent customer service
Cons
Additional fees might be applied
Factor interest rates can get high

Physicians and medical practice owners can borrow $5,000 to $750,000 from Fora Financial. For short-term small business loans, you can be approved within 24 hours of applying and there are no restrictions on how you use the funds. Terms are up to 15 months, and Fora Financial does offer early repayment discounts.

A merchant cash advance is similar to Fora Financial’s short-term loans, except there are no set terms when it comes to repayment. Rather, you will pay a portion of your debit and credit card sales to repay the loan. If business is slow, your payment will be lower.

To qualify for either a term loan or merchant cash advance, you need a minimum credit score of 500 and  six months in business. Short-term loans require $12,000 per month in revenue and merchant cash advances require $5,000 per month in credit card sales.

Features

Loan Value$5,000 to $750,000
Term Length15 months for term loans
Repayment PeriodMonthly
Origination FeeUp to 2.5% plus a borrowing fee of 10% - 30% of the loan
Interest RateFactor 1.1 to 1.9
Minimum Credit Score500
Minimum Annual Revenue$144,000 for term loans; $60,000 for MCAs
Minimum Time in Business6 months

The Bottom Line

Fora Financial is a great option for medical professionals looking for a large amount of working capital. Their flexible loans or merchant cash advances come with lenient qualification requirements, and it takes just a few minutes to fill out an application.

Bluevine - Best for Medical Practice Line of Credit

BlueVine

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.

Pros
Streamlined application and approval process
Rapid fund disbursement
Convenient online dashboard
Person-to-person customer support available
Attractive interest rates
Cons
Loans are not available in all states
Services only provided for B2B companies
High rates for lower credit applicants

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.

Features

Loan Value$5,000 to $250,000
Term Length6 or 12 months
Repayment PeriodWeekly or monthly
Origination Fee1.60% - 2.50% per draw
Interest RateStarting at 4.8%
Minimum Credit Score625
Minimum Annual Revenue$120,000
Minimum Time in Business6 months

The Bottom Line

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.

Try BlueVine

Credibly - Best for Medical Practice SBA Loans

Credibly

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.

Pros
Attentive customer service
Fast online application process
Favorable terms
Open to high-risk industries
Cons
Support documentation required
Origination fees are charged
Longer approval times

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 620, be in business for two years, and have $100,000 in annual revenue.

Features

Loan ValueNot disclosed
Term Length2 to 25 years
Repayment PeriodMonthly
Origination Fee2.5%
Interest RateStarting from 6.99%
Minimum Credit Score620
Minimum Annual Revenue$100,000
Minimum Time in Business2 years

The Bottom Line

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.

Try Credibly

Lendio - Best for Multiple Loan Types

Lendio

Lendio is not a direct lender, but rather a financing platform connecting applicants with a network of over 75 lenders. Lendio offers 11 different types of small business loans, ranging from SBA loans to short-term loans to equipment financing loans. Lendio understands that your medical practice needs may be different from the one down the road, so they’ll work with you to find the right loan product to meet those needs.

Pros
Wide selection of products and lenders
Competitive offers
Easy application through online dashboard
Funding within 24 hours of loan approval
Cons
Qualifications are not uniform across lenders
Fees are not uniform across offers

Whether you need a short-term loan to get you through a slow season or are looking to acquire millions to invest in another business, Lendio can help. Because they offer so many different products through so many different lenders, though, it’s tough to lay out specific features and qualifications. In general, though, you’ll want to have a minimum credit score of 500, be in business for six months, and have at least $50,000 in annual revenue.

Features

Loan ValueUp to $500,000 on average
Term LengthVaries
Repayment PeriodMonthly
Origination FeeVaries
Interest RateVaries
Minimum Credit Score500
Minimum Annual Revenue$50,000
Minimum Time in Business6 months

The Bottom Line

If you’re not quite sure what type of loan you need, , Lendio is a great place to begin. Because the platform connects you to multiple lenders at a time, you will be able to choose the best offer for your specific medical practice needs.

Try Lendio

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

CompanyMin. Credit ScoreMin. Time in BusinessMin. RevenueLoan AmountInterest Rate
Biz2Credit575 for working capital loans6 months$250,000$25,000 - $6 millionVariable
Fundbox6006 months$100,000$1,000 - $150,0008.33% for term loans 4.66% for lines of credit
Fora Financial5006 months$144,000 for term loans $60,000 for MCAs$5,000 - $750,000Factor 1.1 to 1.9
Bluevine62512 months$120,000$5,000 - $250,000Starting at 4.8%
Credibly62024 months$100,000Not disclosed Starting from 6.99%
Kabbage64012 months$3,000 monthly$2,000 - $250,000Monthly fees
Lendio5006 months$50,000Up to $500,000Varies by lender

 

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.

Tetiana Sitiugina-Babiuk

Written by: Tetiana Sitiugina-Babiuk

Independent writer and content strategist

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
Sarah Brooks

Reviewed by: Sarah Brooks

Personal Finance Writer and Editor

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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