Finimpact

Best Medical Practice Loans and Financing

There are various reasons why a medical practice owner might need a business loan: leasing the office space, purchasing expensive medical equipment, launching a marketing campaign, or paying employee salaries, to name a few.

Best Medical Practice Loans and Financing
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One of the greatest 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. Even if you are already running a successful practice, you may want to buy new medical equipment or expand to a new location. Whatever the case, a medical practice loan from a trusted lending source can prove incredibly useful.

Our Top Picks for Best Medical Practice Loan

biz2credit review
  • Multiple loan types available
  • Funding in 48h
  • Soft credit pull
credit score
Min. Credit Score 600+
loan amount
Loan Amount $25K - $6M
loan repayment
Loan Repayment 12-36 months
Fundbox review
  • No monthly fees or prepayment penalties
  • Same-day or next-day funding
  • Best for business lines of credit
Credit Score
Min. Credit Score 600+
Loan Amount
Loan Amount $5K - $150K
repayment
Loan Repayment 6-12 months
forafinancial
  • Ideal for plenty of industries
  • Approval not solely credit based
  • Early payoff discounts
Credit Score
Min. Credit Score 550+
Loan Amount
Loan Amount $5K-$750K
Loan Repayment
Loan Repayment 4-15 months

How to Choose the 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 the following factors:

  • 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? Is there a special loan product for medical practices?
  • Customer support. This includes how accessible are live customer support representatives 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.

Best Medical Practice Loans for 2022 - Full Overview

Below, our financial experts have ranked some of the best loans for physician practice available on the market.

1. Biz2Credit - Best for Working Capital Loans

Biz2Credit working capital loans are offered to support the daily operational expenses of medical practice. For example, funding an ongoing marketing campaign, buying medical or dental materials, and paying employee salaries. These loans can be issued as quickly as 24 hours, as long as you prepare any required documentation in advance.

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

A working capital loan from Biz2Credit can range between $25,000 and $2 million in value. The term length, repayment period, and interest rate can vary and will be specified during the loan application process.
This type of loan comes with somewhat strict qualification requirements: your medical practice must bring an annual revenue of at least $250,000 and have an operational history of at least 6 months. In addition, your personal credit score must be no less than 575.

Features

Loan Value

$25,000 - $2 million

Term Length

Variable

Repayment Period

Daily, weekly, or bi-monthly

Origination Fee

1% - 6%

APR Range

Variable

Minimum Credit Score

575

Minimum Annual Revenue

$250,000

Minimum Time in Business

6 months

The Bottom Line

If you need a working capital loan fast, Biz2Credit is a great resource to consider. Their loans are known for varying term length and flexible repayment terms and can be funded as soon as within 1 business day.

Try Biz2Credit

2. Fundbox - Best for Business Term Loans

With a term loan, a lender provides you with a lump sum payment, which you repay over the agreed period of time together with the interest rate. One great resource to consider for a medical practice term loan is Fundbox, with its fast and easy application and approval process.

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 are relatively typical: you can borrow up to $150,000 to be paid back over 24 or 52 weeks, on a weekly basis.
As an online lender, Fundbox offers a quick and easy application process and rather lenient application requirements. Don’t be surprised to see high interest rates of up to 18%, - but keep in mind that the rate does get better for repeat customers.

Features

Loan Value

$1,000 to $150,000

Term Length

24 or 52 weeks

Repayment Period

Weekly

Origination Fee

None

Interest Rate

8.33% for 24 week terms

18% for 52 week terms

Minimum Credit Score

600

Minimum Annual Revenue

$100,000

Minimum Time in Business

6 months

The Bottom Line

If you are looking for a term business loan for physicians with a quick application process and fast turnaround, Fundbox is the place to go! However, be prepared to receive relatively high interest rates the first time you apply.

Try Fundbox

3. Fora Financial - Best for Merchant Cash Advances

With a Fora Financial merchant cash advance, you can borrow money against future credit or debit card sales. This means that a percentage of each business sale will be deducted automatically and debited toward your loan balance.

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

A merchant cash advance offers much more flexibility than a standard small business term loan. While the borrowing amounts are comparable at up to $500,000, there are no strict repayment terms.
The qualification criteria is lenient: you need a minimum credit score of 500, a minimum monthly business revenue of $12,000, and a minimum time in business of 6 months. Keep in mind, however, that you might be charged rather high interest rates with several additional fees, such as origination and borrowing fees.

Features

Loan Value

$5,000 to $500,000

Term Length

N/A

Repayment Period

Monthly

Origination Fee

Up to 2.5% plus a borrowing fee of 10% - 30% of the loan

Interest Rate

Factor 1.1 to 1.3

Minimum Credit Score

500

Minimum Annual Revenue

$60,000

Minimum Time in Business

6 months

The Bottom Line

Even though Fora Financial merchant cash advances come with rather pricey interest rates and additional fees, it is a great option for medical professionals looking for a flexible loan with lenient qualification requirements.

4. BlueVine - Best for Business Lines of Credit

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.

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

The limit of BlueVine lines of credit can range between $5,000 and $250,000, and the term length can be either 6 or 12 months. The interest rates are reasonable at under 6.50% per month. However, if you carry the loan to full term, the rates will add up, - so make sure that you are able to pay off the loan earlier.
When it comes to qualification requirements, the criteria is quite standard: your business must be in operation for at least 6 months and bring at least $120,000 in yearly revenue. In addition, your personal credit score must be no less than 600.

Features

Loan Value

$5,000 to $250,000

Term Length

6 or 12 months

Repayment Period

Weekly or monthly

Origination Fee

1.60% - 2.50% per draw

Interest Rate

0.30% - 1.50% per week (Flex6)

1.50 - 6.50% per month (Flex12)

Minimum Credit Score

600

Minimum Annual Revenue

$120,000

Minimum Time in Business

6 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

5. Credibly - Best for SBA Loans

SBA, or Small Business Administration, loans from Credibly are backed by the government, which means more favorable terms for medical practice applicants.

Pros
Attentive customer service
Fast online application process
Favorable terms
Open to high-risk industries
Cons
A lot of support documentation required
Origination fees are charged

Credibly doesn’t disclose the limits for its SBA loans, but we do know that they come with longer terms, ranging from 2 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%.
However, this also means that you would need more documentation to apply, along with stricter qualification criteria. As such, you would need to have a minimum credit score of 620 and be in business for 2 years or more.

Features

Loan Value

Not disclosed

Term Length

2 to 25 years

Repayment Period

Monthly

Origination Fee

2.5%

Interest Rate

Starting from 6.99%

Minimum Credit Score

620

Minimum Annual Revenue

Not disclosed

Minimum Time in Business

2 years


The Bottom Line

Credibly SBA loans are a great option for longer-term financing, but be ready for stricter qualification criteria and more supporting documentation requirements.

Try Credibly

6. Kabbage - Best for Business Lines of Credit

Kabbage offers business lines of credit for medical practices, which can be used to cover everyday expenses like employee salaries. One thing to keep in mind is that Kabbage was acquired by American Express and only serves customers already associated with it.

Pros
No minimum credit score requirements
Fast application process
Quick turnaround
Can access funds through issued debit card
Money can be transferred to PayPal account
Helpful customer support team
Cons
Only available to American Express clients
Expensive interest rates
Complex fee structure
No prepayment incentive

Kabbage lines of credit come with a loan limit of $1,000 to $150,000 and a repayment term of 6, 12, or 18 months. Similarly to most lines of credit, this type of loan has quite high annual interest rates, ranging from 24% to 99%. However, you can reduce the borrowing cost by paying off the loan earlier.
One great thing about applying for a line of credit from Kabbage is that the lender doesn’t specify a minimum credit score requirement. However, it is worth noting that Kabbage does perform a hard credit pull when reviewing your application.

Features

Loan Value

$1,000 to $150,000

Term Length

6, 12, or 18 months

Repayment Period

Monthly

Origination Fee

None

Interest Rate

24% to 99% APR range

Minimum Credit Score

None

Minimum Annual Revenue

$50,000 annual revenue or $4,200 monthly revenue over the past three months

Minimum Time in Business

12 months

The Bottom Line

If you are already using American Express, you might want to consider applying for a business line of credit from Kabbage, even if you are still building your credit history.

Try Kabbage

7. Lendio - Best for Invoice Factoring

Lendio is not a lender itself - instead, it is a financing platform connecting applications with a network of over 75 lenders. Through Lendio, you can discover several competing offers for accounts receivable funding, also known as invoice factoring. With this loan option, the lender will pay you a part of a client’s outstanding invoice immediately. Once the client pays, you will receive the rest of the balance minus any fees.

Pros
Wide selection of products and lenders
Competitive invoice factoring offers
Easy application through online dashboard
Cons
Qualifications are not uniform across lenders
Fees are not uniform across offers