Veterinary Business Loans: Best Options to Consider in 2023
Starting, running, and growing a veterinary business can require significant funding, and business loans can be a solution. With many options to choose from, it’s important to choose the loan that’s best for you and your business.
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Veterinary businesses face unique challenges. The cost of veterinary equipment is incredibly high, but that equipment is a necessary investment. Veterinary facilities are specialized buildings, and expanding or buying one can be cost-prohibitive. Even funding the salary for an additional staff member can be expensive.
Veterinary business loans can help owners to invest in their businesses and get through times when cash flow is limited. If you’re considering taking out a small business loan for your veterinary practice, this article outlines some top options that include different funding types.
When you’re considering the different types of veterinary practice financing available, it’s important to consider different factors. In this review, our experts highlight the rates, fees and terms of each lender and explain what makes them a good option. We also share potential downsides of each lender, and provide a rating methodology you can use to select the best option for your needs.
Best Veterinary Business Loans in 2023 - Full Overview
Fair credit accepted: Even if you have fair credit, National Funding may approve you for an equipment loan as it accepts borrowers with credit scores of 600 or higher.
High reviews and rankings: National Funding has a great reputation on reputable sites like Better Business Bureau (BBB) and TrustPilot.
Prequalification available: You may prequalify for a National Funding equipment loan loan and check your offers without hurting your credit score.
High annual revenue requirement: National Funding only lends to veterinary businesses who earn at least $250,000 per year.
Expensive rates and fees: Compared to loans from other lenders, National Funding products come with higher rates and fees, which can increase your overall cost of borrowing.
No mobile app: There is no app you can use to manage your loan on your smartphone or other other mobile device.
National Funding offers equipment loans to help you cover the cost of pricey equipment for your veterinary business. As long as you earn a minimum of $250,000 in annual revenue, you can secure up to $150,000 to pay for stethoscopes, ultrasound scanners, digital x-ray machines, IV pumps, anesthesia machines, and other essential equipment.
Main Features National Funding’s equipment loans go up to $150,000 with repayment terms between two and five year years. You can expect a pay rate that starts at 1.10 and will have to repay your loan every month. To qualify for an equipment loan, you’ll need a credit score of at least 600, at least two years of business history, and $250,000 or more in annual revenue.
If your veterinary business earns sufficient revenue and you want to buy new equipment or upgrade your current equipment, an equipment loan from National Funding can be a good fit. You can receive up to $150,000 and enjoy the peace of mind of excellent customer service from a reputable lender.
Excellent customer reviews on independent review sites
Pros & Cons
Simple online application: Takes a few minutes to apply
Bad credit accepted: Minimum score of 500 required
Multiple loans to choose from: Partners with 75 lenders
Excellent customer service: 2,000+ 5-star reviews on trusted websites
Fast funding times: Funds received in as little as 24 hours
Startups may not qualify: Must be in business six months
High annual revenue requirements: Lendzi recommends $180,000 or more
Lendzi was founded in 2020 and is a direct lender and a partner with more than 75 other lenders. Because of this, they’re able to offer a multitude of loan products to a wide variety of borrower portfolios. If your business has high revenue and you've been denied a loan elsewhere, Lendzi may be able to get you the funding you need for your veterinary business.
Main Features Lendzi offers seven different types of small business veterinary loans, including short- and long-term loans, merchant cash advances, equipment financing, business lines of credit, working capital loans, and SBA loans. If you have poor credit, your best options are equipment financing, a merchant cash advance, or a working capital loan. Working capital loans, for example, require a credit score of 500 and let you borrow up to $400,000. In order to qualify, Lendzi recommends a business history of six months and $180,000 in annual revenue. A representative will guide you throughout the process, answer all of your questions, and help you choose the best loan for your vet business.
If you need funding for your vet business and struggle with credit, we highly recommend reaching out to Lendzi. Odds are in your favor that they’ll have a funding solution for you, and if not, there’s a good chance one of their many lending partners will be able to help you out. Applying takes just a few minutes and does not impact your credit score, so you have nothing to lose by reaching out.
Bluevine offers a line of credit up to $250,000 that veterinary practices can use in many ways, including to pay for staff salaries, pay for insurance, upgrade veterinary equipment, invest in additional inventory, and more. The line of credit replenishes as you make payments, so you can draw down the funds that you need for repeated finances, like equipment purchases or expansion-related expenses. There are no opening or maintenance fees or prepayment penalties, and you can draw as much or as little as you need from your credit. This line of credit is ideal for veterinary facilities with changing or unknown financing needs.
Main Features To apply for a line of credit, you’ll need a 600+ FICO score, at least $10,000 in monthly income, and you’ll need to have been in business for at least six months. The application is simple and can be completed in minutes, and you may be approved in just five minutes. The line of credit features interest rates starting at 4.8%, and fixed monthly or weekly payments are scheduled over six or 12 months.
With an easy application and relatively flexible applicant requirements, Bluevine’s line of credit is a versatile option for many veterinary business owners. The ability to repeatedly draw down funds can help to support a growing business navigating unexpected expenses, and the $250,000 maximum is large enough to fund many business needs, including equipment purchases and construction costs.
Fundbox - Best for Multiple Repayment Term Options
Fundbox offers a line of credit and a term loan, both of which veterinary business owners can use to fund a variety of expenses, including investing in new surgical equipment, upgrading computer systems, investing in a marketing campaign, expanding or renovating the office, and more. The line of credit allows you to repeatedly draw funds down without having to reapply, and is ideal if you have changing or ongoing funding needs. The term loan is a one-time loan that provides a lump sum ideal for one-time expenses like equipment purchases or business acquisitions. Eligible applicants may qualify to take an additional term loan without having to reapply. Both the line of credit and term loan have no prepayment penalties or origination fees.
Main Features Both the term loan and line of credit applications require business owners to submit some basic information and to connect their accounting software or business checking account. Line of credit applicants will need a 600 or higher credit score, a business generating $100,000 or more in annual revenue, and should have been in business for at least six months. The line of credit offers 12- or 24-week repayment options, and applications may be approved in minutes. The term loan features automatic debit payments for convenience, and is structured so your payments stay the same each week. You can choose from 24- or 52- week loan repayment plans.
The option to choose a term loan or a line of credit means veterinary business owners can meet one-time and ongoing financing needs. Both funding options feature an easy application, and the line of credit eligibility requirements are very reasonable.
Fora Financial offers a small business loan and a merchant cash advance, both of which are suitable for veterinary practice owners. The small business loan is available in amounts up to $750,000, and loan terms are available up to 15 months. If you’re looking for a repayment model that’s structured more around your business’ profitability, the merchant cash advance is worth considering. The cash advance is also available in amounts up to $750,000, but repayment is more flexible.
Main Features Both the merchant cash advance and small business loan feature a one-page application and approval within 24 hours. Applicants must have been in business for at least six months. Loan applicants need to have at least $12,000 in gross sales, while merchant cash advance applicants must have at least $5,000 in credit card sales. The quote is no-obligation, and both funding options feature early payoff discounts. The business loan requires no collateral, and you may be eligible for a discount if you pay the loan off early. There are no set terms for the merchant cash advance, and remittance is based on your business’ credit and debit card sales. Both the small business loan and merchant cash advance give you a lump sum that you can use for one-time expenses like bills, purchases, and upgrades.
With loans and advances available up to $750,000, Fora Financial is a great choice for business owners who need larger lump sums. The option to take a merchant cash advance is particularly helpful for new veterinary business owners who need the option to repay their loan gradually as their income allows. The simple one-page application means applying is quick and easy.
Torro - Best for Both New and Established Businesses
Torro offers both start up capital and working capital, making it a practical option for new and established veterinary business owners. Veterinary business owners can use the funding for many expenses, including building renovations and expansions, inventory purchases, hiring new staff, staff training expenses, and equipment upgrades. The start up capital funding can help business owners who were turned down by other funders get the funding they need for cash flow and business investments. The business capital is available as fixed term and open ended funding, allowing business owners to choose the option that best supports their business.
Main Features Getting funded with Torro means little or no paperwork, no appraisal, and no limited asset verification. Torro offers a simple online application. Fixed term funding is available for amounts up to $575,000, and the term ranges from three to 24 months. There’s no prepayment penalty. Open ended funding is available up to $125,000, and you can draw your minimum amounts, start to pay down what you withdrew, and draw money again.
Torro offers several funding options for veterinary practice owners. The simple application process eliminates time-consuming tasks like appraisals and asset verification, making applying practical and easy for busy small business owners.
Loan Features: Look for loan terms and repayment optionality that are comfortable for you. Loan amounts can vary, so choose a loan that will give you the funding you need.
Application process - Consider how simple or invasive the application information requirements are. Does the application feature a hard-pull or soft-pull credit score impact? How long is the funding time after the application is approved? If you need funding quickly to pay for taxes or payroll, you’ll need to look for a short approval and funding time.
Interest rates and fees - Consider the different types of fees, like origination or draw fees. What are the loan’s minimum and maximum interest rates, and are they competitive?
Qualification process - How practical are the eligibility requirements? Are the minimum credit score, annual revenue, and business history requirements reasonable, particularly if you have a new business?
Customer support - If you need help with your application or funding, how can you contact the lender? Can you talk to a live customer service representative? Does the funder offer multi-channel support so you can get help when you need it, even while managing your practice?
Online user reviews - What are customers saying about the funders on independent review sites like Trustpilot?
Perks and Bonuses - Does the loan offer perks like payment flexibility and advertising transparency? If your business encounters income fluctuations, does the loan give you the flexibility you need to make your payments?
Main Features of The Best Veterinary Business Loans
Min. Credit Score
Min. Time in Business
Min. Annual Revenue
Up to $250,000
4.8% and up
600+ for line of credit
$100,000 for line of credit
$12,000 gross sales
$5,000 to $750,000
Up to $575,000
Up to $400,000
Factor rates starting at 1.15
What Are the Costs of Running a Veterinary Business
Starting and running a veterinarian clinic is a major investment. Startup costs for a small clinic can surpass $1,000,000, and keeping that business open requires ongoing cash flow.
Common purchase expenses include exam room tables, furniture, computers, lighting, surgical equipment, scales, x-ray and ultrasound machines, laboratory equipment, and more. Costs of these purchases can vary greatly, but individual pieces of equipment can cost thousands of dollars. For example, entry-level veterinary ultrasound systems start around $15,000 and can cost as much as $35,000.
While a business requires those types of expenses only occasionally, the business’ budget also needs to include frequent purchases of inventory, which includes prescription medication, surgical supplies, first aid supplies, cleaning supplies, and an inventory of retail products, like flea and tick and dental products.
While these expenses can add up, staff salaries tend to be one of the largest expenses that veterinary businesses have. Insurance, utilities, marketing, and the property’s rent or mortgage are also major budget items.
How to Use Veterinary Business Loans?
You can use loans for veterinarians in multiple ways. You might need to upgrade your facility, and could use the loans to finance renovation costs and the purchase of new or additional equipment. You can also use the loans to upgrade your existing veterinary equipment, furniture, office equipment, and other necessities. Veterinarian mortgage loans could help you to buy your first facility.
If you’re facing cash flow issues but need to grow your business, you might take out a veterinary practice loan to finance important investments like hiring more staff or investing in advertising and marketing. You could also use the loan to pay for your taxes, hire a business consultant, or to even cover payroll costs until you have more cash again.
If you’ve been considering acquiring another business, like a grooming or boarding business, a loan could allow you to purchase that business and merge it with your veterinary business. In many cases, taking out a loan can help you to strategically grow and invest in your business, so you can enjoy greater profits later on.
How to Qualify for Veterinary Financing?
Veterinary loans have varying eligibility requirements, so one of the best ways to qualify for financing is to make sure that you meet the lender’s specifications. If you have a low credit score, focus on bringing that credit up by making all of your payments on time and by using as little of your available credit as possible.
Before you apply for financing, take the time to write out a detailed business plan. This plan ensures that you have thought out how to use the money that you’re borrowing, and that you’re using it in a sound, logical way. If you’re taking out money to invest in a purchase like a renovation or business acquisition, having a business plan shows that you’ve identified how that investment will ultimately generate profits for your business.
You can also increase your chances of qualifying for vet loans by demonstrating that your business is profitable and stable. Focus on generating monthly income of at least $10,000, which is the minimum amount that many lenders require. Establish at least a six-month business history and ensure that your bookkeeping is accurate and well-organized, since most lenders will ask to see your financial records.
Veterinary business financing can help you to take the next step in growing your business, or those loans might be a lifeline to help you weather financially challenging times. You can choose from many different types of veterinary business financing, including term loans, SBA loans, and lines of credit. Each option has its advantages and disadvantages, and for financing to truly help you, it has to be the right option for your business. Before deciding which type of financing to pursue, explore all of the options, including eligibility requirements and repayment terms. With this knowledge, you’ll be better prepared to make a financing decision that’s right for your business.
Frequently Asked Questions(FAQ)
What is the best way to finance growth in a veterinary business?
Depending on your business, the best way to finance growth might be to expand your physical space, to bring on additional staff, or to revise your marketing message and increase your marketing efforts. The best choice will depend on your current clientele and the challenges that you’re facing that are preventing you from being able to grow your business. When you take the time to perform thorough market research and write a detailed business plan, any of these investments can lead to business growth.
Is owning a vet clinic profitable?
Owning a vet clinic can be very profitable, especially given the increase in pet ownership during the pandemic. It’s important to evaluate your business expenses and price your services appropriately so you’re making the profits you need to keep your business running. If you provide vet services in an area where there’s unmet demand for those services and work to build a positive reputation, you could be building a highly profitable business that will thrive.
Is a vet clinic a good investment?
A vet clinic can be a great investment, but with any investment, it’s important to be strategic and do your market research. Look for an area that’s underserved by other veterinary offices, and look for a niche that you could fill, like offering at-home euthanasias or offering a combination of a veterinary and boarding facility. No investment is a sure thing, but pets need veterinary care no matter what the state of the economy, so opening a vet clinic can be a wise decision.
How much is a vet business worth?
A vet business’ worth will depend on many factors, including the size of the business, its location, the number of years it’s been in business, its established clientele, and the value of the facility and the equipment. Existing debt and other liabilities will also affect the business’ worth. There are several valuation calculators that can help you to determine your business’ approximate value, or you can consult with a professional business appraiser.