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Best Veterinary Business Loans to Consider in 2022

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.

Veterinary business loans
Paige Cerulli
Business Content Writer
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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 veterinary business loan for your business, this article outlines some top options that include different funding types.

Our Top Picks for Veterinary Business Loans

bluevine
  • Quick and simple application
  • Funding up to $250K
  • Interest rates as low as 4.8%
Credit Score
Min. Credit Score 625+
Loan Amount
Loan Amount $5K-$250K
loan repayment
Loan Repayment 6-12 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
fora financial logo reviewed on Finimpact.com
  • 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 Veterinary Business Loan

When you’re considering the different types of veterinary practice financing available, it’s important to consider the following factors. These elements can help you to evaluate loans and better understand their pros and cons. Our experts used these factors to rank lenders.

  • 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?

Best for Veterinary Business Loans 2022 - Full Overview

If you’re looking for a veterinary business loan, you’ll want to consider these top-ranked options for 2022.

1. Bluevine - Best for a Fast Approval

banner BlueVine

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.

Pros
Flexible funds: Draw only what you need
Minimal fees: No prepayment or monthly fees
Simple application: Takes just minutes
Fast approval: In as little as five minutes
Line replenishes as you make payments
Cons
Low limit: $250,000 maximum
Minimum $10,000 per month income

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.

The Bottom Line

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.

2. Fundbox - Best for Repayment Term Options - Best for Repayment Term Options

banner_ Fundbox

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.

Pros
Multiple options: Term loan or line of credit
Easy application: Takes minutes
Simple eligibility requirements
No origination fee or prepayment penalty
Cons
Short repayment terms
No specified interest rates on the website

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 Bottom Line

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.

3. Fora Financial - Best for Larger Funding Needs

banner_Fora Financial

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.

Pros
Multiple funding options
Flexible repayment terms
Easy one-page application: Takes minutes
Approval in 24 hours
Fast funding: Advances in 72 hours
Large maximum: Up to $750,000
Cons
Cash advance requires credit card processing
No specified interest rates on the website
Short 15-month loan term

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.

The Bottom Line

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.

4. Torro - Best for Both New and Established Businesses

banner Torro

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.

Pros
Multiple funding options
Fixed term and open ended funding available
Easy online application
No prepayment penalty for fixed term loans
Cons
Limited information on website
No specified interest rates
No information about applicant requirements

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.

The Bottom Line

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.

5. Funding Circle - Best for Fast Funding

banner Funding Circle

Funding Circle offers business term loans, SBA small business loans, and business lines of credit that veterinary business owners can use for many funding needs. Owners can use the funding for building renovations and expansions, covering staff payroll, investing in new or upgraded equipment, and paying for insurance costs. The business term loans are available from $25,000 to $500,000, while SBA loans are available for amounts from $50,000 to more than $500,000. Lines of credit are available for amounts from $5,000 to $250,000, and you’ll only pay interest on the funds that you draw.

Pros
3 types of funding available
Wide range of funding up to $500,000
Variety of term lengths up to 10 years
No prepayment fees
Funds in 3 days: with business term loans
Cons
Collateral may be required
Features related to veterinary business loans
Draw fees: For line of credit draws

If you’re interested in the business term loans or a line of credit, Funding Circle offers a three-step application process for both. There’s no cost or obligation, and you can apply in just minutes. The SBA loan application takes about six minutes to complete, and then you’ll work with a loan specialist throughout the rest of the application process. SBA applicants should have three years of business tax returns, a current balance sheet and profit and loss statement, and a business debt schedule. SBA loans are available at interest rates starting at 6%, while the business line of credit features a 1.6% average draw fee and 5% average fee for past due amounts.

The Bottom Line

With three financing options and multiple terms and maximum amounts, Funding Circle offers versatile choices for veterinary business owners. SBA loans offer low-interest options with longer terms and forgiving applicant eligibility requirements. The business term loans have an upper limit of $500,000, making them suitable for both larger and smaller funding needs, while the business line of credit is an ideal solution for business owners with ongoing funding needs.

6. SmartBiz - Best for Established Businesses

Banner SmartBiz

SmartBiz offers three solutions for veterinary business owners: bank term loans, SBA loans, and custom financing. Bank term loan and custom financing amounts range from $30,000 to $500,000, while SBA loans range from $30,000 to $5 million. Custom financing options feature repayment terms ranging from 24 to 60 months, and they include options like a business line of credit, invoice financing, and business credit cards. Veterinary business owners can use these options to hire new staff, renovate the building, upgrade office or surgical equipment, and more.

Pros
Variety of creative funding solutions
Long terms: Up to 25 years
Funding up to $5 million: With SBA loan
5-minute prequalification application
Cons
SBA loans take 7+ days to fund
Must be in business for 2+ years
Strict eligibility requirements

If you’re interested in any of these funding options, SmartBiz offers a five-minute online pre-qualification application that won’t impact your credit score. Eligible business loan applicants need to have been in business for at least two years, have cash flow to support their loan payments, and should have a personal credit score of 660 and higher. SBA loan applicants need to have been in business for at least two years, and need a credit score of 650 or higher for loans up to $350,000. Commercial real estate SBA loans require a credit score of at least 675.

The Bottom Line

SmartBiz offers bank term loans and SBA loans that are suitable for business owners seeking both smaller and larger funding amounts. SmartBiz also offers several custom financing options that are ideal for many veterinary businesses, including business credit cards and invoice financing. With these custom options, businesses not only solve financing options, but address other challenges, too, like collecting on outstanding invoices or building up a low credit score.

Best Veterinary Business Loans - Features Comparisons

Company Min. Credit Score Min. Time in Business Min. Annual Revenue Loan Amount Interest Rate
BlueVine 600+ 6 months $120,000 Up to $250,000 4.8% and up
Fundbox 600+ for line of credit 6 months $100,000 for line of credit Not disclosed Not disclosed
Fora Financia Not disclosed 6 months $5,000 minimum in credit card sales for a merchant cash advance, $12,000 gross sales for a small business loan $5,000 to $750,000 Not disclosed
Torro Not disclosed Not disclosed Not disclosed Up to $575,000 for fixed term funding, up to $125,000 for open ended funding Not disclosed
Funding Circle 650 for a SBA loan 2 years for a SBA loan
$40,000 for a SBA loan $25,000 to $500,000 for a business term loan or SBA loan, $5,000 to $250,000 for a business line of credit 6% for a SBA loan
Smart Biz Not disclosed 2 years for SBA and term loans Not disclosed $30,000 to $500,000 for bank term loans, $30,000 to $5 million for SBA loans, $30,000 to $500,000 for custom financing 6.99% for bank term loans, 6.25% to 7.25% for SBA loans, 6.99% for custom financing

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.

Conclusion

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.

About the Author

Paige Cerulli

Paige Cerulli

Business Content Writer

Paige Cerulli is a content writer and copywriter who specializes in business, finance, pet, and health topics. An entrepreneur herself, Paige enjoys writing about topics that help business owners to make well-informed strategic decisions.

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