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Veterinary Business Loans: Best Options to Consider in 2024
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.
Written by:Paige Cerulli
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.
Top Picks for The Best Veterinary Business Loans
- Lendzi - Best for Businesses With High Revenue
- National Funding - Best For Equipment Loans
- SMB Compass - Best for Fast Funding Times
- Bluevine - Best for a Fast Approval
- Fora Financial - Best for Larger Funding Needs
- Funding Circle - Best for Fast Funding
- SmartBiz - Best for Established Businesses
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 2024 - Full Overview
Best Overall
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
- 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
Overview
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.
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
- 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.
Overview
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.
SMB Compass - 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
If you need a loan for your vet business fast, look no further than SMB Compass. The lender offers nine different types of loans, most of which are funded within 1-2 business days of loan approval. Loan types include business term loans, business lines of credit, SBA loans (these take longer to fund), equipment financing, invoice factoring, and more. If you aren’t sure which type of loan would be best for your vet business, contact a representative from SMB Compass who will guide you through the application and help you choose a loan product. To qualify, you’ll ideally have one year of business history, a 650 credit score or higher, and $20,000 per month in revenue.
Main Features
SMB Compass offers nine different types of small business loans to veterinary borrowers. 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.
Whether you need a loan quickly to cover an unexpected expense or you’re in need of updated equipment, SMB Compass can get you funded within 1-2 business days of loan approval. Qualifications are stricter than some other lenders, but if you have decent credit and high monthly revenues, SMB Compass is a lender worth looking into. Contact them today to get started!
Bluevine - Best for a Fast Approval
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
- Starting at 6.2%Interest rates
- Loan Repayment 6-12 months terms
- Quick and simple application
Pros & Cons
- 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
- Low limit: $250,000 maximum
- Minimum $10,000 per month income
Overview
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.
Fora Financial - Best for Larger Funding Needs
Factor Rate
1.15-1.40
Loan Amounts
$5K-$1.4 million
Min. Monthly Revenue
$12,000
Key Features
- Min. time in business: 6 months
- Min. credit score: 550+
- Borrow up to $1.4 million
- Factor rate from 1.15 to 1.40
- Ideal for plenty of industries
- Approval not solely credit based
- Early payoff discounts
Pros & Cons
- 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
- Cash advance requires credit card processing
- No specified interest rates on the website
- Short 15-month loan term
Overview
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.
Funding Circle - Best for Fast Funding
Interest Rate
3.9% to 12.1%
Loan Amounts
$5K to $500K
Min. Annual Revenue
$400,000
Key Features
- Few restrictions to your loan purpose
- Quick and straightforward application
- Min. Credit Score 650
- Min. Time in business 2 years
Pros & Cons
- 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
- Collateral may be required
- Features related to veterinary business loans
- Draw fees: For line of credit draws
Overview
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.
Main Features
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.
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.
SmartBiz - Best for Established Businesses
Interest Rate
7.5% - 10.29%
Loan Amounts
$30K - $350K
Min. Annual Revenue
$50,000
Key Features
- SBA 7(a) loans up to $350,000
- SBA commercial real estate loans up to $5 million.
- Min. Credit Score: 660
- Min. time in business: 2 years
- Loan Repayment 10 - 25 years
- SBA 7(a) loan rates: 10.75%-11.75%
- SBA Commercial real estate loan rates: 5.50-6.75%
- Receive multiple loan offers
Pros & Cons
- Variety of creative funding solutions
- Long terms: Up to 25 years
- Funding up to $5 million: With SBA loan
- 5-minute prequalification application
- SBA loans take 7+ days to fund
- Must be in business for 2+ years
- Strict eligibility requirements
Overview
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.
Main Features
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.
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.
Main Features of The Best Veterinary Business Loans
Lendzi4
National Funding4.1
Bluevine4
Fora Financial4
Funding Circle4
SmartBiz3.5
- Min. Credit Score - 500
- Min. Time in Business - 6 months
- Min. Annual Revenue - $180,000
- Loan Amount - Up to $400,000
- Interest Rate - Factor rates starting at 1.15
How To Choose the Best Veterinary Business Loan
- 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?
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.
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About the Author
Paige Cerulli
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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