Phone:
(844) 462-4730
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Mon-Fri: 9AM - 6PM
Address
97 Newkirk Street, 3rd Floor
Jersey City, NJ 07306
Prescribe the Right Capital: Medical Practice Loans Built for Healthcare Pros
From Exam Room to Expansion—Finance Your Practice with Confidence
Applying WILL NOT impact your credit.
Prescribe the Right Capital: Medical Practice Loans Built for Healthcare Pros
From Exam Room to Expansion—Finance Your Practice with Confidence
Applying WILL NOT impact your credit to review your options*
Same Day Funding Available
Terms Up To 25 Yrs
One Application, Multiple Funding Options
No Hard Credit Check
Financing Growth in the Healthcare Sector: Medical Practice Loans Made Simple
Running a private medical practice requires more than just providing patient care—it demands smart financial management. From everyday operational expenses to unexpected equipment upgrades, medical practice loans offer the capital healthcare providers need to keep their offices running efficiently. Physicians and healthcare entrepreneurs use medical business loans to hire staff, invest in advanced diagnostic tools, expand their facilities, or cover temporary cash flow gaps. Whether you’re opening a new clinic or scaling an existing one, access to the right financing can empower your growth and elevate your level of care.
Compare medical business loans
SBA loans for medical professionals
Pros:
Lower interest rates compared to traditional small business loan
Longer repayment terms help manage monthly cash flow
Larger loan amounts available for major expansions or real estate purchases
Funds can be used for diverse needs like equipment, working capital, or practice acquisition
Ideal for physicians launching or expanding private practices with solid business plans
Cons:
Lengthy and detailed application process
Requires strong credit and detailed financial documentation
Slower funding time compared to private or alternative lenders
Often requires a personal guarantee and may include collateral requirements
Prepayment penalties may apply, limiting repayment flexibility for fast-growing practices
Medical equipment financing
Pros:
Preserves working capital by spreading out equipment costs over time
Quick approval and funding timelines compared to traditional loans
Equipment itself often serves as collateral, reducing personal asset risk
Offers tax benefits through Section 179 deductions for leased or financed equipment
Flexible structures available including lease-to-own, rentals, or low-down-payment plans
Cons:
Higher interest rates than traditional bank loans in some cases
Limited to purchasing or leasing equipment—can’t be used for other business needs
May require a personal guarantee, especially for newer practices
Equipment can depreciate faster than the loan is repaid
Leasing options may include end-of-term buyouts or balloon payments
Business Lines of Credit for Doctors
Pros:
Only pay interest on the funds you draw, not the total credit limit
Revolving access to capital makes it ideal for managing ongoing or unexpected expenses
Can be reused without reapplying once the credit line is established
Faster funding and less documentation than traditional term loans
Helps build and strengthen your medical practice’s credit profile over time
Cons:
Credit limits may be lower than lump-sum term loans
Variable interest rates can fluctuate and impact monthly payments
May include maintenance or draw fees even when funds aren’t used
Requires solid credit and consistent revenue for best terms
Can be harder to qualify for if your practice is new or has irregular cash flow
Revenue-based financing for healthcare providers
*Revenue based financing through a merchant cash advance.
Pros:
Approval is based on revenue performance, not personal credit score
Flexible repayment structure tied to a percentage of future revenue
No fixed monthly payment—payments adjust with your cash flow
Faster approval and funding compared to traditional loans
Doesn’t require giving up equity or control of your medical practice
Cons:
Higher overall cost of capital compared to SBA or bank loans
Daily or weekly repayments can strain cash flow during slow periods
Total repayment amount is fixed upfront and not reduced by early repayment
Not ideal for brand-new practices with little to no revenue history
May require access to your bank account or merchant processor for automatic repayments
Startup loans for physicians
Pros:
Provides critical capital to launch a new private practice from scratch
Can cover upfront costs like leasing office space, equipment, staffing, and marketing
Tailored loan programs available specifically for medical professionals
Some lenders offer deferred payments or interest-only periods during ramp-up
Helps build business credit and lender relationships early in your career
No revenue history required to qualify with certain lenders
Cons:
Harder to qualify without a solid business plan and financial projections
May require a personal guarantee or collateral if the practice has no revenue history
Tied to personal credit, which often requires personal guarantees
Interest rates may be higher due to perceived startup risk
Longer approval timelines compared to alternative financing options
Loan amounts may be capped based on projections, not growth potential
Medical Practice Loans: Pros & Cons
| Pros | Cons |
|---|---|
| Wide range of financing options for private practices and clinics | Some loans may require personal guarantees |
| Helps manage cash flow for operations, staffing, and patient billing | Higher interest rates on unsecured or alternative loan products |
| Access to equipment-specific financing for diagnostics and treatment | Debt service coverage ratio (DSCR) requirements for approval |
| SBA 7(a) and 504 loans available with competitive terms | Longer approval times for SBA and traditional bank loans |
| Possibility of building strong business credit for future expansion | Solid business plan and financial documentation often required |
How Do You Apply For a Medical Practice Loan?
Evaluate Your Financing Needs
Before applying, define how much capital your medical practice truly needs. Are you purchasing new diagnostic equipment, hiring additional staff, or covering startup costs? Outlining specific use cases will help you choose the right medical business loan—whether it’s equipment financing, revenue-based funding, or an SBA 7(a) loan for broader working capital.
Gather Required Documentation
Most lenders require key documents, such as business tax returns, personal and business credit scores, profit-and-loss statements, and proof of medical licensure. If you’re a new physician, a strong business plan and cash flow forecast can increase your approval chances.
Choose a Lender and Submit Your Application
Compare loan offers from traditional banks, SBA-approved lenders, and alternative financing platforms like AMP Advance. Look for the best combination of interest rate, repayment terms, and funding speed. Once you’ve selected the right option, submit your completed application and wait for underwriting to review.
When to Use Healthcare practice financing
- 🩻 Purchasing Diagnostic Equipment
- 🧱 Renovating or Expanding the Practice
- 🩺 Hiring or Training Medical Staff
- 💻 Implementing Electronic Health Record (EHR) Systems
- 💵 Bridging Cash Flow During Insurance Reimbursements
What our clients say about us
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YOU GOT QUESTIONS? WE HAVE ANSWERS!
What are the qualifications needed for a medical practice loan?
To qualify for an medical practice financing we require at minimum:
- 6 months in business
- $10,000 monthly gross revenue
- Business bank account
- US based business
- US citizen or legal permanent resident
What credit score is needed for a medical practice loan?
While requirements vary, a credit score of 680 or higher is typically preferred by lenders. However, some programs may accommodate lower scores, especially with strong business plans or collateral.
Can I use an SBA loan to purchase medical equipment?
Yes, SBA 7(a) and 504 loans can be used for purchasing medical equipment, among other practice-related expenses.
Are there financing options for new medical practices?
Absolutely. Startup loans are specifically designed to provide capital for new medical practices, covering costs like leasing space, purchasing equipment, and initial operational expenses.
Before choosing a lender, explore insights from industry insiders in the AMA’s guide on starting your private practice to understand financial needs and avoid common pitfalls.
How long does it take to get approved for a medical practice loan?
Approval times vary by lender and loan type. Traditional bank loans may take several weeks, while some specialized lenders offer faster approval processes.
Can medical billing services impact loan approval?
Efficient billing services can improve cash flow and financial stability, positively influencing loan approval chances by demonstrating effective revenue management.
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