Best Medical Practice Business Loans

Business Loans For Medical Practices - Startups, Rates, and More

Lenders For Medical Business Loans

Kapitus

• Best for exploring various types of medical practice financing
• Minimum credit score 600

Kapitus offers a wide variety of medical practice loans giving them the ability meet the needs of many businesses. While businesses will need some established time in business to qualify, Kapitus can offer an easy application process and fast turnaround. Rates and terms may not be fully disclosed online so be sure to receive an offer and review it carefully. Explore small business loans, equipment financing, business line of credit, and other financial products at Kapitus. 

Kickfurther 

• Best for fast medical practice inventory funding or working capital
• Minimum credit score 600

Medical practice businesses come in many different forms. In most cases, medical practices are practices that deliver healthcare. However, medical practices can also be distributors or speciality offices. Nevertheless, the need for inventory or working capital can arise. When it does, Kickfurther can be an ideal funding solution. By leveraging the unique Kickfurther platform, business owners can take an innovative and safe approach to obtaining affordable funding. Unlike most options, at Kickfurther you will get started by creating a business profile that displays your business, who you are, and what your needs are. From here, we can help you raise funding to meet those needs. Funds come from a community of qualified backers. 

Fora Financial 

• Best for startup medical practice loans  with bad credit
• Minimum credit score 500

With many lenders requiring a minimum of two years in business, it can sometimes be hard to get a startup medical practice loan. Fora Financial’s business loan only requires you to be in business for six months to receive funding of up to $1,400,000. Starting a medical practice can be a lucrative business venture fueled by your passion to help others. Working with a lender willing to buy into the mission can be the difference between living your dreams or keeping them as dreams. From flexible requirements to qualify to prepayment discounts available, Fora Financial is a well-respected source for financing that helps businesses get the funds they need to grow. 

Lender for medical practice loans for bad credit: Fora Financial 

• Minimum credit score 500
• Medical practice loans up to $1,500,000
• Repayment period up to 15 months
• Funding times as soon as 72 hours on approved applications

Pros:

• Fast funding available 
• Prepayment discounts available 
• No collateral required 
• Low minimum credit score requirement (ideal for bad credit retail business owners)

Cons:

• Loans not reported  to credit bureaus (therefore they cannot be used to build credit)
• Factor rates instead of interest rates which can make offers hard to compare 
• Longest term available is 15 months

Lender for fast medical practice business loans: Kickfurther

• Minimum credit score 600
• Medical practice funding up to $5 million
• Flexible repayment periods that allow you to pay as inventory sells 
• Same day funding available 

Pros:

• Flexible repayment structures 
• Fast funding
• Up to 30% cheaper than comparable options
• Non dilutive funding solution (keeps you in control)

Cons: 

• More restrictive than other options
• Only available for brands that sell physical products or non-perishable consumables 
• Must have established sales to qualify 

Lender for medical practice loans for startup business: Fora Financial

• Minimum credit score 500 
• Loans up to $1,500,000
• Repayment period up to 15 months
• Funding times as soon as 72 hours on approved applications

Pros:

• Fast funding available 
• Prepayment discounts available 
• No collateral required 
• Low minimum credit score requirement (ideal for bad credit retail business owners)
• Only requires six months in business 

Cons:

• Does not report loans to credit bureaus 
• Factor rates instead of interest rates which can make offers hard to compare 
• Longest term available is 15 months

Starting your own medical practice can be a rewarding journey. Not only can you provide patients with quality care but you can be a business owner. After finishing medical school though it can take years or decades to pay off student loan debt. The thought of coming up with cash to start a medical practice can seem impossible. You’ve made it this far to give up though. Keep reading as we explore medical practice business loans. 

What is a medical practice loan?

Medical practice loans are specifically designed for healthcare professionals, providing the necessary funds to support the growth of your medical, dental, vision care, veterinary, or other practice within the medical field. If you already have an established practice and or strong personal finances, a medical practice loan can be the funding option needed for success - even if you don’t, there may still be options. 

Understanding the variety of funding channels you might have access to and how exactly these loans can help to establish or propel your business can help in deciding whether or not a medical practice loan is right for you. 

How do medical practice loans work?

Medical practice business loans cater to the industry-specific financial requirements of various healthcare professionals. While it may be easier for established physicians who are already practicing, some lenders may offer these loans to healthcare professionals while they're still in residency and planning to open their first practice in the near future.

When it comes to medical practice loans, there are different routes to obtaining one. These can either be secured or unsecured loans. Secured loans are backed by collateral and unsecured loans are not. Furthermore they can be term loans, a line of credit, inventory loans, and so forth – moral of the story, there are different types of medical loans. Oftentimes business owners are required to sign a personal guarantee, assuming personal responsibility for the repayment of the medical loan.

How do I apply for a medical practice loan?

Understanding the intricacies of medical practice loans and what you can qualify for are both important to-do’s to check off before applying for a medical practice loan. As a business owner, you’ll want to understand the financial commitment before you make it. 

Before applying for a medical practice loan, consider taking the following steps:

1. Determine your needs: Why do you need the loan? How much do you need to borrow? What’s the ideal repayment period?
2. Determine if you can qualify for a loan: Lenders often your business and personal credit score, so check both. to check your SMB (small to medium size business) score, visit mySMBscore. Our platform can help you identify ways to improve your chance of qualifying for a business loan and connect you to lenders that can help. 
3. Determine which offer works best: It’s encouraged to compare your options. Take advantage of mySMBscore to check personalized offers at your own leisure, without pressure. Choose the lender that can offer the most competitive medical practice loan.

What are the eligibility requirements for a medical practice loan?

Eligibility requirements for a medical practice loan can vary, but can include the following. 

1. Time in business: Many lenders will require you to be in business for a minimum amount of time before being deemed eligible for a medical practice loan. You can expect to find that many lenders have requirements of approximately two years. 
2. Annual revenue: Lenders can have different qualifications in this area, but ultimately, they want to see that a business has a proven track record of generating healthy revenues. 
3. SMB (small-medium sized business) score: Otherwise known as a business credit score, lenders can (and probably will) look at the history of the business’s financial standing. Your business score will likely be an important aspect of qualifying for a medical practice loan, or any business financing for that matter. 
4. Personal credit score: Small business loans may have personal credit score requirements. As mentioned earlier, oftentimes they can require a personal guarantee meaning that if the business fails to repay the loan, the business owner will be responsible. 
5. Collateral: This only applies to secured loans. In this case, the lender may have requirements outlining what collateral is deemed acceptable. 

How much can I borrow through a medical practice loan?

The amount of funding you could potentially borrow through a medical practice loan can vary.

Generally speaking, borrowing limits could fall anywhere in the $1,000-$5,000,000 range, depending on what you qualify for. 

MySMBScore can connect you with lenders that may offer medical practice loans of up to $100,000 and help you identify ways to qualify (and get a more competitive offer). Let us help nurse your business finances back to health. 

 What is the interest rate for a medical practice loan?

Just as borrowing limits can vary for a medical practice loan, so can offers and interest rates. It’s typical to see interest rates fall in the 5%-30% range, but this can vary depending on the circumstances and type of loan. Lenders normally want to see exceptional credit and may even require collateral for interest rates on the lower end of the spectrum. 

How long does it take to get approved for a medical practice loan?

Traditional lenders such as big banks typically will have a much longer application and approval process, taking weeks or in some instances months to see funds. Online lenders on the other hand, can have your lending decision the very same day you apply with funds received in as little as the next day. Remember though funding times can vary so check with the lender of your choice. 

What is the repayment term for a medical practice loan?

We’re seeing a trend here - repayment terms can be another big question mark that can vary greatly depending on the type of medical practice loan you receive and your personal circumstances. With repayment periods ranging from a few months to 10 years or more, the answer yet again is it can vary. We do our best to keep it real here, and that’s the truth. To explore various repayment periods available, take advantage of our platform to check offers and see what repayment period works best for you. 

Who uses medical practice business loans?

Medical practice loans can be dispersed to a variety of medical health professionals. You may even be surprised to learn that even non-traditional and specialty practices can qualify. Some examples of professionals that may utilize a medical practice loan include: 

• Primary Care Physicians (PCP) including pediatricians
• Optometrists
• Podiatrists
• Plastic surgeons
• Veterinarians 
• Dermatologists 

… and even holistic practices such as reiki, acupuncture, and homeopathy practices can qualify. 

Are there restrictions on medical practice loans?

Medical practice loans are commonly term loans. With term loans, there are usually no spending restrictions aside from requiring that the funds must be used for business purposes. It’s best to check with the lender you work with to confirm spending restrictions.

Medical practice term loans are typically issued in one lump sum and directly deposited into the dedicated bank account for the intended practice. That said, it's important to note that using those delegated funds to pay any personal expenses or debts may raise concerns with the IRS. Strict federal guidelines are in place to dictate how exactly your business funds should be utilized, which serves to ensure appropriate uses of those funds. While lenders may not have any specific restrictions on how that money can be spent, government regulations do stand to prevent any improper spending. This is why keeping detailed records of how your business’s money is spent is always a good practice. This includes keeping receipts and warranties for tax for reporting purposes come tax time. By using your borrowed funds in a way that fosters the growth of your business, you can make the most of your medical practice loan while still complying with federal financial regulations. 

How can you use a medical practice loan?

Here are some common examples of how  funds from a medical practice loan can be utilized: 

• Supplies: This can be gauze, bandages, tongue depressors, paper … and the list goes on. Each practice will have its own necessities. 
• Equipment: X-ray or other scanning machines, surgical devices,  and computers are common equipment essentials in medical practices. 
• Advertising: Much like any other business, marketing is important for the growth of your practice. 
• Expansion: This could look like a second building,  a new larger one, or additional staff.

These are some common uses for medical practice loans, but the possibilities are vast. Again, in most cases, as long as it benefits your business in some way, it is perfectly fine to spend your borrowed funds however you see fit. 

Who gives medical practice loans?

As with any business loan, a medical practice loan may be available through many different lending sources. Sources can include traditional banks, credit unions,  and other mainstream financial institutions. Beyond that it can include private lenders, or increasingly popular - online lenders. Lenders may offer various types of medical practice loans, which can vary. As you shop lenders you’ll want to compare the products they offer as well as the competitiveness of their offer. With so many options, you should be able to find a lender that can meet your needs. 

Are there any fees associated with a medical practice loan?

Much like with any standard loan, a medical practice loan can come with some not-so-obvious fees. These can include origination fees, application fees, closing costs, prepayment penalties, and late charges for missed payments. It is important to read the fine print of any loan paperwork to gain a comprehensive understanding of any fees your medical practice loan could possibly entail. 

What is the process for securing a medical practice loan?

First and foremost, before you apply for a medical practice loan, take a peek at your SMB, or small to medium business, credit score. MySMBScore makes it easy to view your business credit through the eyes of a lender, so you are in an empowered position to make smart business decisions. 

From here you can either take action to improve your financial position before applying or deem a healthy applicant. If you choose to apply, gather documents you might need such as tax returns or bank statements and check offers through our platform. Once you’ve accepted an offer you can proceed with the funding and approval process. 

As a medical professional, you have a special appreciation for health. Remember that health can easily apply to finances too, especially as a business owner.