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Best Medical Practice Loans and How to Get One

By Randa Kriss, Lisa A. Anthony
Last updated on August 7, 2024
Medical practice loans can be used to start, manage, upgrade or expand a health care business.

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Medical practice loans are designed for physicians and other health care professionals to finance medical, dental, vision care and veterinary practices. You can get one of these small-business loans from both traditional and online lenders.
Below, compare the best medical business loans and learn more about how to get one.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are 6 of the best medical practice loans

LenderNerdWallet RatingMax loan amountMin. credit scoreNext steps

SBA 7(a) loan

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Best for SBA loans for medical practices

$5,000,000650

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Bank of America Health Care Practice Loan

Best for Bank medical practice loans

$5,000,000Undisclosed
Read Review

Funding Circle - Online term loan

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4.5/5

Best for Fast funding

$500,000660

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Fora Financial - Online term loan

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4.5/5

Best for Bad credit

$1,500,000570

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National Funding - Online Term Loan

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4.1/5

Best for Startups

$500,000600

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Triton Capital - Equipment financing

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4.1/5

Best for Equipment financing

$250,000575

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Here are 6 of the best medical practice loans

Best for SBA loans for medical practices

U.S. Small Business Administration

Max Amount

$5,000,000

Min. Credit Score

650

Best for Bank medical practice loans

Bank of America

Max Amount

$5,000,000

Min. Credit Score

Undisclosed

Best for Fast funding

Funding Circle

Max Amount

$500,000

Min. Credit Score

660

Best for Bad credit

Fora Financial

Max Amount

$1,500,000

Min. Credit Score

570

Best for Startups

National Funding

Max Amount

$500,000

Min. Credit Score

600

Best for Equipment financing

Triton Capital

Max Amount

$250,000

Min. Credit Score

575

I'M INTERESTED IN:

Our pick for

SBA loans for medical practices

SBA 7(a) loans can be used for a variety of purposes, including working capital, inventory or equipment purchases and general expansion. So far in fiscal year 2024, 9.4% of all 7(a) loans have been issued to businesses in the health care industry.

SBA 7(a) loan

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Max loan amount
$5,000,000
Min. credit score
650
Est. APR
11.00-14.50%

Pros

  • Large borrowing maximums.
  • Interest rates are capped.
  • Long repayment terms available.

Cons

  • Personal guarantee is required.
  • Collateral is typically required.
  • Longer processing times than online lenders.
Lowest interest rate

SBA 7(a) loan

Max loan amount
$5,000,000
Min. credit score
650
Est. APR
11.00-14.50%
Lowest interest rate

Our pick for

Bank medical practice loans

Bank of America’s dedicated health care practice loans can fund veterinary, dental and medical practices. Endorsed medical group members and veterans can access fee discounts.

Bank of America Health Care Practice Loan

Read Review
Max loan amount
$5,000,000
Min. credit score
Undisclosed

Pros

  • Can fund startup practices; interest-only and graduated payment structures available for startups.
  • Fee discounts for veterans and endorsed medical group members.
  • Dedicated project managers assigned to project-based loans.

Cons

  • Loan terms, interest rates and qualification requirements not available online.
  • Must call to learn more about financing options and how to apply.
  • Cannot make loan payments online.

Bank of America Health Care Practice Loan

Max loan amount
$5,000,000
Min. credit score
Undisclosed

Our pick for

Fast funding

Funding Circle provides medical practice loans for established businesses with good credit. Funds can be available in as little as two days.

Funding Circle - Online term loan

Read Review

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Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%

Pros

  • Cash can be available within two business days.
  • Competitive rates among online lenders.
  • Terms up to seven years.

Cons

  • Requires business lien and personal guarantee.
  • Must be in business for a minimum of two years.
  • Minimum credit score is higher than some other lenders.
May fund quickly

Funding Circle - Online term loan

NerdWallet rating 
4.5/5
Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
May fund quickly

Our pick for

Bad credit

Fora Financial offers medical business loans up to $1.5 million. You may be able to qualify with a minimum credit score of 570.

Fora Financial - Online term loan

Read Review

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Max loan amount
$1,500,000
Min. credit score
570

Pros

  • Cash can be available quickly.
  • Get a discount for prepaying.
  • No collateral required.
  • Low minimum credit score requirement.

Cons

  • Charges a factor rate that makes it more difficult to compare costs with other lenders.
  • Can’t build business credit.
  • Longest loan term is 18 months.

Fora Financial - Online term loan

NerdWallet rating 
4.5/5
Max loan amount
$1,500,000
Min. credit score
570

Our pick for

Startups

You may be able to qualify for medical practice financing from National Funding with just six months in business. Loans are available up to $500,000.

National Funding - Online Term Loan

Read Review

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Max loan amount
$500,000
Min. credit score
600

Pros

  • Funding in as little as 24 hours.
  • Prepayment discounts available.
  • Offers loans to startups and borrowers with bad credit.
  • No collateral or down payment required.

Cons

  • Charges a factor rate that makes it more difficult to compare costs with other lenders.
  • Short-term loans require daily or weekly repayment.
  • Requires higher annual revenue than other online lenders.
  • Misleading website marketing.

National Funding - Online Term Loan

NerdWallet rating 
4.1/5
Max loan amount
$500,000
Min. credit score
600

Our pick for

Equipment financing

With Triton Capital, you can finance equipment for your medical practice, including X-ray machines, CT scanners and ultrasound machines, among other supplies.

Triton Capital - Equipment financing

4.1
NerdWallet rating 

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Max loan amount
$250,000
Min. credit score
575
Est. APR
5.99-34.99%

Pros

  • Can fund within one to two business days.
  • No prepayment penalty.
  • Flexible repayment options: monthly, quarterly, annually or semiannually.

Cons

  • Typically requires a personal guarantee and UCC lien.
  • Requires high minimum annual revenue.

Triton Capital - Equipment financing

NerdWallet rating 
4.1/5
Max loan amount
$250,000
Min. credit score
575
Est. APR
5.99-34.99%

How Much Do You Need?

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What are medical practice loans?

Medical practice loans refer to loans that health care professionals (e.g. doctors, dentists, optometrists, veterinarians) use to finance their businesses. These loans can be used to:
  • Start a new practice.
  • Merge with or acquire another practice.
  • Expand, update or relocate a practice.
  • Purchase medical equipment, vehicles and supplies.
  • Cover operational costs.
  • Pay for advertising and marketing initiatives.

Where to get medical practice loans

Medical practice loans are available from banks, SBA lenders and online lenders.

Banks

Medical business loans from a traditional bank will typically offer the lowest interest rates and most competitive repayment terms. To qualify, however, you’ll usually need to meet strict qualification requirements. Most banks want to see at least two years in business, good credit and strong finances.
Although you may be able to use a standard business bank loan to finance your medical practice, some banks, such as Bank of America, Wells Fargo, Citibank, TD Bank and U.S. Bank, offer specialized loan programs for health care professionals. These loans can be used for a variety of purposes, offer long repayment terms and large loan amounts.
These dedicated programs may also offer additional benefits, such as:
  • Fee discounts if you belong to an association that endorses the lender.
  • Support programs to assist with practice management.
  • Dedicated project managers.
  • Fee discounts for additional banking products.
  • Loan prepayment waivers.
  • Interest-only payment options.
Banks don’t often provide many details about these programs online. You’ll likely need to contact the bank directly or visit a branch location for more information about applying for a loan.

SBA lenders

Like bank loans, U.S. Small Business Administration (SBA) loans offer competitive interest rates and long repayment terms. These loans are partially guaranteed by the SBA and issued by participating lenders, typically banks and credit unions.
Both SBA 7(a) loans and 504 loans can help finance medical practices. SBA 7(a) loans can be used for a variety of purposes, including working capital needs, equipment or inventory purchases, as well as general expansion and renovations. SBA 504 loans, on the other hand, can only be used to purchase or upgrade large fixed assets, such as equipment and real estate.
To qualify for an SBA loan, you’ll likely need to be an established business with good credit and finances.

Online lenders

Compared to bank and SBA loans, online lenders can offer faster access to funds. These lenders leverage technology to expedite the underwriting process.
In addition, online lenders usually have flexible qualification requirements — and may work with startups or borrowers with bad credit. As a result, however, these medical business loans typically have shorter repayment terms and higher interest rates.

🤓 Nerdy Tip

If you’re looking to buy equipment for your medical practice, start your search with specialized equipment financing companies. Because the equipment you purchase serves as collateral on the loan, equipment lenders may rely less heavily on traditional underwriting criteria, such as credit score or time in business. Equipment financing companies may also offer dedicated industry knowledge and expertise, as well as a more personalized funding experience.

How to get medical practice loans

To get a business loan for your medical practice, follow these steps:

1. Evaluate your financing needs

Consider which type of medical business loan is best for your needs. If you need working capital, for example, a business line of credit may be a good option. If you want to purchase a new location for your practice, on the other hand, you might use a commercial real estate loan.
You should also consider how much financing you need and how much debt you can afford. A business loan calculator can help you estimate potential payments and interest costs.

2. Review your qualifications

Most lenders will consider factors like personal credit score, annual revenue and time in business when underwriting your loan application. They may also look at your cash flow, available collateral and existing debt obligations.
By reviewing business loan requirements ahead of time, you can get a sense of where you stand with different lenders and better direct your financing search.

3. Research and compare lenders

In general, the best medical practice loan for your business will be the one that offers the lowest rates and most ideal terms. Your decision, however, may also be influenced by the funding process and timeline.
You should research multiple small-business lenders to find the right fit for your needs. You’ll want to compare your options in terms of:
  • Loan types.
  • Maximum loan amounts.
  • Repayment terms and schedule.
  • Interest rates.
  • Funding speed.
  • Application process.
  • Lender reputation.
If you’re looking at specialized programs for medical practice loans, you should also consider any unique discounts or features the lender offers.

4. Gather documentation and submit your application

The application process will vary based on your lender and loan type. Banks and SBA lenders will often require extensive documentation, whereas online lenders may not require as much paperwork.
In either case, however, you may need to provide:
  • Basic information about you and any other business owners.
  • Professional and business licenses and certificates.
  • Personal and business bank statements.
  • Personal and business tax returns.
  • Business financial statements.
  • A description of collateral.

5. Review your loan agreement and get funds

When you apply for a bank or SBA loan, it may take anywhere from several days to several weeks to receive approval. Online lenders, on the other hand, may provide approvals as quickly as the same day.
Once you’ve received approval, your lender will send you a business loan agreement to sign. You should review the agreement thoroughly and make sure you understand all of the terms and conditions. If you have any questions or concerns, clarify them with your lender before signing.
After you’ve signed the agreement, the lender will transfer the funds to your business bank account.

Next steps:

Last updated on August 7, 2024

Methodology

NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms. - Flexible payment options. - Fast funding times. - Accessible customer service. - Reporting of payments to business credit bureaus. - Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.

Wondering if you qualify?

It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.

See Your Loan Options