Best Medical Practice Loans and How to Get One
Medical practice loans can be used to start, manage, upgrade or expand a health care business.
| Lender | NerdWallet rating | Best For | Max loan amount | Min. time in business | Min. interest rate | Term length | Learn more |
|---|---|---|---|---|---|---|---|
 with Fundera by NerdWallet | Read expert review | Best for SBA loans for medical practices | $5,000,000 | 24 months | 10.25% | Up to 25 years | with Fundera by NerdWallet |
 | Read expert review | Best for Bank medical practice loans | $5,000,000 | Undisclosed | Undisclosed | Undisclosed | |
 with Fundera by NerdWallet | Read expert review | Best for Fast funding | $500,000 | 24 months | 15.22% | 6 months to 5 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for Bad credit | $1,500,000 | 6 months | Undisclosed | 4 to 18 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for Startups | $500,000 | 6 months | Undisclosed | 4 to 24 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for Equipment financing | $250,000 | 24 months | 6.5% | 12 months to 5 years | with Fundera by NerdWallet |
best medical practice loans: More details
U.S. Small Business Administration: Best 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.
Low interest rate
SBA 7(a) loan
with Fundera by NerdWallet
Max loan amount
$5,000,000
Min. credit score
650
Term length
Up to 25 years
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
with Fundera by NerdWallet
Bank of America: Best 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
Max loan amount
$5,000,000
Min. credit score
Undisclosed
Term length
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.
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.
iBusiness Funding: Best for Fast funding
iBusiness Funding (formerly Funding Circle) provides medical practice loans for established businesses with good credit. Funds can be available in as little as two days.
May fund quickly
iBusiness Funding - Online term loan
with Fundera by NerdWallet
Max loan amount
$500,000
Min. credit score
660
Term length
6 months to 5 years
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to five years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to five years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
with Fundera by NerdWallet
Fora Financial: Best 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
with Fundera by NerdWallet
Max loan amount
$1,500,000
Min. credit score
570
Term length
4 to 18 months
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.
- Charges an origination fee.
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.
- Charges an origination fee.
with Fundera by NerdWallet
National Funding: Best 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
with Fundera by NerdWallet
Max loan amount
$500,000
Min. credit score
600
Term length
4 to 24 months
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 offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
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 offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
with Fundera by NerdWallet
Triton Capital: Best 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
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
580
Term length
12 months to 5 years
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
with Fundera by NerdWallet
What are medical practice loans?
Medical practice loans refer to loans that health care professionals (e.g. doctors, dentists, optometrists, veterinarians
- 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.
- Refinance or
consolidate existing debt
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
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 SBA 504 loans
To qualify for an SBA loan
» MORE: Compare the best SBA lenders
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
🤓
If you’re looking to buy equipment for your medical practice, start your search with specialized Nerdy Tip
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 commercial real estate loan
You should also consider how much financing you need and how much debt you can afford. A business loan calculator
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
By reviewing business loan requirements
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
- 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
After you’ve signed the agreement, the lender will transfer the funds to your business bank account.
Next steps:
- If you can qualify for a bank loan: Compare the
best banks for business loans - If you need fast funding or can’t qualify for traditional options: Explore the best
online business loan options - If you’re a startup or have bad credit: Consider
microlenders - If you don’t want to take on debt: Learn more about alternative funding types, such as
small-business grants equity financing
Last updated on August 7, 2024
How Fundera by NerdWallet works
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cost, speed, repayment schedule — can play a role in deciding which
product is right for you. Let us help you through the process.
Get started
Fill out one simple application
Answer a 3-minute questionnaire about your business to get personalized lending options. It’s free and won’t impact your credit score.
See your business loan options
Compare interest rates and repayment terms to choose the best product for your needs.
Get your loan
If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.
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 editorial guidelines
