Healthcare & Medical Practices
Medical Practice Loans
Medical and dental practices finance equipment, build-outs, and the gap created by slow insurance reimbursement. Practices are viewed favourably by funders because receivables are predictable, which tends to mean larger amounts and better terms.
For healthcare & medical practices
What it pays for
- Imaging, chairs and treatment equipment
- Practice build-outs and relocations
- The gap while insurance reimburses
- Hiring clinical staff ahead of revenue
- Buying into or out of a partnership
- Won't affect your credit
- Free, no obligation
- Up to $500K
Why the bank said no
It is usually the same reason a lender says yes.
Practices are usually sound credit risks, so the obstacle is rarely approval. It is the reimbursement lag: money is earned weeks or months before it arrives, and that gap has to be funded by something.
Why do banks turn down medical practices for loans? →Funding options
Funding options for healthcare & medical practices.
The right product depends on what the money is for. One application here goes to the lenders in our network that fund healthcare & medical practices businesses in your state; they decide, typically within 24 hours, and funds can land in as little as 72 hours.
| What you need it for | What usually fits | Why |
|---|---|---|
| Imaging, chairs and treatment equipment | Equipment financing | Clinical equipment secures its own financing and prices close to a bank. |
| Practice build-outs and relocations | Longer-term financing (a bank or SBA loan) | Practices are generally sound credit, and a build-out pays back over years. |
| The gap while insurance reimburses | Working capital loan | Bridges the weeks between treating patients and being paid for it. |
| Hiring clinical staff ahead of revenue | Working capital loan | Covers payroll until the new hire's billings reimburse. |
| Buying into or out of a partnership | Longer-term financing (a bank or SBA loan) | A multi-year purchase; short-term funding fits only a down payment, a small buyout or the gap while the longer loan closes. |
How does each kind of funding work for healthcare & medical practices?
Checked by Alex Makowski.
Two things decide how each product behaves in a trade: how the money comes in, and whether the need comes back. An advance repaid as a share of card sales falls in a slow week; one repaid by a fixed daily or weekly debit against deposits does not. Equipment secures its own financing, so it costs less than unsecured money. A line costs interest only on what is drawn, for the days it is drawn, and is the hardest of the four to open, usually needing a year or two of trading and clean statements. A working capital loan has fixed repayment, so size it to your slowest month.
Merchant Cash Advance for healthcare & medical practices
Most practice revenue arrives from insurers and patients by ACH or check rather than at a card terminal, so an advance here usually means a fixed debit against deposits, not a share of card sales. For a practice with steady reimbursements it is rarely the right first choice: working capital or a line covers the same gap for less. It fits a short emergency better than a plan.
Working Capital Loans for healthcare & medical practices
The insurance gap is the core use. A claim submitted today is paid in weeks, while payroll runs every two weeks regardless. A working capital loan sized to the claims outstanding, repaid weekly, carries a practice through a slow payer or a change of billing system. It also covers hiring a clinician before their own billings start to come back.
Equipment Financing for healthcare & medical practices
Imaging systems, dental chairs, lasers and treatment equipment are expensive and hold enough value to secure their own financing, and lenders know them well. A vendor quote is usually the starting document. Technology that dates quickly, such as some imaging and laser systems, can suit a lease with an upgrade path better than a loan to own it.
Business Line of Credit for healthcare & medical practices
For an established practice, a line is often the best fit for reimbursement timing, because the gap recurs every month: draw when claims pile up, pay it down when the remittances arrive. Practices tend to have the predictable receipts providers want to see, which makes this the product a healthcare business should try for first.
What your deposits support
Before you apply
What to have ready before you apply.
- Six months of business bank statements showing payer deposits.
- Your payer mix, roughly. A practice weighted to slow payers is a different risk from one settling weekly.
- Any existing equipment finance, which underwriting will see anyway.
FAQ
Healthcare & Medical Practices: questions owners ask.
- How do practices fund slow insurance reimbursement?
- Working capital or a line of credit bridges it. A line of credit usually fits best because the gap recurs, so you draw when receivables build and repay when they clear.
- Is medical equipment financing easier to get?
- Generally yes. The equipment secures the loan, so lenders accept weaker credit and often quote better rates than on unsecured funding.
- Can a new practice get funding?
- It is harder under six months of trading, but practices are viewed favourably because receivables are predictable. Equipment financing is usually the most realistic starting point.
Healthcare & Medical Practices funding by state
Guides
Guides on this
Why do banks turn down medical practices for loans?
Usually they do not — practices are generally sound credit. The real problem is different: insurance reimbursement lags weeks or months behind the work, so the money is earned long before it arrives, and the gap has to be funded by something. Bank timelines rarely match a payroll date.
Your med spa wants to add a laser and you are not a physician. Who finances it?
Equipment lenders and the device makers' own finance arms will, once the spa has about six months of deposits and a medical director on paper. An established spa adding a device is usually an easy approval over three to seven years; a non-physician-owned spa is asked more questions about supervision than about credit. A line of credit for the ramp before the device is booked solid is the second product, and the one owners forget.
Insurance pays your practice 30 to 90 days after treatment. How do you fund payroll and a new associate in the gap?
A business line of credit is the right product: drawn for payroll and lab bills while claims are pending, repaid as reimbursements clear, costing nothing when it is not drawn. Practices qualify more easily than most businesses because payer deposits are steady and predictable. For hiring an associate — commonly a six-figure first-year cost with a 60 to 90 day ramp — a working capital loan sized to the ramp is the simpler alternative.
One application, every lender we work with
Find out what you qualify for before you need it.
Eleven questions, about two minutes. You see offers side by side and take one, or none.
- Won't affect your credit
- Free, no obligation
- Decisions usually inside 24 hours
- Up to $500K