Upgrade equipment, hire staff, or bridge the 60-90 day wait on insurance reimbursements. Business capital designed for healthcare professionals.
Medical practices, dental offices, physical therapy, chiropractic, and wellness businesses share a common challenge: insurance reimbursements take 60–90 days while operational costs — payroll, supplies, rent — are immediate. Our healthcare lenders understand HIPAA compliance requirements and structure funding accordingly.
Healthcare practices — medical, dental, veterinary, optometry, chiropractic, physical therapy, mental health — sit in lender-favored territory. Predictable insurance reimbursement creates AR that's effectively guaranteed (insurance pays, eventually). Patient retention is high (people don't shop providers like restaurants). Margins are healthier than most service businesses (15–30% net for established practices). Provider credentials are a barrier to entry that protects market position.
The result: healthcare-specific lenders quote rates 200–400 basis points below generic small business lenders for the same credit profile. Practice acquisition loans, working capital lines, and equipment financing are standard products. SBA 7(a) is heavily used for practice acquisitions. The exceptions are practices with insurance billing problems (heavy claim denials, audit risk) or specialty practices with thin payer mix — these face standard small business pricing.
| Product | Fit | Notes |
|---|---|---|
| Practice Acquisition Loan | Strong fit | Specialty product for buying an existing practice. 8–13% APR. 10-year terms. Sized to practice cash flow. |
| SBA 7(a) | Most common | Acquisitions, build-outs, equipment combo loans. 9.75–13.25% APR. Up to $5M. |
| Equipment Financing | Strong fit | Imaging, dental chairs, lab equipment, EMR upgrades. 8–15% APR. Equipment-secured. |
| Healthcare LOC | Established only | Specialty bank LOC for established practices. 8–14% APR. Often tied to insurance AR. |
| AR Financing / Factoring | For practices with payer issues | Healthcare-specific factoring. Pays 80–90% of insurance AR within days. 1.5–3% per month on factored amount. |
| Working Capital MCA | Last resort | For practices unable to qualify for cheaper products. 1.25–1.40 factor. Avoid if better terms available. |
The 6 most common capital deployments we see in healthcare businesses, with the funding product that fits each.
$300K–$3M acquisition. SBA 7(a) is cheapest; specialty practice-acquisition lenders (Bank of America Practice Solutions, etc.) can fund $5M+ at competitive rates.
Common in 2–4 owner practices. $200K–$1.5M. SBA 7(a) for cheapest financing.
CBCT, lasers, ultrasound, surgical microscopes. $80K–$400K. Equipment financing at 8–14% APR.
Tenant improvements, equipment, working capital reserves. $200K–$1M. SBA 7(a) combination loan.
Insurance pays in 30–90 days; payroll runs every 2 weeks. Healthcare AR financing or LOC.
Implants, cosmetic injectables, in-house lab. Equipment + training + marketing. Equipment financing + working capital loan combo.
Beyond the standard credit + revenue + time-in-business thresholds, healthcare businesses face industry-specific underwriting variables.
Practice acquisition loans from specialty healthcare lenders (BofA Practice Solutions, Live Oak Bank, US Bank Practice Finance, Lendeavor) are typically the best terms — 8–13% APR, 10-year terms, and they understand the cash flow patterns. SBA 7(a) is the alternative, particularly for transactions $1M–$5M. SBA can be faster than specialty lenders in some cases due to the streamlined SBA Express program ($500K and under).
Practice acquisition loans: typically up to 80–90% of practice value (sometimes 100% for very strong files). SBA 7(a): up to $5M. Equipment financing: equipment value, typically $15K–$500K per piece. Working capital: $50K–$500K based on practice cash flow.
Almost always. Personal guarantees from owning providers are standard for practice acquisition loans, SBA loans, and most equipment financing. Some specialty healthcare lenders waive personal guarantee requirements for borrowers with significant existing equity in the business or substantial reserves.
Sometimes. Some specialty healthcare lenders offer student loan refinancing alongside practice acquisition loans, or as a standalone product. SBA loans cannot be used to refinance personal student debt directly. The most common approach: structure the practice loan to free up cash flow that you can then redirect to faster student debt payoff.
SBA Express: 15–36 days for healthcare. SBA 7(a): 45–90 days. Specialty practice acquisition loans: 30–60 days. Equipment financing: 5–14 days. Working capital MCA: 24–72 hours (last resort).
Practice acquisition: last 3 years of practice tax returns, last 3 years of provider personal returns, P&L, production reports, payer mix breakdown, lease, equipment list with values, business plan, personal financial statement, license documentation. Equipment financing: equipment quote, brief practice info, last 6 months of bank statements.
Yes — healthcare AR factoring is a substantial sub-market. Lenders advance 80–90% of clean insurance AR within days, charging 1.5–3% per month on factored amount. Best for practices with significant slow-paying commercial insurance AR. Less common than in B2B services because most healthcare AR is comparatively fast-paying.
Yes — new-practice startup loans are a healthcare lender specialty. Programs from Live Oak, BofA, US Bank, and Wells Fargo specifically fund credentialed providers opening de-novo practices. Typical structure: working capital + build-out + equipment combined into a single 10-year SBA-backed loan. Provider credentials and a strong business plan substitute for revenue history.