2026 Complete Guide
5 ways to finance a medical practice: SBA 7(a), equipment financing, practice acquisition loans, credit lines and term loans. Amounts, rates and timing for each.
Buying or refinancing the building? SBA 504, bank and CMBS options for the real estate itself are in our guide to medical office building loans.
Healthcare Practice financing
Each serves different healthcare practice needs
Best for: Practice acquisition, real estate purchase, major facility expansions $200K+
Best for: MRI machines, X-ray, dental chairs, ultrasound, surgical equipment
Best for: Buying an existing medical, dental, or specialty practice from a retiring physician
Best for: Insurance reimbursement gaps, payroll, supplies, cash flow between billing cycles
Best for: EMR systems, staff training, marketing, facility renovation, any practice need
Side by side
| Loan type | Amount | Rate | Term | Approval |
|---|---|---|---|---|
| SBA 7(a) Loan | $50K–$5M | 8.5–11.5% APR | 10–25 years | 30–60 days |
| Equipment Financing | $10K–$1M | 6.5–20% APR | 2–7 years | 1–5 days |
| Practice Acquisition Loan | $100K–$5M | 7.5–10.5% APR | 5–10 years | 14–45 days |
| Business Line of Credit | $25K–$500K | 8.75–45% APR | Revolving | 3–14 days |
| Business Term Loan | $25K–$750K | 7.5–45% APR | 1–5 years | 3–14 days |
Typical ranges, updated September 2026. Your terms depend on your revenue, credit, time in business and the lender.
Worked example
A practice gets paid weeks after it treats patients, while payroll and rent are due now. The money sitting in insurance receivables is what a line of credit protects. Example: a practice collecting $150,000 a month that waits an average of 45 days for payment. Assumptions for illustration only.
| Amount | |
|---|---|
| Monthly collections | $150,000 |
| Average days to collect | 45 days |
| Money tied up in receivables ($150,000 × 45 ÷ 30) | $225,000 |
| If payers slow to 60 days | $300,000 |
| Cash the slowdown takes out of the bank | $75,000 |
That $75,000 is what a line of credit should cover — a payer delay, a billing system change or a credentialing gap with a new insurer. Lenders will ask for your receivables aging by payer and your collection rate; a practice that tracks days in receivables and brings it down frees cash without borrowing at all.
FAQ
Common questions about medical practice financing
Practice acquisition loans allow healthcare providers to purchase an existing practice from a retiring physician. These loans typically range from $150K–$5M and include goodwill financing — the patient list, staff, and reputation are all included in the valuation. Rates run 7.5–10.5% APR over 5–10 years.
Size it to how much cash a payer slowdown would tie up. A practice collecting $150,000 a month at 45 days has about $225,000 in receivables; if payers slow to 60 days that rises to $300,000, so a line of about $75,000 covers the gap. Lenders will ask for your receivables aging by payer.
Yes. SBA 7(a) loans are an excellent fit for physicians. Healthcare practices have stable revenue and low default rates, making them attractive to SBA lenders. Loans up to $5M at 8.5–11.5% APR over 10–25 years. Requires 680+ credit and 2+ years in practice.
Medical equipment financing offers 1–5 day approval at 6.5–20% APR. The equipment serves as collateral. Qualifies for MRI machines, X-ray, ultrasound, surgical tools, dental chairs, CBCT scanners, and more. Most healthcare equipment lenders offer $10K–$1M with 600+ credit required.
Business lines of credit ($25K–$500K) are ideal for bridging insurance reimbursement delays. Draw only what you need, pay interest on usage only, and reuse as payments come in. Many practices maintain a permanent LOC to smooth out the 30–90 day insurance lag cycle.
SBA and practice acquisition loans require 680+. Equipment financing qualifies at 600+. Lines of credit typically need 650+. Healthcare providers often have stronger credit profiles than other small businesses — focus on paying down personal debt before applying.
Equipment financing funds in 1–5 days. Lines of credit take 3–14 days. Practice acquisition and SBA loans take 30–90 days due to due diligence on goodwill valuation. Plan acquisitions 3–4 months ahead. A pre-established line of credit is the best safety net for urgent needs.
Guides
Hotels & HospitalityRenovation, seasonal funding & property loans 
HVAC & PlumbingFleet expansion, equipment financing, and working capital for HVAC and plumbing 
LaundromatEquipment replacement, build-out & new locations Logistics & DeliveryFleet expansion, technology upgrades, and working capital for logistics and last-mile delivery 
ManufacturingEquipment, payroll & working capital loans 
Pet Services & GroomingGrooming, boarding & veterinary practice financing 
RestaurantsSeasonal cash flow, equipment & expansion financing 
Retail StoresInventory, remodels & multi-location growth funding Compare bank and non-bank lenders with one application — an advisor reviews it before any lender sees it.
No credit impact to check your options · (714) 880-4879
