Practice loan options

Healthcare is a favored lending category: default rates on practice loans are low, so money is available even for startups. The question is which flavor.

The three main routes

Route	Typical terms	Best for	Watch for
Bank practice-lending programs (specialty healthcare lenders)	100% financing common, 7-15 yr terms, competitive fixed rates, fast	Startups and acquisitions in dental, vet, medical	Often requires moving your deposits to that bank
SBA 7(a)	Up to $5M, 10-25 yr terms, capped variable rates, slower (30-90 days)	Deals banks won’t do conventionally, thin borrowers, real estate via 504	Guaranty fee, personal guarantee, more paperwork
Equipment financing / leases	3-7 yrs, secured by the equipment	Adding equipment without touching working capital	Effective rates can hide in lease factors; compare APR

Most startups end up with a specialty practice lender or SBA for the main project, plus equipment financing layered as needed. A working-capital line of credit alongside the term loan is cheap insurance for the collections lag (why it exists).

What underwriting wants

Production history (your last 2-3 years of W-2s or production reports), personal credit and modest liquidity, a projection built on realistic ramp, and a total ask that includes working capital, size it with the startup cost calculator. For acquisitions, the target’s collections history mostly carries the deal (Buy a practice). Expect a personal guarantee everywhere, startup or acquisition. Expect lenders to require life/disability insurance assignments. And expect the MSO/PC structure to need explaining: lenders lend into it routinely, but the MSA and both entities’ financials go in the file.

Money to start

Deals & real estate

The three main routes

What underwriting wants

​The three main routes

​What underwriting wants

​Related

The three main routes

What underwriting wants

Related