Funding for Medical Practices

Funding for Medical Practices
Ronis Gracie
on November 13, 2015
Read in 1 min

While typically lucrative, medical practices are challenging enterprises to operate due to the nature and expense of the industry. Despite the focus on healthcare, to be successful, a medical practice must be managed as a business. Established healthcare facilities require funding to expand, keep the business in operation or upgrade.

Why Medical Practices Need Loans

Healthcare professionals need business loans to lease a space, buy new equipment and hire staff. The country’s economic conditions have been less than ideal, so medical practices may need business loans to expand by acquiring another facility. If the practice has been in operation for a while, then new or advanced equipment may be in order along with facility upgrades.

Business Loan Options

Lenders offer several types of loans for medical practices, which include:

A working capital loan is funding that you can use based on the needs of your business. For instance, you can use the funds to expand, consolidate accumulated debt or even renovate.

If you’re in a position where you need to grow to ensure success, then consider obtaining a loan for practice procurement. If you are approved for a practice procurement loan, then you can use it to buy out a business partner or purchase a stake in a second or third practice.

Medical equipment is expensive. In addition, technological advancements frequently occur in the industry, so you may need funding to stay current. Medical equipment leases come in different payment options. You can also take out a lease and a loan at the same time.

Debt consolidation loans are another lending option. Take advantage of debt consolidation to reduce your outgoing expenses. This kind of loan usually features a low monthly payment, which will free up your practice’s incoming funds to invest in your healthcare facility.

Complications and Obstacles

Medical practices are unique because the type of operation usually has a high overhead. This can create an obstacle since a loan may be denied due to a high debt to income ratio. Time can be a complication when it’s limited, but if you aren’t in a hurry to obtain funding, be sure to search for the lowest interest rate loan available.

What Qualifications do you Need?

Good credit and a documented plan for the funds will increase your chances of becoming qualified for a medical practice loan. It will be easier to qualify for additional funding when your business has equity available. Depending on the loan type, you may need a down payment.

Last Considerations

Medical practice loans are available for those who qualify. Be sure to assess the different loan options to obtain the best funding for your practice’s future.

Ronis Gracie Finance Journalist

A serial entrepreneur experienced with building several small companies from the ground up and consulting for many others, Ronis understands the finer points of small business financing. He’s passionate about small business & is committed to simplifying small business lending for others.


9 Ideas on How to Build Business Credit Fast

by Taylor Gordon on June 6, 2017
If you want to learn how to build business credit to access better financing options, this is the article for… Read more

Minority Business Loans – Discover 36 Opportunities Here

by Taylor Gordon on May 15, 2017
You may be searching for minority business loans because you have an idea for a great new business. Or perhaps… Read more

Small Business Loans for Women – Compare 38 Options in One Place

by Rebecca Hosley on May 15, 2017
When it comes to small business loans for women, knowledge is power. Women are not new to entrepreneurship, but they… Read more

Debt Service Coverage Ratio Explained in Acute Detail

by Amy Fontinelle on May 10, 2017
Sara owns a thriving restaurant, and she thinks the time is right to expand. Specifically, she wants to expand the… Read more

Microloans: What They Are & How To Take Advantage

by Eric Goldschein on May 1, 2017
Microloans refer to a category of financing where you can qualify for short-term working capital (or even start up capital) with low… Read more

How to Calculate ROI – Making Your Small Business Loan Count

by Dustin Clendenen on April 24, 2017
Here's a controversial thought: Not all debt is bad debt. Since not all of us are independently wealthy or particularly… Read more

Small Business Funding – Debt Financing vs Equity Financing

by Rebecca Hosley on April 22, 2017
Everything You Need to Know About Small Business Funding in 2017 Deciding to start your own business is a huge… Read more

Small Business Loans for Veterans – A Definitive Guide to VA Business Loans

by Eric Goldschein on April 7, 2017
Small business loans for veterans are available through various channels and are also often supplemented with business development tools. Business… Read more

EMV Compliance: The Good, The Bad, & The Ugly

by Amy Fontinelle on March 7, 2017
As a savvy business owner that accepts credit and debit cards, you should aleady know the dangers of failing to upgrade… Read more
Join For Free & Start Browsing Loans