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.


2018 Tax Audit Triggers Business Owners Need to Know

by Amy Fontinelle on February 16, 2018
While the overall risk of an individual tax audit is low, the odds go up when you file a business… Read more

How Your Tax Strategies Can Affect Getting a Business Loan

by Caitlyn Rose on January 3, 2018
Traditional banks are increasingly wary of lending to small businesses because it's simply not profitable enough. Instead, they go after the… Read more

Low-Interest Loans & Where To Find Them

by Dustin Clendenen on December 15, 2017
Sometimes we fall behind on our credit card payments, and those high APRs can start to take a real toll… Read more

How to Get a Loan In 2018 (The Easy Way)

by Rebecca Hosley on December 6, 2017
Applying for a loan can be confusing if you've never done it before, or if it's been a while (technology… Read more

9 Techniques for Managing Seasonal Sales Fluctuations

by Jackie Lam on September 8, 2017
If you’re a small business owner whose cash flow is affected by seasonal sales — we’re talking seasonal companies like… Read more

Amazon Lending – A Comprehensive Resource on Business Loans from Amazon

by Caitlyn Rose on August 14, 2017
The Amazon Marketplace has quickly become a go-to channel for both large and small businesses looking to develop an online… Read more

7 Basic Business Loan Requirements – Know What Lenders Are Looking For

by Rissa Ann on August 5, 2017
There are more ways than ever to fund a business launch, expansion, or unanticipated expense, but business loan requirements can… Read more

The 5 C’s of Credit Deciding Your Business Fate

by Amy Fontinelle on May 8, 2017
When it comes to small business loans, success is spelled with the 5 c's of credit. We know, applying for… Read more

How to Sell to Millennials in 2018 – What is a Millennial Person Thinking?

by Brenna Lemieux on May 5, 2017
With Gen Y collapsing under it's own debt, learning how to sell to millennials may not be your highest priority for… Read more

5 Types of Grants For Women-Owned Businesses

by Caitlyn Rose on December 29, 2015
If you are a woman thinking about starting a small business, you are part of a growing trend. Since 1997,… Read more
Join For Free & Start Browsing Loans