What is a medical practice loan?
Small business loans for medical practices can help doctors who own their own practice secure funding. Most doctors can qualify for a medical practice loan due to their solid net worth, high earning potential, and consistent revenue. Doctors can avoid hefty amounts of paperwork and save time using alternative lenders.
How much does it cost to start a medical practice?
Starting a medical practice can be expensive. Let’s take a look at some of the costs...
Dentistry
The average total cost for new dental startups can range from $350,000 to $500,000.
General Medicine
Starting a small general medicine practice can range from $70,000 to $100,000 plus.
And More Practices
No matter what kind of private practice you intend to open, initial startup costs can range from $20,000 to $30,000.
Pros and Cons of financing your medical practice
Pros
- Launch or grow your business faster
- Build business credit
Cons
- Taking on debt
- Interest and fees
What credit score is needed to apply for a medical small business loan?
Minimum credit scores can vary from lender to lender. A credit score of 680 or better can increase your chances of approval. If you have bad credit you should consider peer-to-peer lending.
How fast can a healthcare business loan be funded?
Alternative lenders can fund medical practice loans as soon as one business day.
Best Medical Small Business Loan Options
Online Term Loans
Online terms loans can secure your business a lump sum upfront that you must repay over a set period of time.
Pros
- Borrow large amounts
- Long repayment terms
- Quick approval and funding
- Requirements may be looser
Cons
- Payments begin immediately after funding
- Collateral may be required
- Shorter term loans may have
OnDeck
Originally founded in 2017, OnDeck is one of the largest online small business lenders that can provide quick funding.
Pros
- Transparent terms
- Access to loans through business debit cards feature coming soon
- Funds available quickly
Cons
- Higher APRs
- Origination fee
- No factoring offered (all funding options incur debt)
» MORE: OnDeck Business Loans Review
StreetShares
StreetShares is an online lender that can provide lines of credit, installment loans, and contract financing for medical practices. It was originally founded by veterans for veterans, but can serve non-veterans as well.
Pros
- Relaxed borrower qualification
- Competitive rates
- No prepayment penalties
- Outstanding customer service
Cons
- Not the best option for larger businesses
- Must have 1 year in business or $100,000 in revenue
LendingClub
LendingClub offers peer-to-peer lending options with fast approval and reasonable interest rates. Peer-to-peer lending connects people with money to people who need to borrow money.
Pros
- Clear terms outlined prior to signing up for a loan
- Well established pattern of service
- 36- or 60-month terms
- Information easily accessible on their website
- Receive pre-approved offer in minutes
- Easily apply online
- Loans usually funded in less than 10 days
- Competitive interest rates between 6 to 30 percent
- Nationwide availability for most types of credit
Cons
- Application process may require copies of tax documentation
- Passes accounts into collection quickly after missed payment
- Unsecured loans only
» MORE: LendingClub Business Loans Review
QuarterSpot
Founded in 2013, QuarterSpot is an online lender that can provide short term loan products for medical practices.
Pros
- Minimum credit score 550
- Prepayment discount
- Transparent terms and fees
Cons
- Additional fees may apply
- High origination fee
- Moderate factor rate
SBA 7(a) Loans
The Small Business Administration (SBA) is a government resource created to encourage the growth of small businesses. The SBA may be a more affordable and more accessible option for medical practices that need funding.
Pros
- Easier to secure than traditional loans
- Lower interest rates
- Down payments as low as 10%
Cons
- Personal collateral may be required
- Long application process
- Lenders have more discretion in setting loan terms
SmartBiz
SmartBiz is an online lender that can provide financing for medical practices.
Pros
- Low APRs
- Repayment terms up to 10 years
- Easy application and approval process
Cons
- Variable APR
- Longer loan term can increase the cost of the loan
- Strict requirements on how money is spent
- High fees
» MORE: SmartBiz SBA Loan Review
A business line of credit can be compared to a business credit card. However, with a business line of credit you can withdraw cash if necessary.
Pros
- Helps balance cash flow
- Only pay for what you use
- Take advantage of more opportunities
Cons
- Charges and fees
- Difficult to qualify for
- Low borrowing limits
BlueVine
BlueVine can provide capital for small to medium sized B2B and B2G businesses. This fintech company is known for invoice factoring and servicing funding requests faster than most of its competitors.
Pros
- Fast and easy application process
- Funding decisions typically made within 24 hours
- 80% of production is from repeat customers
- No hard credit checks
Cons
- No funding for B2C companies
- Prefers personal FICO scores above 600
- Factoring transactions are full recourse
» MORE: BlueVine Business Loan Review
EasyFunding
EasyFunding is an online lender that can work with bad credit borrowers and finance medical practices.
Pros
- High approval rates
- Works with bad credit
- Flexible payments
- Quick funding
Cons
Traditional Banks
Traditional bank loans may have lower interest rates but can be harder to qualify for.
Pros
- Low fixed interest rates
- Available for many uses
- Predictable monthly payments
Cons
- Difficult to qualify for
- Longer wait time
- Collateral may be required
Conclusion
Using an online lender can be an efficient way to secure funding for a medical practice loan. PrimeRates.com provides a secure online platform for you to shop and compare offers.
Three steps to get started with PrimeRates:
#1. Apply online in minutes
#2. Select your personalized loan offer
#3. Receive funds quickly
Set yourself up for success and apply online today!
