Healthcare
Business Funding for Medical Practices
Medical practices require expensive diagnostic equipment, qualified staff, and compliant office buildouts before seeing the first patient. Insurance reimbursement cycles create a persistent 30 to 90 day gap between providing care and receiving payment. Growing a practice by adding physicians, new specialties, or satellite locations demands capital that most doctors cannot self-fund from operations alone.
Common Uses
What Medical Practices Use Funding For
- Purchase diagnostic imaging equipment like X-ray machines, ultrasound systems, and EKG units
- Build out exam rooms, waiting areas, and reception desks to meet ADA and HIPAA requirements
- Cover payroll for nurses, medical assistants, and front office staff during ramp-up periods
- Implement or upgrade electronic health records (EHR) and practice management software
Funding Options
Best Funding Types for Medical Practices
SBA 7(a) Loan
Ideal for practice acquisition or opening a new office. SBA loans offer long repayment terms that keep monthly obligations manageable while you build your patient panel. Lenders view physician-owned practices as low-risk borrowers.
Equipment Financing
Finance imaging systems, exam tables, sterilization equipment, and lab instruments with the equipment as collateral. Medical equipment holds value well and lenders offer terms up to 7 years for higher-cost items.
Medical Practice Line of Credit
Keep a revolving credit facility to smooth out the cash flow gaps caused by insurance reimbursement delays. Draw when reimbursements are slow and repay when the payments come through.
What Lenders Look For
Qualification Notes for Medical Practices
Related Industries
Related Healthcare Funding
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