Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it’s buying a car or taking on a loan. He has written for Bloomberg, The Associated Press, NerdWallet, Car and Driver magazine, among many others covering various financial topics.
Colin Beresford
Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it’s buying a car or taking on a loan. He has written for Bloomberg, The Associated Press, NerdWallet, Car and Driver magazine, among many others covering various financial topics.
Deputy Editor, Personal and Business Loans
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
If you’re a physician, specialist or other healthcare professional looking to open your own practice, you may need financing. Medical practice loans offer funding to medical practitioners to help fund the opening, operation or expansion of a private practice.
You can use medical practice financing to cover a variety of costs, including purchasing equipment and covering payroll expenses. The best loans for healthcare workers offer competitive interest rates and flexible repayment terms that work with your budget.
Best Medical Business Loans
BEST FOR SHORT-TERM LOANS
OnDeck
Editor’s Take
We picked OnDeck for its variety of business lending products and same-day funding. OnDeck offers a term loan from $5,000 to $250,000 with repayments terms of up to 24 months. You can also access a credit limit of $6,000 to $100,000 through its line of credit with a 12-month repayment term that resets after each withdrawal.
Pros & Cons
Term loans from $5,000 to $250,000
Lines of credit from $6,000 to $100,000
Same-day funding
Low minimum credit score requirement
$100,000 minimum annual revenue requirement
Must have been operating for at least one year
Does not lend to businesses in North Dakota
Details
Eligibility
Minimum credit score: 625
Time in business: One year
Minimum revenue: $100,000 per year
Turnaround time
You can apply and receive a decision from OnDeck on the same day.
OnDeck has carved a niche in the realm of alternative lending, offering expedited access to capital for businesses that may not qualify for traditional bank loans. Its big advantage is the availability of funds on the same day or next while not being affected by a hard credit pull. However, this aggressive lending practice also comes at a steep price.
— Abid Salahi, co-founder and CTO, FinlyWealth
BEST FOR FAST FUNDING
QuickBridge
APR range
Factor rates start at 1.11
Factor rates start at 1.11
Editor’s Take
QuickBridge provides small business loans to business owners nationwide. Applying is quick and funding can happen within 24 hours, but you need fair to excellent credit to qualify.
Interest on loans from QuickBridge is expressed as a factor rate. To determine the cost of borrowing, multiply your desired loan amount by the factor rate. For example, if you borrow $30,000 at a factor rate of 1.10, you would owe $33,300 in total with $3,300 in interest. With a loan term of six months, your interest rate would be 22%, but that doesn’t include any fees the lender can tack on.
Pros & Cons
Flexible repayment options
Quick application and fast funding deposited to a bank account
Early payoff discounts
Loan interest may be high
$250,000 minimum annual revenue requirement for small business loans
Only short-term repayment terms are available
Details
Eligibility
Minimum credit score: 600
Time in business: Six months
Minimum revenue: $250,000 per year
Turnaround time
You can apply and receive a decision from QuickBridge on the same day.
QuickBridge, which operates as an alternative lender, provides small businesses with funding within a matter of days. Its thorough approval process involves looking at your business as a whole, more than just your credit score. However, for approval, there’s a minimum credit score requirement of 600 and an annual revenue requirement of $250,000, which isn’t the lowest in the industry.
While the speedy lending process may seem attractive, QuickBridge charges interest as a factor rate starting at 1.10 plus an origination fee in the range of 1% to 5%, making the loans quite pricey.
— Abid Salahi, co-founder and CTO, FinlyWealth
BEST FOR SMALL AND LARGE LINES OF CREDIT
American Express® Business Line of Credit
Minimum Credit Score
660 FICO at the time of application
660 FICO at the time of application
Editor’s Take
American Express Business Blueprint™ is best for its American Express® Business Line of Credit (formerly Kabbage from American Express and Kabbage Funding™), which gives business owners the chance to secure funding between $2,000 to $250,000. Repayment terms include six, 12, 18 and 24 months.
Line of credit customers incur a loan fee for each month they have an outstanding balance. Total monthly fees incurred over the loan term range from 3% to 9% for six-month loans, 6% to 18% for 12-month loans, 9% to 27% for 18-month loans and 12% to 18% for 24-month loans.
In addition to its line of credit, American Express Business Blueprint provides other tools beneficial to small business owners, including its own mobile app that provides comprehensive cash flow insights. All businesses are unique and are subject to approval and review.
Pros & Cons
No prepayment penalty
Four different repayment options
Offers small to large lines of credit
Monthly fees on unpaid balances
Requires personal guarantee
Lines of credit over $150,000 are only available to borrowers who meet additional criteria
Details
Eligibility
Minimum credit score: 660 FICO at the time of application
Time in business: At least one year
Minimum revenue: At least $3,000 monthly
All businesses are unique and are subject to approval and review. The required FICO score may be higher based on your relationship with American Express, credit history and other factors.
Turnaround time
Once application is approved, funds can take up to three business days to appear in your account, depending on your bank.
The American Express® Business Line of Credit allows you to qualify at a credit score of 660 FICO at the time of application*, so it’s not a great option for any business with a bad credit rating.
Rather than a typical revolving line of credit, you must choose [from available terms] with varying fees. Every time you withdraw from your business line of credit, it’s treated as a separate installment loan rather than being added to existing loans.
One downside to the American Express® Business Line of Credit is the time it takes to receive your cash. You’ll need to wait for your funds to be deposited within three business days, while other lenders offer same-day options. If you need your cash fast, that delay becomes a problem.
— Jonathan Feniak, general counsel and head of finance, LLC Attorney
BEST FOR FLEXIBLE LINES OF CREDIT
Bluevine
APR range
Simple interest starts at 5.9% or 7.8%
Simple interest starts at 5.9% or 7.8%
Editor’s Take
Bluevine is a financial technology company that provides financing solutions to small businesses nationwide. It specializes in business lines of credit and checking accounts. As of December 2021, Bluevine no longer offers invoice factoring as one of its financing methods.
Small business owners looking to access a line of credit on an as-needed basis can receive funds from $5,000 to $250,000. Bluevine offers two payment structures: Flex 6 or Flex 12. Customers who choose Flex 6 make weekly payments over 26 weeks while Flex 12 customers make monthly payments over 12 months. What’s more, after 45 days of payment on Flex 6, or 90 days of payment on Flex 12, you may be eligible for a credit line increase.
Bluevine also charges weekly or monthly fees for its line of credit. Standard pricing is 1.7% per week or 7% per month for line of credit draws.
Note: Bluevine’s line of credit is available in most U.S. states except Nevada, North Dakota, South Dakota, Puerto Rico and other U.S. territories.
Pros & Cons
Receive a decision within five minutes and instant funding with a Bluevine business checking account, or receive funds within 24 hours
Lines of credit up to $250,000
Low credit score requirement
No mobile app for its line of credit
Monthly revenue requirement
Not available to businesses in Nevada, North Dakota, South Dakota, Puerto Rico and other U.S. territories
Details
Eligibility
Eligibility varies on the specific program a business owner chooses.
Weekly plan
Minimum credit score: 625
Time in business: Two years
Minimum revenue: $40,000 monthly or $480,000 annually
Business type: Corporation or LLC
Bankruptcies: No past bankruptcies
Monthly plan
Minimum credit score: 650
Time in business: Three years
Minimum revenue: $80,000 per month or $960,000 annually
Business type: Corporation or LLC
Turnaround time
After you submit your application, you can receive a decision in as quickly as five minutes and instant funding with a Bluevine business checking account. Borrowers who don’t have a Bluevine business checking account can receive funds within 24 hours.
Bluevine appeared in a search we did for clients during the mini-banking crisis of 2023. Bluevine offers a bank sweep program that will provide FDIC insurance to their clients for up to $3 Million. FDIC insurance usually doesn’t matter, but when banks start failing, it really matters.
— Herman Thompson, Jr., advisory board member
BEST FOR SMALL- TO MID-SIZED BUSINESS
National Funding
Editor’s Take
National Funding offers working capital small business loans from $5,000 to $500,000 with terms of four months to two years, paid daily or weekly. Borrowers can use their funds for all working capital needs, including inventory, payroll, marketing, taxes and more. National Funding also offers equipment financing up to $150,000 but applicants must have a minimum personal credit score of 575 to qualify for that financing method.
Unlike most business lenders, National Funding offers early payoff discounts. Small business loan customers who repay their total remaining balance in full within the first 100 days of the contract will automatically receive a 7% discount off the total remaining balance. Equipment financing customers who repay the total remaining balance early, at any point during the term, will automatically receive a 6% discount off the total remaining balance.
Pros & Cons
Financing up to $500,000
Early payoff discounts
Most loans are funded within 24 hours of approval
Requires daily or weekly payments
Potentially high borrowing costs
Requires minimum gross annual sales of $250,000
Details
Eligibility
Minimum credit score: 600 (575 for equipment financing)
Time in business: Six months
Minimum sales: $250,000 per year
Turnaround time
Most loans are funded within 24 hours of approval, subject to receipt of required documentation, underwriting guidelines and processing time by your bank.
National Funding offers loans from $5,000 to $500,000, but two years is the maximum length for a large loan. I had a client that got excited by what he thought would be a lending source that could do $500k for five years, but the five-year loan was only offered at $100,000. A local banker made a collateralized loan for the large equipment purchase, and the client took a small short-term loan from National Funding to help with cash flow during a tough spot.
— Herman Thompson, Jr., advisory board member
BEST FOR QUICK APPROVALS
Fundbox
APR range
Interest rates start at 4.66%
Interest rates start at 4.66%
Editor’s Take
Fundbox is an AI-powered business lending platform that speeds up the application, decision-making and funding process. It offers decisions within three minutes and funds as soon as the next business day.
Prospective borrowers have two business financing options through Fundbox. Business owners can apply for revolving business lines of credit up to $150,000 with repayment terms of 12 or 24 weeks. Your available credit goes back up as you repay your line of credit.
Pros & Cons
No prepayment penalty
Low minimum annual revenue requirement
Next-business-day funding
Only short-term repayment terms are available
Does not disclose APRs
Details
Eligibility
Minimum credit score: 600
Time in business: Six months
Minimum revenue: $100,000 per year
Turnaround time
With a business line of credit from Fundbox, you can receive your funds as soon as the next business day.
The approval process is quick and Fundbox is available for the credit-challenged business. Credit approvals are usually small, so this [typically] isn’t an option for larger purchases. I had a small business client that had Fundbox integrated with her Stripe dashboard, which made it convenient.
— Herman Thompson, Jr., advisory board member
BEST FOR HEALTHCARE PROFESSIONALS
TD Bank
Loan amounts
$10,000 to $1 million
up to $5 million for small business loans
Learn More
From participating partners via businessloans.com’s website.
$10,000 to $1 million
up to $5 million for small business loans
Editor’s Take
Business owners can apply for traditional term loans and lines of credit, U.S. Small Business Administration (SBA) loans and even other products like credit cards and checking accounts through TD Bank.
TD Bank offers business loans from $10,000 to $1 million with terms ranging from one to five years. If you’d rather have access to a line of credit, it offers credit lines between $25,000 and $500,000. What’s more, TD Bank is an SBA-approved lender, meaning you can apply for an SBA through the bank. SBA loans typically have loan amounts of up to $5 million and terms up to 25 years.
The company also stands out for healthcare professionals and offers unique financing options for dentists, veterinarians, physicians and eye care professionals. For instance, it offers lending solutions up to $12 million with 100% practice financing plus working capital, in addition to partnership buy-ins and buy-outs, equipment purchase, and practice mergers and acquisitions.
Note: While online applications are available for loans up to $100,000, you must apply in person for loans over $100,000. TD Bank has branches in Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia and Washington D.C.
Pros & Cons
Offers term loans, lines of credit and SBA loans
Online application and mobile banking
Customized financing options for healthcare professionals
Must apply in person for loans over $100,000
Branches located in only 16 states
Details
Eligibility
Minimum credit score: 660
Time in business: One year
Minimum annual revenue: Does not disclose
Turnaround time
Although TD Bank offers same-day approval for its business loans and lines of credit, it may take up to two business days to receive your funds. SBA loans, on the other hand, may take several weeks to fund.
BEST FOR ESTABLISHED BUSINESSES
Funding Circle
Learn More
From participating partners via businessloans.com’s website.
Editor’s Take
Funding Circle has been a direct lender specializing in small business loans since 2010. It has helped 135,000 businesses in 700 industries and lent $20.2 billion globally. We chose Funding Circle because it provides fast, affordable loans with a simple application process and funding in as little as 48 hours. Prospective borrowers have three options: business term loan, line of credit or SBA loan.
Funding Circle term loans range from $25,000 to $500,000 with repayment terms from six months to five years. If you choose to apply for a business line of credit, you can access credit lines between $6,000 and $100,000. However, Funding Circle doesn’t specify its line of credit repayment terms. You can also apply for Funding Circle SBA loans, which range from $25,000 to $500,000 with terms up to 10 years.
There is one main drawback of Funding Circle: There’s a one-time origination fee on each loan ranging from 3.49% to 6.99% of the approved loan amount.
Pros & Cons
Loans from $25,000 to $500,000
Funding in as little as 48 hours
No minimum annual revenue requirement for most loans
One-time origination fee between 3.49% to 6.99% of the approved loan amount
Requires two years in business, so it’s not ideal for startups
Not available to Nevada businesses
Details
Eligibility
Minimum credit score: 660 for most loans; 650 for SBA loans
Time in business: Two years
Minimum revenue: None for most loans; $400,000 per year for SBA loans
Turnaround time
Depending on the loan type, you can receive your funds within two days. However, SBA loan funding may take up to two weeks.
Funding Circle provides long-term loans that are essential for businesses planning significant investments in growth or infrastructure. The clear terms and lower interest rates compared to short-term loans make this an excellent choice for businesses with a stable financial outlook and a strategic long-term development plan.
— Cache Merrill, founder and CTO, Zibtek
BEST FOR FUNDING OPTIONS
Biz2Credit
Loan amounts
Up to $1M+
Revenue-based financing. Varies depending on product and qualifications
Minimum Credit Score
650*
*See website for details
Up to $1M+
Revenue-based financing. Varies depending on product and qualifications
650*
*See website for details
Editor’s Take
Biz2Credit is a digital funding platform that provides three funding options—term, revenue-based financing and commercial real estate (CRE) loans—ranging from Up to $1M+. It only takes a few minutes to apply.
Biz2Credit can connect business owners with revenue-based financing Up to $2M+ and term loans Up to $1M+. Revenue-based financing payments are flexible based on business performance, with a right to reconcile against actual business receipts while term loans are repaid through weekly, bimonthly or monthly payments over the course of 12 to 36 months. Biz2Credit also offers interest-only CRE loans from Up to $2M+ with terms between 12 and 36 months; payments are due monthly.
In the event that Biz2Credit cannot provide a financial product, it may present third-party options to qualified prospective borrowers. However, Biz2Credit confirms that “in the vast majority of cases, [it] will make a financing decision without referral to any external party.”
Pros & Cons
Revenue-based financing has flexible qualification requirements
Can pre-qualify for submitting an application
Offers term loans with weekly or biweekly payments
Does not disclose financing costs
Does not disclose turnaround time
High annual revenue requirement
Details
Eligibility
Eligibility varies based on the financing option you choose.
Term loan
Minimum credit score: 650
Time in business: 18 months
Minimum revenue: $250,000 per year
Revenue-based financing
Minimum credit score: 575
Time in business: 6 months
Minimum revenue: $10,000 per year
Turnaround time
Biz2Credit does not disclose the turnaround time for its financing options.
Similar to Funding Circle, Biz2Credit emerges as a more balanced alternative and functions as a platform to offer a wide range of loans. Due to the more thorough underwriting process, the qualification requirements are more restrictive than other business lenders and funding may not be as quick.
— Abid Salahi, co-founder and CTO, FinlyWealth
Summary: Best Medical Business Loans
What Is a Medical Business Loan?
A medical business loan is a type of financing designed for healthcare professionals to provide funding for new and existing medical practices. You can use this loan to start a new practice, grow or acquire an existing one, purchase inventory or equipment or cover the other costs of operating your business.
The rates and terms on a medical practice loan vary by lender, but they typically offer loans up to $5 million with terms ranging from less than a year to 25 years. Interest rates range from around 5% to 30% or more.
Some medical business loans are unsecured while others are secured and require collateral. Secured loans may come in larger amounts and have better interest rates, but you risk losing your collateral if you fall behind on payments.
What Can You Use a Medical Business Loan for?
You can use a medical business loan for almost any purpose related to starting or growing your medical practice. Some common uses include:
Startup costs for a new practice. A medical business loan can provide the financing you need to cover costs like office space, furniture, supplies and hiring staff.
Merging with or acquiring another business. You might need capital to merge or take over another medical practice, and you can use a medical practice loan to finance that move.
Real estate purchases. You can use this financing to purchase commercial real estate for your practice.
Equipment and inventory. From exam tables to X-ray machines to ambulances, you might need financing to purchase equipment. Some lenders offer loans designed to purchase equipment, and these loans are typically secured by that equipment.
Advertising and promotions. You may need a loan to cover the costs of social media campaigns, community events, online ads or other marketing activities to get the word out and acquire new patients.
Payroll costs. You could use a loan for hiring and paying employees.
Business loan refinancing. You can take on a medical business loan to refinance existing debt, replacing the old loan with better rates and terms.
Types of Medical Business Loans
You can find medical practice financing from a variety of lenders, including banks, credit unions and online loan companies. Your main options include:
Bank loans. Banks such as Wells Fargo, Bank of America and others offer medical practice loans to qualifying healthcare professionals, including doctors, dentists, optometrists and veterinarians. Bank loans often offer large loan amounts and competitive terms, but you may need to meet lofty credit requirements and undergo a lengthy review process.
Online loans. Many online lenders offer medical business loans. Rates and terms vary by lender, but some may offer more flexible underwriting requirements and a faster funding process than banks.
SBA loans. Healthcare professionals can also apply for U.S. Small Business Administration (SBA) loans through partner banks or online lenders. Business owners can borrow an SBA 7(a) loan up to $5 million with terms up to 25 years for real estate loans and up to 10 years for equipment, inventory and working capital loans.
How To Apply for a Medical Business Loan
The application process for loans for medical practices varies by lender, but here are the steps you’ll likely need to take:
Determine your needs. Start your search by checking your credit report through AnnualCreditReport.com, where you can get free weekly credit reports until December 2023 If there are any errors, contact the credit bureaus to correct any mistakes. From there, calculate what costs your loan needs to cover and what you can afford to repay.
Find loans you qualify for. Look for lenders where you meet the qualification requirements and that offer necessary loan amounts.
Prequalify for a loan. If possible, prequalify for loans so you can get a sense of rates and offers you may qualify for without impacting your credit. These offers, however, are not guaranteed and may change when you submit your formal application..
Compare loan offers. Look for a loan with competitive rates and affordable monthly payments. Take note of whether the lender offers any other perks, like interest-only payment options or a dedicated project manager.
Fill out a loan application. Once you find the best loan for your situation, complete an application online or in person with a loan officer.
Provide any required documentation. This may include financial statements, business licenses, tax returns and a business plan. If the loan is secured, the lender may also require an appraisal of your collateral.
Receive your loan and begin repayment. You’ll likely receive your loan as a lump sum unless you apply for a line of credit. Review your loan agreement so you know how much you have to pay each month and when payments are due.
Pros and Cons of Medical Business Loans
Before taking on debt for your medical practice, it’s important to consider both the pros and cons of a medical business loan:
Pros
Can be used for a wide range of purposes. A medical business loan can provide the funds you need to start, acquire or grow your existing business and cover all the costs that go into it, including equipment, real estate, payroll and marketing.
Choice of repayment terms. Some loans offer terms of 10 years or more, allowing you to spread out your payments over time and select a monthly payment that works with your budget.
Could offer special perks. Some lenders offer certain borrower benefits with their medical business loan program, such as fee discounts, support programs, project managers or interest-only payment options.
Cons
Interest and possible fees. Medical business loans charge interest, meaning you could end up paying significantly more than you borrow. A shorter term length can limit the amount of interest you pay but requires larger monthly payments. Watch out for fees that could add to your costs of borrowing, too, such as administrative fees, origination fees or late fees.
May be difficult to qualify. Some lenders require good or excellent credit and a certain amount of revenue or time in business to qualify for a loan. Depending on your credit, you may find these criteria difficult to meet. It may also take a while to gather all the documentation and secure your loan.
May require collateral. Depending on your credit and what you’re using the loan for, you may need to pledge an asset to secure the loan. A secured loan isn’t necessarily bad, but you do risk losing your collateral if you can’t repay the loan.
Tips for Comparing Medical Business Loans
Before choosing a medical business loan, shop around and compare your options. Here are some key features to consider when selecting a loan:
Interest rate. Look for a loan with the lowest interest rate to reduce your costs of borrowing. Keep in mind that interest rate refers to interest alone, whereas annual percentage rate (APR) is a more inclusive term that consists of both interest and fees.
Fees. Consider any fees that could make your loan more expensive, such as an origination fee. Even if one loan has a lower interest rate than another, it might not be the more affordable choice if that lender tacks on extra fees.
Repayment terms. Consider how long you have to pay back the loan, as your term directly affects your monthly payments. A shorter term could save you money in interest overall but with higher monthly payments, while a longer term will give you lower monthly payments but with more interest over time.
Time to fund your loan. Make sure the lender’s loan approval and disbursement process works with your timeline, as some lenders take longer than others to process loan requests.
Borrower benefits. Find out if the lender offers any additional perks or protections that could make your borrowing experience better. Also, read over customer reviews to see what other borrowers have to say about the lender.
Alternatives to Medical Business Loans
Medical business loans aren’t your only option for starting or growing your medical practice. Here are a few alternative options to consider:
Small business loans: Not every lender specifically labels its business loan as a medical practice loan, but it could still be worth exploring general small business loans. These loans similarly let you borrow a lump sum of money and pay it back over a set period of time. You can find them from banks, credit unions and online lenders.
Equipment loans: Some lenders specifically offer equipment loans to purchase new equipment or inventory. These loans are typically secured by the equipment that you finance.
Business line of credit: Unlike a loan, a business line of credit offers a revolving form of financing that you can draw on and pay back as you go. It may be a better option for business owners with fluctuating or unpredictable costs that want to access financing as needed.
Merchant cash advance (MCA): MCAs are designed for businesses that need immediate funding. A lender may grant you a small loan in exchange for a percentage of your sales until the debt has been repaid. They usually have short repayment terms and can be approved and funded quickly.
Methodology
We reviewed 15 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the nine best lenders based on the weighting assigned to each category:
Loan cost. 35%
Loan details. 25%
Customer experience. 20%
Eligibility and accessibility. 10%
Application process. 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
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¹The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
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