- Physician practice loans are designed specifically for doctors, dentists and other licensed providers.
- You don’t need to be an established business to qualify; many lenders work with early-career physicians or recent graduates, even if you haven’t owned a practice before.
- Loan terms vary widely by lender and use case; know what you’re borrowing for, and match the loan structure to your actual needs.
- There are more options than just physician loans; SBA loans, equipment financing and lines of credit all serve specific purposes depending on your stage, goals and cash flow.
What is a physician practice loan?
A physician practice loan is a form of business financing for licensed medical professionals and healthcare-related businesses that deliver direct patient care or operate within regulated clinical settings, who are looking to start, buy or grow a private practice.
These loans can help cover a variety of costs, such as acquiring real estate, purchasing equipment, hiring staff or refinancing earlier debt. Some physicians use them to launch their first clinic. Others use them to buy into an existing partnership or expand into a second location.
Unlike general business loans, the terms of these products are structured around the needs of medical professionals. That often means higher borrowing limits, more flexible repayment terms and lenders that understand the cash flow challenges that come with running a healthcare practice.
- Start a new private practice
- Buy into an existing partnership
- Purchase medical equipment or EMR software
- Expand to a new location
- Refinance existing practice debt
Key features:
- Higher borrowing limits
- Flexible underwriting (based on projected income)
- Often require MD/DO/DDS/DVM credentials
- May offer deferred payments or interest-only periods
How much can I borrow for a physician practice loan?
Loan amounts vary significantly depending on the type of lender, your use of funds and where you are in your career. In our research, we’ve seen physician practice loans range from as low as $5000 to as high as $1 billion.
Overview of your loan
Total interest / fees payable:
What affects how much you can borrow:
- Use of funds
Buying real estate or acquiring a practice often qualifies for higher loan amounts than equipment purchases or working capital. - Experience and credentials
Early-career physicians can still qualify, but more established professionals may have access to larger amounts with more favorable terms. - Business plan and revenue projections
Lenders typically want to see a realistic plan that includes startup costs, operating expenses and projected revenue. - Personal credit and financial profile
A strong credit score and manageable personal debt can increase the total you’re approved for, though some lenders weigh credentials more heavily than traditional business history. - Loan type
SBA-backed loans, for example, offer up to $5 million, while private healthcare lenders may have different caps based on specialty, geography or practice structure.
Tip: Don’t assume your loan amount will be based on a strict formula. For physicians, lenders often underwrite based on potential, and not just current financials.
Types of physician practice loans
Physician practice loans come in a variety of forms, each tailored to different stages of a medical career or specific business needs. Here are the most common types:
| Practice acquisition loan | Buy an existing medical practice, including assets and goodwill | Doctors taking over an established clinic or solo practice |
| Startup loan | Launch a new practice from scratch; covers leasing, staffing, marketing | New physicians or residents starting their own practice |
| Equipment financing | Purchase or upgrade medical equipment; equipment acts as collateral | Doctors needing to invest in or replace clinical tools |
| Working capital loan | Cover operational costs like payroll, rent and supplies | Practices managing cash flow or seasonal income dips |
| Commercial real estate loan | Buy or refinance office space; long-term property financing | Physicians acquiring or refinancing their practice’s location |
| Refinancing / debt consolidation | Lower interest or combine multiple debts into one manageable loan | Practices looking to reduce costs or streamline payments |
| Business line of credit | Flexible, revolving credit for ongoing or unexpected expenses | Doctors who want access to funds as needed |
Compare loan providers for physicians
Not all lenders offer the same terms or understand the needs of medical professionals. Here are physician-friendly loan providers that offer competitive terms and industry-specific support.
Compare more business lenders vetted by Finder experts
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- Loan amount
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Physician loans vs. traditional business loans
Most lenders treat medical professionals as a category of their own, and for good reason. Physician loans are structured differently from standard small business loans. The terms reflect the earning potential, operating costs and financial patterns that come with running a medical practice.
- Specialized underwriting
Lenders who focus on medical loans understand how insurance reimbursement delays and long ramp-up periods affect cash flow. That familiarity often leads to faster, more flexible approvals. - Higher borrowing limits
Physician practices tend to generate strong and predictable revenue over time. As a result, lenders are typically more comfortable approving larger loan amounts than they would for most small businesses. - Flexible repayment structures
Interest-only periods and deferred payments are more common, especially for doctors who are opening a new clinic or investing heavily up front. - No business history required
Many lenders work with new graduates or early-career physicians. In many cases, your credentials carry more weight than your time in business.
Expert insight: How I used bank and SBA loans to fund my business
“In 2015, I founded Modern Family Medicine with a 6.5% loan from Bank of America; the only program at the time tailored for independent physicians. Although I had planned a direct-primary-care membership model, the bank required me to accept insurance. I handled every aspect myself—credentialing, IT setup, forms and expense tracking—while the bank’s program simply monitored my costs. I also secured an SBA loan with zero down to purchase and build out my clinic. The process was straightforward, and in hindsight, hiring an attorney to review the paperwork wasn’t necessary. “
Elissa B. Gartenberg, D.O
Board certified family physician
How to choose the right physician business loan
No two practices or physicians have the same financing needs. The right loan depends on where you are in your career, what you’re trying to build and how much flexibility you need along the way.
Questions worth asking before you apply:
- What are you financing?
A real estate purchase comes with different loan structures than buying equipment, hiring staff or covering working capital. - How quickly do you need the funds?
Some lenders offer fast approvals. Others, such as SBA lenders, may take longer but come with more favorable terms. - Are you starting from scratch or acquiring an existing practice?
If you’re inheriting a patient base and revenue stream, you may qualify for larger amounts or more flexible terms. - Do you need a grace period or an interest-only repayment option?
This can be especially helpful if you’re still building out the practice or ramping up patient volume. - What’s your comfort level with personal guarantees?
Some loans require you to personally back the full amount. Others may offer partial guarantees or different collateral structures. - Can I get a loan before my practice is open?
Yes. Many lenders approve loans based on future income projections and existing residency/income offers. - What credit score do I need?
Most lenders look for a 680+ credit score, but strong business plans and credentials can help offset borderline scores. - Are SBA loans a good fit?
Yes, especially SBA 7(a) loans, which offer low rates and long repayment terms. Ideal for acquisitions or expansions.
Tip: Early-career doctors should look for interest-only periods and lenders offering startup guidance — not just capital.
Who qualifies for a physician business loan?
While most lenders target MDs and DOs, many also work with a broader set of licensed providers and practice types.
Commonly eligible professionals include:
- Medical doctors (MD) and doctors of osteopathy (DO)
- Dentists (DDS, DMD)
- Optometrists (OD)
- Podiatrists (DPM)
- Chiropractors (DC)
- Veterinarians (DVM)
- Nurse practitioners (NP) and physician assistants (PA), depending on the lender
- Mental health providers, including psychologists (PhD, PsyD) and licensed therapists
Practice types that often qualify:
- Solo or group medical practices
- Dental offices and orthodontic clinics
- Vision care clinics and optical centers
- Urgent care centers and outpatient facilities
- Specialty practices such as dermatology, pediatrics or internal medicine
- Veterinary clinics
- Behavioral health and mental wellness practices
- Multi-provider partnerships or buy-in arrangements
Lenders typically require that the borrower holds an active license, has relevant credentials and operates or plans to operate in a clinical capacity. If you’re unsure whether your specific situation qualifies, it’s worth speaking directly with lenders that specialize in healthcare financing.
Expert insight: My application experience with Wells Fargo
“I’m a dentist who took out loans to open my practice in 2021. At the time, my only real options were Bank of America and Wells Fargo, since most other lenders required applicants to be at least two to three years out of school, and I was only one year into my career.
I applied to both. Due to lingering uncertainty from the Covid disruptions in 2020, Bank of America paused new loan approvals after I had already submitted my application. Fortunately, Wells Fargo approved me.
The application process itself was pretty straightforward. The banks didn’t focus much on my personal financials, so I found what mattered most was my business plan. The hardest part was getting connected with the right people in the healthcare lending departments. Their terms and requirements were much more flexible compared to traditional small business lending, but it took some persistence to find the right contact.”
Calvin Eastwood, DDS
Business owner at Summerbrook Dental & Implants
Who might not qualify
Not every healthcare-related business or individual meets the criteria for a physician business loan. Most lenders are focused on clinical providers and practice-level ownership, which means certain applicants may be excluded.
Common disqualifiers include:
- Unlicensed individuals
If you don’t hold an active medical or clinical license, you’re unlikely to qualify even if you’re managing or investing in a healthcare business. - Purely administrative or non-clinical businesses
Medical billing firms, consulting agencies and tech startups serving the healthcare sector usually fall outside the scope of these loan programs. - Non-majority ownership
Some lenders require that a licensed provider hold majority ownership in the business being financed. - Personal credit or financial issues
Most lenders look for a credit score above 680 and expect to see clean financials. Major red flags, such as recent bankruptcies or outstanding tax liens, may limit your options. - No business plan or use-of-funds clarity
If you can’t clearly explain what the loan will be used for and how it supports a viable practice, you’re less likely to get approved — especially with lenders that offer larger loan amounts.
If you’re outside the typical profile but still working in a clinical or health-related field, it may still be worth reaching out to a healthcare-focused lender. Some offer alternative programs or can point you toward options that fit better.
Alternative financing options for medical practices
Physician practice loans are a popular choice, but they’re not the only way to finance a clinic or healthcare business. Depending on your needs, timeline and credit profile, one of these alternatives may offer a better fit.
- SBA loans
The SBA 7(a) program is commonly used by physicians acquiring an existing practice or financing real estate. These loans offer competitive rates and long repayment terms, though the application process is more involved and may take several weeks. - Equipment financing
For doctors purchasing high-cost medical equipment or diagnostic tools, equipment financing allows you to borrow against the value of the equipment itself. This is often faster to secure and may not require a full personal guarantee. - Business lines of credit
If you need ongoing access to funds for working capital, staffing or marketing; a revolving line of credit may be more flexible than a traditional term loan. These are typically used for short-term or variable costs. - Revenue-based financing
Some lenders offer financing tied to projected revenue. This model is less common in healthcare but may appeal to practices with predictable insurance reimbursements or recurring patient volume. - Commercial real estate loans
For physicians planning to buy or build their own facility, a commercial mortgage may be the best route. These loans are separate from practice loans and often have different underwriting criteria. - Personal loans or HELOCs
In rare cases, early-career doctors may use personal credit or home equity to fund a small startup clinic. This comes with added personal risk and is usually a last resort when business credit is limited.
Expert insight: How I self-funded my private practice
“I own a 5 star private practice called Dadjoo Orthodontics in Porter Ranch, California. For two years, I worked six days a week to save every dollar, living like a resident while consulting for nine different practices across California. I drove my little white Corolla from Fresno to Bakersfield to Santa Barbara and invested my savings in I-Bonds and T-Bills to earn more interest than banks could offer.
When I finally found the perfect practice for sale, I paid in full by check. Truly one of the best days of my life. Since then, I’ve focused on growing the practice and delivering the most advanced orthodontic treatments with exceptional service to families in our community. “
Dr. Shaun Dadjoo
Board Certified Orthodontist and Dentofacial Orthopedist, Diplomate of the American Board of Orthodontics
Next steps after financing
Securing a loan is just one part of getting your practice off the ground. Once funding is in place, there are key operational and compliance steps you’ll need to work through to ensure a smooth launch and long-term sustainability.
Credentialing and insurance enrollment
Getting set up with private insurers, Medicare and Medicaid takes time and affects how soon you can start billing.
EHR and billing systems
Choose tools that match your specialty, workflow and compliance requirements. Switching later is expensive and disruptive.
HIPAA and regulatory compliance
From staff training to data storage, make sure your practice is aligned with state and federal privacy laws from day one.
Staffing and hiring
Decide early which roles you’ll fill immediately and which can be phased in as patient volume grows.
Marketing and patient acquisition
Build visibility through local listings, referring networks and a basic online presence. This matters more than most first-time owners expect.
How common are new healthcare businesses?
Starting a medical practice isn’t uncommon. In fact, it’s part of a broader trend of healthcare entrepreneurship across the US.
According to data from the Federal Reserve Bank of St. Louis, an average of 2,864 new healthcare and social assistance businesses are formed each month. That’s more than 34,000 new healthcare entities launched each year, including solo practices, outpatient clinics, specialty care providers and more.
This steady formation rate highlights that lenders are familiar with the financial profile of new healthcare businesses. Whether you’re a first-time practice owner or acquiring your second location, you’re stepping into a well-understood segment of the business lending market.
Bottom line
Physician practice loans can unlock the path to independent practice — but the best option depends on your goals, specialty and stage of your career. The more prepared and informed you are, the better your chances of securing competitive terms with a lender that understands your unique needs as a medical professional.
