A Physician’s Guide To Medical Practice Financing

Written by Banks Editorial Team
4 min. read
Written by Banks Editorial Team
4 min. read

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Are you looking to open your own medical practice? There are several reasons why doctors, dentists, optometrists, and other medical professionals want to start their private practice. For one, it gives you flexibility in terms of how much or little you work. Plus, it offers the opportunity to increase your earning potential.

However, opening a medical practice requires considerable capital, which can be difficult to raise, especially if you’re still struggling with student loans. So whether you’re starting your new practice or looking to expand, medical practice loans can be a great financial resource to meet your practice needs. 

Understanding what medical practice financing is, what you can use the funds for and where to get a practice loan is essential for every healthcare professional. 

Check Medical Practice Financing Options

Get funding in as little as 24 hours. See your prequalified offers by filling out a quick online form. No industry excluded. SBA financing is available.

What is a Practice Finance Loan?

A practice loan is a specific business loan that medical professionals can tap into to start or grow their practice business. Depending on the type of small business loan you get, you can use the funds for various purposes, including acquisition, starting a new medical office, or expanding your existing practice. The amount of medical practice loan you can borrow vary greatly based on what you plan to use and your creditworthiness.

Medical practice business loans are essentially created for physicians who are practicing or licensed and looking to open a new practice. However, some lenders are willing to extend practice loans to healthcare professionals who are still training and looking to start a medical office.

What You Can Use the Funds of Medical Practice Financing For

You can use medical practice financing for a variety of purposes, such as purchasing equipment, covering operation costs, startup costs, or acquiring a practice. Most medical professionals borrow these funds for one or more of the following purposes.

Start a New Practice or Expand an Existing One

Opening a new medical practice requires capital to get it off the ground. When starting out, some of the major expenses include medical office space, new equipment, furniture, hiring staff, and advertising. A practice loan can help cover some of these startup costs and operational costs. But if you’re already running a practice but are looking to expand it, medical practice financing will help you turn your dream into a reality.

Make Renovations or Repairs to Your Medical Practice

Whether you just acquired a new practice or you’ve been running one for years, you’ll probably need to do renovations or repairs at one point. Depending on the type of renovation you need and the scope of work, medical business loans come in handy to give your office a new look.

Purchase Medical Equipment

Medical equipment is arguably one of the major expenses linked to opening a medical office. Whether you’re looking to purchase small items like computer software, and exam tables to larger items like an x-ray machine or scanners, you’ll likely need equipment financing. A medical practice loan will help you foot the bill for expensive equipment.

Check Medical Practice Financing Options

Get funding in as little as 24 hours. See your prequalified offers by filling out a quick online form. No industry excluded. SBA financing is available.

Hire New Employees

If your medical business is growing at a fast rate, you may want to hire more staff to meet your growing demand. However, onboarding new employees mean an extra cost. A medical practice loan can assist you in covering the cost of hiring more medical professionals and office employees.

Buy an Ambulatory Vehicle

An ambulatory vehicle is an added perk for a medical practice, especially if you perform surgeries. Purchasing an ambulatory car comes at a huge cost, and you may need quick access to cash. With a medical practice loan, you can purchase the vehicle.

If you’re opening a new practice or expanding your operations, you’ll need to market and advertise your brand to acquire new patients. Investing in social media campaigns, ads, hosting events, and even search engine optimization to advertise your services can be pretty expensive. With medical practice financing, you can advertise to get new customers.

Who is Medical Practice Financing For?

Medical practice financing can be used by a variety of professionals in the healthcare industry, including:

  • Physicians: Physicians aim to provide the best care they can to patients. To do this, they’ll need a complete medical office with the best equipment, enough employees to meet their growing demand, and of course, offer the best services. Physician practice loans can help you achieve this.
  • Massage Therapists: The work of a massage therapist is to treat patients using touch to relieve pain, heal injuries, increase relaxation, and help in the general wellness of clients. Running such a practice requires a great deal of capital because you’ll need to rent or lease a space, hire massage therapists, and purchase equipment like a massage table.
  • Plastic Surgeons: These are healthcare professionals who perform reconstructive procedures to restore injured body parts caused by accidents or major illnesses such as cancer. Starting a plastic surgery practice can be very expensive as it includes the purchase of many types of equipment, such as procedure tables, patient monitors, anesthesia machines, and surgical instruments. Considering the startup cost, you’ll need to secure office space and purchase equipment and supplies to get it off the ground.
  • Psychologists are trained medical specialists who study people’s mental health by observing and interpreting how they relate to their surroundings. Psychologists looking to start their own practice require a dedicated space in a quiet environment, cover operating expenses, and market their services to get clients.
  • Pediatricians: The work of pediatricians is to diagnose, treat and monitor common ailments of infants, children, adolescents, and young adults. To open a pediatric practice, you need to procure space, hire pediatricians, and purchase the necessary medical equipment.
  • Dermatologists: These are professionals who specialize in conditions involving the skin, hair, and nails. Medical practice loans can be a great resource for dermatologists looking to kick-start their practice business.

Where Can You Get a Medical Practice Loan?

You can get a medical practice loan through banks and online lenders. If you opt to apply for funding through a bank, the loan application and approval process might take longer than working with an online lender. If you want to get approved in less than 24 hours for medical practice financing, consider working with Biz2Credit

Some business financing options offered by Biz2Credit include working capital, term loan, and commercial real estate loan. Are you ready to take out medical practice loan? You can visit Biz2Credit’s website to see if you qualify. Your funding request can be approved in less than 24 hours.

Biz2Credit

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