Running a private medical practice comes with both the privilege of patient care and the pressure of business operations. From advanced medical equipment to regulatory compliance and staffing, the financial responsibilities can be daunting. Fortunately, there are several financing options for private medical practices designed to support your growth, stability, and long-term success.
Whether you're starting a clinic, expanding services, or improving technology, this guide will walk you through the best funding options to support your medical practice's financial health.
Even highly profitable clinics encounter moments where outside capital is necessary. Here are the most common reasons physicians pursue funding:
Opening a new practice or second location
Purchasing or leasing medical equipment and diagnostic tools
Hiring new staff or specialists
Covering payroll and operating costs during lean periods
Implementing electronic health record (EHR) systems
Renovating or upgrading your office
Acquiring an existing practice
Whether your goal is expansion, efficiency, or patient satisfaction, financing offers the flexibility to get there without disrupting cash flow.
The Small Business Administration (SBA) offers the popular 7(a) loan for healthcare businesses.
Loan amounts up to $5 million
Low interest rates and long repayment terms (up to 25 years for real estate)
Use funds for almost any business need, including equipment, staffing, and buildouts
Backed by the government, making lenders more willing to approve
👉 Explore SBA loans
Best for: Established practices needing comprehensive funding for multiple purposes.
Medical devices—from X-ray machines to ultrasound systems—require major upfront investment. Equipment financing makes this manageable.
Borrow 80–100% of the equipment’s value
Equipment acts as collateral
Repayment terms: 2–7 years
Can include installation, training, and software in the total cost
Best for: Purchasing diagnostic or treatment equipment without draining your capital.
These short-term loans are useful for managing cash flow or covering short-term operational costs.
Fast approval (often in 1–3 days)
Loan amounts: $5,000 to $500,000
Repayment term: 6–24 months
May have higher interest rates than SBA loans
Best for: Meeting day-to-day financial needs or bridging seasonal gaps in revenue.
This flexible funding solution allows you to draw funds as needed and only pay interest on what you use.
Revolving access to funds
Useful for ongoing costs like payroll, software, or supplies
Limits can range from $10,000 to $250,000+
Great for clinics with seasonal variations in cash flow
Best for: On-demand funding without the pressure of a lump-sum loan.
These are lump-sum loans with a fixed repayment schedule, available from banks or fintech lenders.
Typically used for renovations, expansions, or large one-time purchases
Terms vary from 1–10 years
Requires good credit and proof of steady revenue
Best for: Predictable long-term investments with a clear ROI.
Some lenders specialize in funding for licensed professionals.
Designed specifically for MDs, DOs, dentists, and specialists
May offer reduced interest rates or no-collateral options
Can be used for practice acquisition, equipment, or relocation
Best for: New or expanding physicians with excellent credentials but limited business credit history.
| Expense | Estimated Cost |
|---|---|
| Diagnostic equipment (X-ray, EKG) | $20,000 – $200,000 |
| EHR software & hardware | $5,000 – $50,000 |
| Clinic build-out or renovation | $25,000 – $250,000 |
| Marketing & patient acquisition | $3,000 – $25,000 |
| Payroll for staff and specialists | Varies |
| Medical supplies and inventory | $1,000 – $15,000 |
Identify your exact funding needs and timeline
Review your credit profile (business and/or personal)
Prepare a detailed business plan and financial projections
Compare loan options (rates, terms, approval timelines)
Gather required documents: tax returns, licenses, revenue statements
Apply to multiple lenders to compare offers
Use funds with a strategic ROI plan—track performance and adjust as needed
A dermatology clinic in Chicago secured a $150,000 SBA 7(a) loan to expand into a second location, purchase a digital dermatoscope, and hire two support staff. Within eight months, the clinic increased patient volume by 40%, reduced appointment backlogs, and added a profitable cosmetic service line.
Borrowing too much or too little—define your funding goals clearly
Skipping ROI projections—only invest in what supports long-term profitability
Applying without necessary documentation—this delays approvals
Ignoring your credit profile—creditworthiness directly affects loan terms
Not exploring specialty lenders—physician-focused lenders offer better terms
Small Business Administration (SBA)
As a healthcare provider, your mission is to heal—but to do that effectively, your practice must also be financially sound. Whether you’re upgrading technology, launching a new facility, or hiring staff to meet demand, the right financing can unlock new levels of efficiency, service, and growth.
Secure smart funding today—and invest in the future of your practice and your patients.