(800) 949-0401 Apply NowMedical practices face a unique financing challenge: high equipment costs, insurance reimbursement delays of 30-90 days, significant student loan burdens for physician-owners, and practice acquisition costs that often exceed $500K. Traditional banks frequently misunderstand physician finances — underwriting against net income that's been reduced by practice expenses and equipment depreciation rather than the true economic strength of a medical practice. Crestmont Capital provides medical practice loans structured around physician economics: equipment financing for diagnostic tools, working capital for insurance reimbursement timing gaps, practice acquisition loans, and SBA programs with favorable terms for healthcare providers.
Physician-owned medical practices are among the most financially complex small businesses in the U.S. Several factors create persistent capital challenges that generic business lenders misunderstand:
According to the American Medical Association, physician practice ownership has declined as financial complexity increases. Crestmont Capital works with physician-owners to access the capital their practices need at terms that account for the healthcare revenue cycle. See also: medical equipment financing and SBA loans.
Equipment financing uses the purchased device as collateral — enabling lower rates and longer terms than unsecured alternatives. All diagnostic and treatment equipment qualifies: ultrasound systems, EKG machines, digital X-ray, examination tables, sterilization equipment, and specialty devices. Terms typically 3-7 years matched to equipment useful life.
Equipment costs: Digital X-ray $30K-$80K, diagnostic ultrasound $20K-$100K, EKG machine $2K-$15K, infusion pump systems $10K-$50K, autoclave sterilizers $3K-$15K, exam tables $2K-$8K each.
Buying an established medical practice is the fastest path to physician practice ownership — you acquire existing patients, staff, equipment, referral networks, and a proven revenue stream. Practice acquisition loans are sized to the purchase price: typically $200K-$1.5M depending on practice size, specialty, and geography. SBA 7(a) loans are the most common product for physician practice acquisitions due to favorable rates and terms.
Working capital loans bridge the insurance reimbursement timing gap — covering payroll, rent, supplies, and overhead while claims process. Short-term (6-18 months), sized to 1-3 months of practice operating expenses. Revenue-based underwriting evaluates annual collections rather than bank balances.
Converting commercial space to a compliant, fully-equipped medical office typically costs $150K-$500K: exam room build-out, plumbing for sinks in every room, electrical for medical equipment, waiting room, ADA compliance, and medical-grade HVAC. These are typically term loans of 5-7 years.
Electronic Health Record systems, practice management software, telehealth infrastructure, and billing systems represent $15K-$70K+ in investment. Equipment financing or working capital loans can fund these technology upgrades, which are essential for billing efficiency and reimbursement optimization.
Healthcare is a priority sector for SBA lending. SBA 7(a) loans provide the best rates and longest terms for qualified physicians — up to $5M at Prime + 2.75-4.75% with 10-year terms. Particularly valuable for practice acquisitions and major facility investments where a 4-8 week timeline works. See our SBA loans page.
A revolving business line of credit provides ongoing access to working capital — draw during high-receivables periods, repay as insurance payments clear, draw again. Lines of credit are ideal for managing the predictable timing gaps in medical billing cycles.
| Requirement | Typical Threshold | Notes |
|---|---|---|
| Personal Credit Score | 640+ preferred | Student loan burden considered separately from practice credit |
| Medical License | Active, current state license | Required for all medical practice financing |
| Time in Practice | 1+ year | SBA loans prefer 2+ years; equipment financing available sooner |
| Annual Collections | $300,000+ | Primary revenue metric; gross collections used, not net income |
| Business Bank Account | Active, 6+ months | Insurance EFT deposits acceptable as income documentation |
| Malpractice Insurance | Active coverage required | Standard lender requirement for medical practice financing |
Crestmont Capital understands physician practice economics. Apply in minutes — no hard credit pull.
Apply Now →| Product | Typical Rate | Term | Best Use |
|---|---|---|---|
| Medical Equipment Financing | 7%–22% APR | 3–7 years | Diagnostic and treatment equipment |
| Practice Acquisition (SBA) | Prime + 2.75–4.75% | Up to 10 years | Buying an established practice |
| Office Build-Out Loan | 8%–20% APR | 5–7 years | Exam rooms, HVAC, plumbing |
| Working Capital Loan | 15%–35% APR | 6–18 months | Insurance timing gaps, payroll |
| Business Line of Credit | 12%–30% APR | Revolving | Ongoing receivables management |
| EHR/Tech Financing | 8%–20% APR | 3–5 years | EHR systems, billing software |
| Specialty | Common Financing Needs | Best Products |
|---|---|---|
| Primary Care / Internal Medicine | EHR upgrade, exam equipment, working capital | Equipment financing, working capital, LOC |
| Cardiology | ECG systems, echo machines, stress test equipment | Equipment financing, SBA loan |
| Orthopedics | Imaging equipment, surgical tools, physical therapy equipment | Equipment financing, long-term loan |
| OB/GYN | Ultrasound systems, exam tables, office renovation | Equipment financing, working capital |
| Psychiatry / Mental Health | Office build-out, practice acquisition, technology | SBA loan, working capital |
| Urgent Care | Facility build-out, imaging, staffing | SBA loan, equipment financing, working capital |
| Concierge Medicine | Conversion costs, technology, marketing | Working capital, equipment financing |
| Multi-Location Group Practice | Expansion, additional locations, physician buy-ins | SBA loan, long-term loan, LOC |
No obligation. No hard credit pull. Apply today with Crestmont Capital.
Check My Options →A hospitalist physician wants to leave her employer and purchase an established internal medicine practice with 1,800 active patients. Purchase price: $520,000 (includes goodwill, patient list, equipment, and working capital). SBA 7(a) loan at 8.5% over 10 years = $6,450/month. The practice collects $980,000/year. Monthly revenue-to-payment multiple: 12.6x. The physician transitions from $285,000 salary to $520,000 in annual collections ownership within 18 months.
A dermatology practice with one location wants to open a second office in a growing suburb. Leasehold improvements: $180,000. Medical equipment for second site: $95,000. Initial working capital: $40,000. Total: $315,000. SBA loan at 7.75% over 10 years = $3,755/month. Second location reaches break-even at 8 months. Year-2 revenue contribution: $720,000.
A 3-physician internal medicine group has $380,000 in outstanding insurance claims — 90% of which will pay within 45 days. Overhead for the next 6 weeks: $145,000 (payroll, rent, utilities, supplies). Working capital loan of $145,000 at 22% APR over 6 months = $26,800/month payment. Insurance claims clear, loan repaid in full at month 3. Total interest cost: $8,700. The alternative — delaying physician payroll — creates a staffing crisis with far greater cost.
A cardiology practice needs to replace its aging echocardiography system with a modern ultrasound ($85,000) and add a new digital X-ray unit ($55,000). Total: $140,000. Equipment financing at 9% over 5 years = $2,900/month. The upgraded imaging capability allows the practice to bring $28,000/month in previously-referred imaging revenue in-house. Monthly revenue increase: 9.6x the monthly loan payment.
| Product | Approval Speed | Rate | Best For |
|---|---|---|---|
| Medical Equipment Financing | 3–7 days | 7%–22% APR | Diagnostic and treatment equipment |
| SBA Practice Acquisition | 4–8 weeks | Prime + 2.75–4.75% | Buying established practice |
| Working Capital Loan | 2–5 days | 15%–35% APR | Insurance timing gaps |
| Business Line of Credit | 5–10 days | 12%–30% APR | Ongoing receivables management |
| Conventional Bank Loan | 4–6 weeks | 7%–15% APR | Strong credit, established practice |
Join physicians across the U.S. who chose Crestmont Capital for practice financing.
Apply Today →Crestmont Capital brings physician-specific financial expertise to medical practice lending — understanding how to read medical practice financials, how insurance reimbursement timing affects cash flow, and how to structure loans that match the revenue cycle of healthcare delivery.
Related: medical equipment financing, SBA loans, healthcare business loans, dental practice loans.
640+ for most conventional products. SBA loans prefer 680+. Equipment financing is accessible at 600+ because the device provides collateral. Student loan debt is considered separately and does not automatically disqualify otherwise strong physician-owner borrowers.
Medical practice-focused lenders evaluate student loans in context. A physician-owner with $250K in student loans and a practice collecting $1.2M/year is fundamentally different from a consumer borrower with high debt relative to income. We evaluate practice profitability independently from personal student loan service.
Yes. SBA loans specifically support this transition — they're designed for physician practice acquisitions including first-time owner-operators. Strong personal credit (680+), verified practice cash flow, and a business plan addressing the transition are the key requirements.
Loan amounts range from $25,000 to $3,000,000+. Equipment loans are sized to device value. Working capital loans are sized to 2-4 months of practice expenses. SBA practice acquisition loans go up to $5 million. Amounts scale with practice collections volume and the specific capital purpose.
Medical practice lenders expect and account for receivables timing gaps. We look at your AR aging report — outstanding insurance claims by payer — to understand your actual cash flow pattern. A practice with $400K in 30-60 day insurance claims is far more creditworthy than its current bank balance suggests.
Core documents: 2 years of practice tax returns, 6-12 months of bank statements, active medical license copy, malpractice insurance certificate, accounts receivable aging report, and any purchase agreements or equipment quotes. SBA loans require additional documentation including a business plan for acquisitions.
Yes. SBA loans and equipment financing are accessible for startup medical practices. Requirements: active medical license, malpractice coverage, detailed business plan, strong personal credit (700+), and personal financial statement. The physician's employment history and specialty credentials serve as the "track record" in lieu of practice operating history.
Yes. Telehealth platforms, digital health infrastructure, remote monitoring equipment, and practice management technology all qualify for equipment financing or working capital loans. Technology investments that improve billing efficiency often pay for themselves through improved reimbursement rates.
Working capital and equipment financing: 3-7 business days. SBA practice acquisition loans: 4-8 weeks. Line of credit: 5-10 days. Fast working capital for urgent needs: 24-72 hours. For planned investments, start the application 4-6 weeks before you need funding.
SBA 7(a) loans are the gold standard for physician practice acquisitions — up to $5M, 10-year terms, and rates at Prime + 2.75-4.75%. The timeline is 4-8 weeks. For acquisitions where speed matters more than rate, conventional practice acquisition loans close in 2-3 weeks at higher rates. Most acquisitions use SBA given the significant rate advantage over a 10-year term.
Yes. Converting from insurance-based to direct primary care or concierge medicine requires capital for: technology infrastructure, patient communication and marketing, transition period working capital while the patient panel converts, and potentially new equipment. Working capital loans and equipment financing are the primary products for this transition.
Yes. We finance primary care, internal medicine, cardiology, orthopedics, dermatology, OB/GYN, psychiatry, urgent care, physical therapy, and all other physician specialties. Each specialty has different equipment and cash flow patterns that we understand and account for in our underwriting.
Fast decisions. Physician practice expertise. Apply now with Crestmont Capital.
Get Funded Now →Disclaimer: The information provided on this page is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your medical practice financing options, contact our team directly.
