Business funding for medical and dental practices
Reviewed by Turan Zeynal, Managing Partner, Outset Funding Partners ·
Medical and dental practices — from solo providers to multi-location groups — can access $25k–$1M+ in equipment financing, working capital, and practice-acquisition loans. Because insurance receivables and stable patient revenue de-risk the profile, medical practices typically get the best terms in the market, with SBA and specialty medical lenders competing on rate.
Quick facts
- Typical amount
- $25k – $5M
- Equipment APR
- 6% – 15%
- Working capital APR
- 8% – 25% (LOC)
- Practice acquisition
- SBA 7(a), up to $5M
- Min credit
- 650+ for best pricing
- Speed
- 24–72 hours (WC) / 30–90 days (SBA)
The 60-second answer
Healthcare is one of the cleanest credit profiles in small business. Insurance pays consistently, patient volume is predictable, and equipment holds resale value. Because of that, medical practices see rate offers that most other industries don't — SBA 7(a) and specialty medical lenders actively compete for practice deals.
The right product depends on the goal: equipment financing for chairs, lasers, imaging, or lab gear; working capital or a line of credit for insurance-receivable gaps and slow months; SBA 7(a) for a practice acquisition or major expansion.
Pros and cons
- ✓Best pricing in small business — medical is a preferred credit profile
- ✓SBA 7(a) practice acquisition loans up to $5M with 10-year terms
- ✓Equipment financing for chairs, CBCT, lasers, ultrasound, and lab equipment
- ✓Working capital for insurance-lag periods and slow months
- ✓Can layer products — equipment plus LOC plus SBA — without conflict
- ×Best terms require documentation — tax returns, P&Ls, and A/R aging
- ×SBA is slow (60–90 days) — plan ahead of major purchases
- ×Personal guarantee typically required on SBA and larger equipment deals
Who qualifies
- •MDs, DOs, DDS/DMD, DVM, chiropractors, PT/OT, dermatology, med-spa, urgent care
- •Solo practices to multi-location groups
- •US-based with active state licensure
- •650+ FICO for best pricing (some options at 600+)
- •12+ months in practice (existing practice acquisitions can qualify Day 1 with SBA)
Frequently asked questions
Can a new practice under 1 year old get funded?
Yes. Startup dental and medical practices can access SBA 7(a) practice loans on Day 1 if the practitioner has strong personal credit and clinical experience. Working capital is available once you have 6+ months of revenue history.
How much can I borrow to acquire a practice?
SBA 7(a) practice acquisition loans go up to $5M, with 10-year terms and down payments as low as 10%. Bank practice-loan programs can go higher for the right buyer.
Can I finance a CBCT or full imaging suite?
Yes. Imaging equipment ($75k–$300k+) is a common equipment-financing use case. Terms of 5–7 years at 6–12% APR are typical for qualified practices.
Do you work with accepting-insurance and cash-pay practices?
Both. Insurance-heavy practices show underwriters clean receivables. Cash-pay practices (med-spa, cosmetic, chiropractic wellness) look more like retail from an underwriting standpoint but still qualify easily with $10k+/month in revenue.
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