How to Finance a Medical or Dental Practice
Financing a medical or dental practice is a different experience than most commercial loans. Lenders have developed specialized programs for licensed healthcare professionals, programs that often offer 100% financing, simplified underwriting, and terms that wouldn't be available to most borrowers.
Here's what's available and how to access it.
Why Healthcare Professionals Get Special Treatment
Lenders view licensed medical professionals as exceptionally low credit risk. The combination of high income potential, professional licensing requirements that discourage business failure, and strong historic repayment rates allows lenders to offer programs that would be unavailable to other borrowers, including full financing without down payments.
Eligible Professions
- Medical doctors (MD, DO)
- Dentists (DDS, DMD)
- Veterinarians (DVM, VMD)
- Optometrists
- Pharmacists (some lenders)
- Podiatrists and chiropractors (some lenders)
What Can Be Financed
- Practice acquisition, buying an existing practice
- Startup, launching a new practice from scratch
- Buildout, financing a new office or suite
- Equipment, specialized medical or dental equipment
- Real estate, purchasing the building you practice from
- Partnership buyout, buying out a partner's equity
100% Financing: How It Works
Many specialty lenders offer full financing for practice acquisitions with no down payment required. This differs significantly from conventional business acquisition loans requiring 10 to 30% down. The zero-down structure works because the practice's cash flow combined with professional credentials provides lender confidence.
SBA vs Specialty Practice Loans
SBA 7(a) loans can also be used for practice financing, sometimes offering better rates than specialty lenders, particularly for larger transactions. Specialty practice loans typically move faster with less paperwork but may carry slightly higher rates.
What Lenders Look For
- Active professional license in good standing
- 700+ credit score (preferred, some lenders go lower)
- Clean personal financial history, no prior bankruptcies or judgments
- Practice financials or proforma for startups
- Evidence of clinical experience
Educational content only, not advice. KQT Advisors, LLC is a commercial loan broker; we are not a lender, attorney, accountant, financial advisor, or fiduciary. We do not originate loans or make lending decisions. The information in this article is provided strictly for general informational and educational purposes and reflects our understanding at the time of writing. It is not, and must not be construed as, financial, tax, legal, accounting, investment, or any other professional advice, and creates no advisor-client relationship. Loan programs, rates, terms, eligibility requirements, fees, and approval criteria are set by individual lenders, the SBA, and other parties and are subject to change at any time without notice. Examples are illustrative only and not guarantees of outcome. Nothing here is a commitment to lend, an offer of credit, or a representation that any specific structure will be available to or appropriate for any borrower. Always consult your own qualified financial, tax, and legal advisors before acting on any information in this article. To the maximum extent permitted by law, KQT Advisors, LLC and its principals, employees, agents, and affiliates disclaim all liability for any direct, indirect, consequential, or incidental loss or damage arising out of any use of, reliance on, or inability to use the information in this article.