• Link to Facebook
  • Link to Youtube
  • Link to X
  • Link to LinkedIn
  • Link to Flickr
  • Link to Slideshare
  • Link to Rss this site
  • Donate
  • Subscribe
SBDC Tampa Bay
  • Home
  • Solutions
    • Certifications
      • Business Certifications
      • Minority-Owned Business
      • Woman-Owned Business
      • Veteran-Owned Business
    • Consulting & Training
      • Training
      • Training Calendar
      • Consulting
      • Schedule a Consultant
      • Consultación
    • Business Solutions
      • Growth Acceleration
      • Government Contracting
      • International Trade
      • Starting Your Business
      • Disaster Preparedness
      • Student Teams
      • Financing Your Business
  • Resources
    • Business Resources
    • Frequently Asked Questions
  • Insights
    • Blog
    • Media Inquiries
  • About Us
    • Mission / Vision
    • Consultants
    • Meet the Staff
    • Meet Our Clients
    • Partners / Affiliates
  • Training
    • Training Calendar
    • On-Demand Training
  • Results
    • Success Stories
    • Economic Impact
  • Locations
    • Tampa
    • Hernando County
    • Highlands, Hardee, DeSoto
    • Hillsborough
    • Manatee
    • Pasco County
    • Pinellas County
    • Polk County
    • Sarasota
  • Contact
  • Request a Consultant
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Archive for category: Healthcare

A Comprehensive Guide to Medical Practice Loans for Physicians: Part One

Blog, Healthcare

by Bradley Mix | January 30, 2024

After years of dedication and hard work in medical school and residency, starting and running your own medical practice may be the next step in your career. However, like any small business owner, you need to obtain the necessary capital to start your medical practice. Medical practice loans offer favorable loan terms to physicians looking to start or expand their medical practice. In this guide, we will explore medical practice loans, their uses, and the various options available to physicians. Additionally, we will highlight some reputable banks offering medical practice loans in the second part of this series.

Medical Practice Business Loans

Medical practice loans are specifically designed to provide doctors and medical specialists with the necessary funds to start or expand their practices. These loans cater to a range of medical professionals, from general practitioners and family physicians to specialists such as dermatologists, pediatricians, plastic surgeons, podiatrists, as well as veterinarians. Most medical practice loans will provide 100% financing, with the exception of real estate which requires a down payment, and a lower interest rate than other commercial loans. These loans can be obtained from traditional banks, as well as online lenders, often providing full financing to establish a new practice.

Uses For Medical Practice Loans

Medical practice loans can be utilized for a variety of purposes. Here are some common loan uses:

  1. Starting a private practice: Starting a medical practice from scratch entails various expenses, such as hiring and training staff, outfitting offices with essential equipment and supplies, conducting marketing and advertising initiatives, making tenant improvements for office space, and securing working capital. It’s crucial to be aware that if the majority of your patients have medical insurance, you will require a substantial initial cash reserve to address expenses until you receive patient billings from medical insurance companies. This billing collection process typically takes 30 to 60 days.
  2. Acquiring an existing medical practice: Rather than starting a practice from scratch, some physicians may have the opportunity to acquire an existing practice from a retiring physician. Medical practice loans can help finance the purchase of an established medical practice, facilitating a smoother transition.
  3. Commercial real estate: Purchasing a building is popular among medical professionals as an investment to complement their medical practice. These loans can cover the costs associated with building acquisition, renovations, or new ground-up construction.
  • Equipment: Medical practices often require a significant expenditure to purchase state of the art equipment. Medical practice loans allow physicians to purchase or upgrade equipment as needed, whether it’s basic items like exam tables and computer software or specialized equipment such as dental x-ray machines or optometry retinal scanners.
  • Business line of credit: A business line of credit provides a revolving credit line that can be drawn upon as needed, similar to a business credit card. A line of credit provides the practice with funds to effectively manage cash flow.
  • Small Business Administration (SBA) Loans: Although SBA loans are not considered a medical practice loan, they offer a viable financing option to medical professionals. These loans are made by commercial banks with a loan guarantee provided by the U.S. Small Business Administration (SBA). Banks will sometimes offer these loans to less experienced medical professionals or borrowers with weaker credit.

How To Apply for Medical Practice Financing

When applying for medical practice financing, it’s crucial to be well-prepared. Follow these steps to increase your chances of a successful application:

  1. Check your credit score: Most banks making commercial loans use Experian Credit Reporting agency and require a FICO score of 680 or higher.
  2. Have your business plan and financial projections ready: If you are starting a new practice or acquiring an existing practice, the lender will require a written business plan and financial projections.
  3. Provide financial documents: For an existing practice, you will need to provide the lender with copies of both your business and personal tax returns, Profit & Loss Statements, Balance Sheet, and Aging of Accounts Receivable.
  4. Collateral: The bank will place a blanket UCC filing on business assets. The business assets including medical equipment will serve as collateral. Lenders will also require a personal guarantee, as with other small business loans, because medical practice loans are often based on the physician’s experience and personal financial strength.

When ready to start or expand your medical practice, make sure to do your due diligence and find the right medical practice financing for your business. Read part two of this series to find several banks that offer medical practice loans.

Author

Brad Mix

Brad Mix

Consultants, Growth Acceleration Consultants, Manatee, Mix, Sarasota

Florida SBDC at USF

Specialty: Disaster Assistance, SBA Lending, Startup

Brad Mix has more than 20 years of experience in the financial services industry and as a business consultant. Prior to joining the Florida SBDC at USF, Mix provided consulting services to more than 2,500 businesses and assisted business owners in securing more than $100 million in capital and $60 million in government contracts. He has extensive experience with SBA loans, including 504s, Community Advantage loans, and microloans. In addition, he assists business owners in preparing business plans, financial projections, profitability improvement, business acquisitions, business valuations, marketing and capital solutions.
Read more
https://enwqtxc9es4.exactdn.com/wp-content/uploads/2025/03/BradMix_2025WEB-e1742404651405.jpg?strip=all&lossy=1&ssl=1 1024 1024 admin /wp-content/uploads/2024/10/Locked-Host-Logos-Horizontal-USF-Small-e1728920602651.png admin2020-06-22 19:11:502025-05-29 19:23:13Brad Mix

A Comprehensive Guide to Medical Practice Loans for Physicians: Part Two

https://enwqtxc9es4.exactdn.com/wp-content/uploads/2024/01/A-Comprehensive-Guide-to-Medical-Practice-Loans-for-Physicians-Part-One.jpg?strip=all&lossy=1&ssl=1 750 1420 sbdclarry /wp-content/uploads/2024/10/Locked-Host-Logos-Horizontal-USF-Small-e1728920602651.png sbdclarry2024-01-31 13:32:402024-01-31 13:34:26A Comprehensive Guide to Medical Practice Loans for Physicians: Part One

A Comprehensive Guide to Medical Practice Loans for Physicians: Part Two

Blog, Healthcare

By Bradley Mix | January 30, 2024 In this article we will name several banks that offer Medical Practice Loans. As mentioned in part one of this article series, medical practice loans are specifically designed to provide doctors and medical specialists with the necessary funds to start or expand their practices. Below are the following […]

Read more
https://enwqtxc9es4.exactdn.com/wp-content/uploads/2024/01/A-Comprehensive-Guide-to-Medical-Practice-Loans-for-Physicians-Part-Two.jpg?strip=all&lossy=1&ssl=1 750 1420 sbdclarry /wp-content/uploads/2024/10/Locked-Host-Logos-Horizontal-USF-Small-e1728920602651.png sbdclarry2024-01-31 13:31:372024-01-31 13:33:31A Comprehensive Guide to Medical Practice Loans for Physicians: Part Two

Coronavirus: Small Business Updates and Resources

Blog, COVID-19, Disaster Preparedness, Featured News, Healthcare, SBDC News

COVID-19 Emergency Bridge Loan Extensions: The Florida Department of Economic Opportunity (DEO) sent an email on April 21, 2021, to COVID-19 Emergency Bridge Loan recipients with directions regarding how to apply for a repayment extension. The email came from “Rebuild Florida No Reply” with the Subject: “Emergency Bridge Loan Extension Request.” Check your email for the […]

Read more
https://enwqtxc9es4.exactdn.com/wp-content/uploads/2020/03/COVID-featured-image.png?strip=all&lossy=1&ssl=1 1144 1144 admin /wp-content/uploads/2024/10/Locked-Host-Logos-Horizontal-USF-Small-e1728920602651.png admin2020-03-13 12:22:342022-05-16 17:39:30Coronavirus: Small Business Updates and Resources

Are physicians looking in the wrong place for patients?

Healthcare

The latest physician’s health care delivery trend is to reduce the burden, cost and complexity of pursuing third-party reimbursement by only servicing cash paying patients through a concierge model. Such an arrangement affords a patient nearly free access to their physician. And, for the physician, this concierge business model makes perfect sense because it solves […]

Read more
https://enwqtxc9es4.exactdn.com/wp-content/uploads/2013/02/iStock_000010394136Large-Medium.jpg?strip=all&lossy=1&ssl=1 768 1152 admin /wp-content/uploads/2024/10/Locked-Host-Logos-Horizontal-USF-Small-e1728920602651.png admin2013-02-28 15:21:532013-02-28 15:21:53Are physicians looking in the wrong place for patients?

Categories

  • Business Essentials
  • Business Plans
  • Buying a Business
  • Certifications
  • COVID-19
  • Crowdfunding
  • Disaster Preparedness
  • Economic Development
  • Finance
  • Government Contracting
  • Growing Your Business
  • Healthcare
  • Human Resources
  • International Trade
  • Marketing
  • Press Releases
  • Radio and Podcast
  • Starting a Business
  • Success Stories
  • Success Stories Videos
  • Tech Commercialization/Tech Transfer
  • Veteran
  • Web and Social Media
Subscribe to Newsletter

Contact Us

Regional Office Contact Info

USF CONNECT
3802 Spectrum Blvd., Suite 201
Tampa, FL 33612

813-396-2700

Subscribe to Our Newsletter

Florida SBDC Network

The Florida SBDC at the University of South Florida is a member of the Florida SBDC Network, a statewide partnership program nationally accredited by the Association of America’s SBDCs and funded in part by the U.S. Small Business Administration, Department of Defense, State of Florida, and other private and public partners, with the University of West Florida serving as the network’s headquarters. Full funding disclosure available at www.floridasbdc.org/funding-disclosures/. Florida SBDC services are extended to the public on a nondiscriminatory basis. Language assistance services are available for individuals with limited English proficiency.

All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA or other funding partners.

Reasonable accommodations for persons with disabilities and/or limited English proficiency will be made if requested at least two weeks in advance. To request accommodation or language assistance, please contact Nelson Reyes, nreyes@usf.edu, 813.396.2700.

Logos

Business Assistance

USFMuma

State Designated as Florida’s Principal Provider of Business Assistance [§ 288.01, Fla. Stat.]

© Florida SBDC at USF | contact webmaster
Scroll to top Scroll to top Scroll to top
  • Get Answers