Specialized Financing for Healthcare Practices—Equipment, Expansion, and Growth Capital

Medical, dental, veterinary, and allied health financing designed around your practice's unique needs and reimbursement cycles.

Healthcare practices face unique financing challenges—from six-figure equipment costs to insurance reimbursement delays—discover specialized loan solutions designed for medical providers. Healthcare-focused lenders understand your equipment needs, insurance timing, and regulatory requirements, providing clarity you won't find with generic funding sources.

Explore Equipment Loans Plan Your Acquisition
A bright, modern medical facility with a healthcare professional reviewing digital charts, symbolizing advanced practice management and specialized financing.
From startup practices to multi-location groups—financing solutions for every practice stage.
Medical Practices
Dental Practices
Veterinary Clinics
Expansion
Working Capital
Startups

Medical Equipment Financing—Fund Advanced Technology for Your Practice

Close-up detail of high-resolution diagnostic imaging equipment, symbolizing large capital investment in medical technology.
Finance 80-100% of equipment cost with terms (3-10 years) matching the equipment's useful life.

Acquiring state-of-the-art equipment is often the single largest capital requirement for a growing practice. Understanding the nuances between loans and leases—and how they impact your cash flow—is critical.

Common Financing Structures

  • Equipment Loans: Typically finance 80-100% of the cost, using the equipment itself as collateral. Terms often extend 3-10 years.
  • Equipment Leases: Offers lower monthly payments and flexibility for technology refresh cycles. Consider Operating vs. Capital lease benefits.
  • Sale-Leaseback: Convert equipment you already own into immediate working capital while retaining the ability to use it.

Key Qualification Factors

Lenders specializing in the medical sector look closely at your practice revenue, patient volume stability, and the resale value of the specific equipment being purchased. Personal practitioner credit (typically 680+) remains an important factor, especially for newer practices.

Maximize Tax Benefits

Purchasing vital equipment often comes with significant tax advantages. Strategic planning around Section 179 deductions (up to $1.16M in 2024) and bonus depreciation can drastically lower the effective cost of your investment. We provide educational frameworks to help you evaluate the accounting impact of buying versus leasing.

Practice Acquisition & Partnership Buy-In Financing

Acquiring an existing practice or buying into a partnership is a complex transaction requiring specialized financial valuation and structuring expertise.

Acquisition Financing Options

The gold standard for practice acquisition. Offers long terms (up to 10 years for acquisition, 25 for real estate) and competitive rates. Can finance goodwill, equipment, and working capital up to $5M. Requires strong personal credit and a solid business plan.
Conventional loans from banks with specialized healthcare divisions are common. Often paired with Seller Financing, where the former owner holds a note for 10-30% of the purchase price, improving both cash flow and the viability of the deal.

Crucial Due Diligence Points

Before closing, thoroughly analyze three years of practice financial statements, patient retention data, insurance contracts, and accounts receivable aging. Proper valuation—often based on a multiple of revenue or EBITDA (typically 0.6-1.2x revenue)—is fundamental to securing favorable terms.

Two professionals, a doctor and an advisor, reviewing complex financial documents and charts on a clean modern desk, symbolizing due diligence and structured financing.
Ensure a smooth transition by planning for staffing continuity and working capital.

Practice Expansion & Facility Financing

A modern, newly constructed medical office building or clinic exterior, emphasizing growth and facility expansion.
Financing for multi-location scale-up, facility upgrades, and new service line integration.

Real Estate Financing Solutions

For owner-occupied medical office buildings (MOBs), the SBA 504 loan program is unparalleled, offering LTV up to 90% and long 20-25 year terms. For tenant improvements and build-outs in leased spaces, construction loans converting to term loans cover specialized improvements like plumbing, radiation shielding, or advanced HVAC necessary in a medical setting.

Financing Growth Across Multiple Locations

Expanding your footprint requires a coherent financing strategy. Whether opening a second satellite office or integrating new specialty services, the capital plan must account for:

  • 1. Equipment Needs: Financing for new location setup.
  • 2. Real Estate: Utilizing SBA 504 for property purchase or leasehold improvement loans.
  • 3. Working Capital: Business Lines of Credit to bridge the ramp-up period until the new location achieves patient volume sufficiency.

Cash Flow & Working Capital Solutions

Insurance reimbursement delays (often 30-90+ days) and high upfront supply costs frequently create cash flow gaps, even for profitable practices. Working capital solutions are designed specifically to stabilize this cycle.

The Power of a Business Line of Credit

A revolving Business Line of Credit (typically $25K-$250K) is ideal for managing payroll and operational expenses during reimbursement delays. You draw funds as needed and only pay interest on the outstanding balance, providing financial agility without the high cost of alternative financing.

Factoring vs. Line of Credit

Invoice Factoring (selling outstanding claims for immediate cash) provides faster capital but comes with higher fees (1-5%). We help practices weigh this cost against the flexibility of a traditional Line of Credit, ensuring the chosen solution supports long-term revenue cycle management goals.

A visual representation of fluctuating cash flow charts overlaid with a smooth line of financial stability, symbolizing gap bridge financing.
Stabilize operations and cover payroll by bridging the gap between service provided and insurance payment received.

Specialty-Specific Financing Guidance

A dental operatory budget differs wildly from a cardiology suite. Financing must reflect the unique equipment costs, revenue cycle, and growth patterns of your specific medical field.

Dental Practices

Focus on high equipment turnover (chairs, imaging, laser systems) and the need for working capital to support patient payment plans. Typical equipment costs run $250K-$500K for a full setup.

Veterinary Clinics

Financing needs often involve specialized surgical suites, large animal care facilities, and non-medical amenities like boarding or grooming expansions. Lending requires familiarity with mixed revenue streams.

Physical Therapy & Allied Health

Emphasis on facility build-out requirements, exercise equipment modalities, and navigating the complexities of authorization and reimbursement timing typical in rehabilitation services.

Find Your Specialty Matcher

Financing Your Healthcare Practice Startup

Startup practices face the hurdle of limited operating history combined with massive upfront costs for equipment and build-out. Success relies on a detailed funding strategy and conservative revenue projections.

Startup Funding Roadmap

  1. Personal Contribution and Home Equity
    Initial capital commitment (10-30% of total costs) is essential to build lender confidence.
  2. Physician Loan Programs & Manufacturer Financing
    Specialized loans available to new physicians (often based on employment contracts) or equipment financing directly through vendors.
  3. SBA Microloans or 7(a) (for larger startups)
    These programs recognize the challenges of new businesses and provide favorable terms for crucial working capital during the 6-18 month revenue ramp-up period.
A blueprint or architectural drawing of a new medical office layout overlaid with financial charts, symbolizing meticulous startup planning.
A strong personal credit history (720+ preferred) and a detailed business plan are non-negotiable for practice startup funding.

Healthcare Financing Resources & Next Steps

Ready to secure the capital you need? Utilize our free educational resources or connect with a specialist for personalized guidance.

Downloadable Guide

Grab our comprehensive Healthcare Practice Financing Guide [PDF] covering all options and qualification criteria.

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Get Personalized Guidance

Questions about complex partnership buy-ins or specialized equipment? Talk to a Leres Nito expert.

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