Medical Practice Loans - NexGen Lending

Short answer: Medical practices usually finance clinical equipment with equipment financing, cover payroll and supplies between insurance payments with a line of credit, and use an SBA or term loan to buy a practice, open a new office or purchase a building. Lenders focus on collections, payer mix, the physician’s experience and practice cash flow.

At a glance

Best for equipment: Equipment financing (diagnostic, imaging, exam and EHR technology)
Best for cash flow: Business line of credit
Best for growth: SBA 7(a) / 504 loan or term loan
NexGen amounts: $10,000 to $20,000,000 across programs
Approval speed: Typically 1 to 24 hours for many programs
Credit: 650+ on most programs; 500+ for revenue-based financing; 700+ for SBA loans

Running a medical practice means balancing patient care with a business that carries high fixed costs: staff, rent, malpractice insurance, technology and equipment. Revenue arrives on the insurers’ schedule, not yours. This guide covers the best financing for primary care, specialty, pediatric, dermatology and multi-provider practices, and answers the questions physicians and practice managers ask us most.

At NexGen Lending, we help medical practices nationwide compare equipment, working capital and acquisition financing with one application.

What is the best loan for a medical practice?

Short answer: It depends on the need. Equipment financing is best for clinical equipment, lines of credit are best for recurring cash flow gaps, and SBA 7(a) loans are often the most affordable option for buying a practice, refinancing or expanding because of their long terms and government guarantee.

Financing type	Best for
Equipment financing	Ultrasound, X-ray, lab equipment, lasers, exam rooms, EHR systems
Business line of credit	Payroll and supplies between reimbursements
SBA 7(a) loan	Buying a practice, partner buyouts, expansion, refinancing
SBA 504	Buying your office building or medical condo
Real estate funding	Using equity in your office, condo or home (HELOC, cash-out refinance) to fund the practice
Term loans & unitranche debt	Office build-outs, new providers, adding service lines

How do I finance buying a medical practice?

Short answer: Most buyers use an SBA 7(a) loan, which goes up to $5 million and can cover goodwill, equipment and working capital, often alongside a down payment and sometimes a seller note. Lenders review the practice’s collections history, patient base, payer contracts and the buyer’s clinical experience.

Practice acquisitions and partner buyouts are common as physicians retire. Plan for a transition period where the selling physician introduces patients, and confirm that payer contracts and credentialing can transfer or be re-established. Our guide to buying an existing business walks through due diligence step by step.

What is goodwill? Goodwill is the value of a practice beyond its physical assets, such as its patient base, reputation, referral relationships and trained staff. In a practice purchase, goodwill is often the largest part of the price, which is why SBA loans, which can finance it, are popular for acquisitions.

What do lenders look for in a medical practice?

Short answer: Lenders review collections and deposits, payer mix, accounts receivable aging, the physicians’ licensing and experience, personal credit, existing debt and lease terms. Established practices with steady collections often qualify for strong terms, and physicians’ earning power is a meaningful factor for newer practices.

Time in business and provider experience
Monthly collections and consistent deposits
Payer mix and accounts receivable aging
Personal credit score
State medical licenses and board certification
Existing debt, including student loans for newer physicians
Lease or property details

How do I qualify for a medical practice loan?

Short answer: Keep licenses and credentialing current, track collections and accounts receivable carefully, separate business and personal finances, gather tax returns and financial statements, and get written quotes for equipment or build-outs. A clear plan for how financing adds patient capacity strengthens any application.

Gather financials. Two to three years of business tax returns and a current profit and loss statement are common requests for larger loans.
Know your collections. Track net collections, denial rates and days in accounts receivable.
Get quotes. Written equipment and build-out quotes help lenders size the loan.
Show the plan. Explain how a new provider, service or location grows revenue.
Keep personal credit healthy. It matters, especially for younger practices.
Compare offers. See how we compare lender offers.

Can a new medical practice get a loan?

Short answer: NexGen programs need some operating history. Revenue-based financing looks for steady deposits and a 500+ credit score, and most other programs need 12+ months in business and 650+ credit. NexGen programs are built for operating businesses, so brand-new owners often start with SBA microloans through nonprofit lenders, a CDFI or the local SBDC.

Budget for several months of overhead while credentialing completes and patient volume builds.

How fast can a medical practice get funded?

Short answer: Many NexGen programs approve in 1 to 24 hours, and equipment and working capital can fund quickly after approval. Practice acquisitions, SBA loans and building purchases usually take several weeks because of valuations, appraisals and documentation.

Frequently asked questions about medical practice financing

Can I finance EHR software and IT equipment?

Often, yes. Hardware is typically covered by equipment financing, and software and implementation can be covered by a term loan or bundled with equipment in some programs.

Should my practice buy its office?

Owning can stabilize occupancy costs and build equity. An SBA 504 loan is often used when the practice occupies at least 51% of the building.

How do I fund a partner buyout?

SBA 7(a) loans and term loans are commonly used for partner buyouts. Lenders review the practice’s financials and the remaining partners’ ability to carry the debt.

Is a line of credit worth having if cash flow is fine today?

Many practices open one as a safety net for slow reimbursement months or unexpected expenses. You pay interest only on what you draw.

What if my credit isn’t perfect?

With a 500 to 649 credit score, revenue-based financing is the main option, since it leans on sales more than credit. Most other NexGen programs, including equipment financing and lines of credit, require 650+, and SBA loans require 700+. Below 500, NexGen's business credit guidance can help you understand your credit profile and build toward approval.

Ready to grow your practice? Apply now or call (908) 639-4361.

This article is for general informational purposes only and is not financial, legal, or tax advice. SBA figures come from the U.S. Small Business Administration and NexGen figures from NexGen’s service pages, as of October 2026. Loan terms, rates, and eligibility vary by lender and program and are subject to approval. Availability varies by state.

Medical Practice Loans: How Physicians Get the Right Financing