Finance
Financing an independent medical practice
Independent practice financing is well-established and physician-friendly. Startup practices typically qualify for $150k–$500k in blended debt (real estate + build-out + working capital). Rates in 2026 are 8%–11% for physician startup loans, 7%–9% for SBA-backed. Bring 12 months of runway plus lender-required equity injection.
By Jordan Alderman, MBA, CMPE · Reviewed by Rania Hassan, JD, CHC · Last reviewed · Methodology
Disclosure: Independent editorial. No pay-for-placement, no affiliate rankings. Full editorial standards.
This guide covers the financing options independent physicians actually use — startup loans, SBA 7(a) and 504, equipment financing, and working capital lines.
Physician startup loans (bank-direct)
Most major banks (Bank of America, US Bank, Live Oak, Bank of the West) offer physician-specific practice loans. Terms typically: $250k–$1M, 8%–11% rate, 5–10 year term, minimal down payment (5%–10%).
SBA options
- SBA 7(a): up to $5M, 10-25 year term, competitive rate, guaranteed portion reduces bank risk
- SBA 504: real estate + fixed assets, 10-25 year term, 10% down typical
- Longer approval than physician-direct (60-120 days)
Equipment financing
Medical equipment financing runs 6%–12%, 3–7 year term, no personal guarantee on higher-quality practices. Vendor financing (from the equipment manufacturer) is often subsidized but check the effective rate.
Working capital lines
Every practice should carry a $50k–$250k line of credit for AR bridge and unexpected expenses. Draw only when needed and pay down quickly.
What lenders actually look at
- Personal credit score (720+ ideal)
- Debt-to-income including student loans
- Executed employment or partnership offer
- Business plan with 3-year projection
- Personal financial statement
- Practice location + market analysis