A physician practice loan is a form of business financing for licensed medical professionals and healthcare-related businesses that deliver direct patient care or operate within regulated clinical settings, who are looking to start, buy or grow a private practice.
These loans can help cover a variety of costs, such as acquiring real estate, purchasing equipment, hiring staff or refinancing earlier debt. Some physicians use them to launch their first clinic. Others use them to buy into an existing partnership or expand into a second location.
Unlike general business loans, the terms of these products are structured around the needs of medical professionals. That often means higher borrowing limits, more flexible repayment terms and lenders that understand the cash flow challenges that come with running a healthcare practice.
Common uses include:
Loan amounts vary significantly depending on the type of lender, your use of funds and where you are in your career. In our research, we’ve seen physician practice loans range from as low as $5000 to as high as $1 billion.
| Years remaining | Principal remaining |
|---|---|
| 5 years | $150,000 |
| 4 years | $126,706 |
| 3 years | $100,459 |
| 2 years | $70,882 |
| 1 years | $37,554 |
| 0 years | $0 |
What affects how much you can borrow:
Physician practice loans come in a variety of forms, each tailored to different stages of a medical career or specific business needs. Here are the most common types:
| Loan Type | Purpose | Best For |
|---|---|---|
| Practice acquisition loan | Buy an existing medical practice, including assets and goodwill | Doctors taking over an established clinic or solo practice |
| Startup loan | Launch a new practice from scratch; covers leasing, staffing, marketing | New physicians or residents starting their own practice |
| Equipment financing | Purchase or upgrade medical equipment; equipment acts as collateral | Doctors needing to invest in or replace clinical tools |
| Working capital loan | Cover operational costs like payroll, rent and supplies | Practices managing cash flow or seasonal income dips |
| Commercial real estate loan | Buy or refinance office space; long-term property financing | Physicians acquiring or refinancing their practice’s location |
| Refinancing / debt consolidation | Lower interest or combine multiple debts into one manageable loan | Practices looking to reduce costs or streamline payments |
| Business line of credit | Flexible, revolving credit for ongoing or unexpected expenses | Doctors who want access to funds as needed |
Not all lenders offer the same terms or understand the needs of medical professionals. Here are physician-friendly loan providers that offer competitive terms and industry-specific support.
| Lender | Financing Types | Target Borrowers | Max Loan Amount | Notable Features |
|---|---|---|---|---|
| Bank of America Practice Solutions |
|
| Up to $5 million |
|
| SunWest Bank (Truist) – Healthcare Division |
|
| Up to $10 million |
|
| BayFirst Financial – Healthcare Lending |
|
| Up to $5 million |
|
| Fidelity Bank – Commercial Healthcare Lending Solutions |
|
| Not specified |
|
| MidFirst Bank – Healthcare Lending |
|
| Up to $1 million via Express Lending |
|
LendioA connection service with a network of 75+ lenders.
| ||||
| First Citizens Bank – Healthcare Banking |
|
| Not specified |
|
| JPMorgan Chase – Healthcare & Life Sciences Group |
|
| From $5 million to $1 billion for asset-based lending solutions |
|
| BHG Financial |
|
| Up to $500,000 |
|
| AdvancePoint Capital – Medical Practice Business Loans |
|
|
|
|
| eCapital Healthcare | Asset-based lending |
| Up to $50 million |
|
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Most lenders treat medical professionals as a category of their own, and for good reason. Physician loans are structured differently from standard small business loans. The terms reflect the earning potential, operating costs and financial patterns that come with running a medical practice.
Key differences include:
"In 2015, I founded Modern Family Medicine with a 6.5% loan from Bank of America; the only program at the time tailored for independent physicians. Although I had planned a direct-primary-care membership model, the bank required me to accept insurance. I handled every aspect myself—credentialing, IT setup, forms and expense tracking—while the bank’s program simply monitored my costs. I also secured an SBA loan with zero down to purchase and build out my clinic. The process was straightforward, and in hindsight, hiring an attorney to review the paperwork wasn’t necessary. "
No two practices or physicians have the same financing needs. The right loan depends on where you are in your career, what you’re trying to build and how much flexibility you need along the way.
Questions worth asking before you apply:
What type of business are you starting?
While most lenders target MDs and DOs, many also work with a broader set of licensed providers and practice types.
Commonly eligible professionals include:
Practice types that often qualify:
Lenders typically require that the borrower holds an active license, has relevant credentials and operates or plans to operate in a clinical capacity. If you’re unsure whether your specific situation qualifies, it’s worth speaking directly with lenders that specialize in healthcare financing.
"I’m a dentist who took out loans to open my practice in 2021. At the time, my only real options were Bank of America and Wells Fargo, since most other lenders required applicants to be at least two to three years out of school, and I was only one year into my career.
I applied to both. Due to lingering uncertainty from the Covid disruptions in 2020, Bank of America paused new loan approvals after I had already submitted my application. Fortunately, Wells Fargo approved me.
The application process itself was pretty straightforward. The banks didn’t focus much on my personal financials, so I found what mattered most was my business plan. The hardest part was getting connected with the right people in the healthcare lending departments. Their terms and requirements were much more flexible compared to traditional small business lending, but it took some persistence to find the right contact."
Not every healthcare-related business or individual meets the criteria for a physician business loan. Most lenders are focused on clinical providers and practice-level ownership, which means certain applicants may be excluded.
Common disqualifiers include:
If you’re outside the typical profile but still working in a clinical or health-related field, it may still be worth reaching out to a healthcare-focused lender. Some offer alternative programs or can point you toward options that fit better.
Physician practice loans are a popular choice, but they’re not the only way to finance a clinic or healthcare business. Depending on your needs, timeline and credit profile, one of these alternatives may offer a better fit.
"I own a 5 star private practice called Dadjoo Orthodontics in Porter Ranch, California. For two years, I worked six days a week to save every dollar, living like a resident while consulting for nine different practices across California. I drove my little white Corolla from Fresno to Bakersfield to Santa Barbara and invested my savings in I-Bonds and T-Bills to earn more interest than banks could offer.
When I finally found the perfect practice for sale, I paid in full by check. Truly one of the best days of my life. Since then, I’ve focused on growing the practice and delivering the most advanced orthodontic treatments with exceptional service to families in our community. "
Securing a loan is just one part of getting your practice off the ground. Once funding is in place, there are key operational and compliance steps you’ll need to work through to ensure a smooth launch and long-term sustainability.
Core areas to plan for:
Credentialing and insurance enrollment
Getting set up with private insurers, Medicare and Medicaid takes time and affects how soon you can start billing.
EHR and billing systems
Choose tools that match your specialty, workflow and compliance requirements. Switching later is expensive and disruptive.
HIPAA and regulatory compliance
From staff training to data storage, make sure your practice is aligned with state and federal privacy laws from day one.
Staffing and hiring
Decide early which roles you’ll fill immediately and which can be phased in as patient volume grows.
Marketing and patient acquisition
Build visibility through local listings, referring networks and a basic online presence. This matters more than most first-time owners expect.
Starting a medical practice isn’t uncommon. In fact, it’s part of a broader trend of healthcare entrepreneurship across the US.
According to data from the Federal Reserve Bank of St. Louis, an average of 2,864 new healthcare and social assistance businesses are formed each month. That’s more than 34,000 new healthcare entities launched each year, including solo practices, outpatient clinics, specialty care providers and more.
This steady formation rate highlights that lenders are familiar with the financial profile of new healthcare businesses. Whether you’re a first-time practice owner or acquiring your second location, you’re stepping into a well-understood segment of the business lending market.
Physician practice loans can unlock the path to independent practice — but the best option depends on your goals, specialty and stage of your career. The more prepared and informed you are, the better your chances of securing competitive terms with a lender that understands your unique needs as a medical professional.
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