Quick answer: Medical practices most often use a line of credit to cover the gap between treating patients and getting paid by insurance, a term loan for expansions or renovations, and equipment financing for imaging, exam and lab equipment. Established practices with steady deposits can be funded within days by a non-bank lender, even while waiting on insurance reimbursements.
Why medical practices need financing
Insurance reimbursements can take 30 to 90 days, but payroll, rent, malpractice insurance and supplies are due every month. Adding a provider, opening a second office or upgrading equipment also requires money up front, long before the new revenue shows up.
Common uses for medical practice financing
- Covering payroll while waiting on insurance reimbursements
- Buying or upgrading imaging, lab or exam equipment
- Renovating or expanding an office
- Opening a second location or adding a provider
- Upgrading EHR, billing or telehealth systems
- Buying into or purchasing a practice
Financing options for medical practices compared
| Option | Best for | Speed |
|---|---|---|
| Line of credit | Insurance reimbursement gaps and payroll | 1–3 days |
| Term loan | Renovations, expansion, new providers | Same day to 2 days |
| Equipment financing | Imaging, lab and exam equipment | A few days |
| SBA loan | Buying a practice or real estate at low rates | Several weeks |
What lenders look at for medical practices
Lenders look at your monthly deposits, including insurance and patient payments, your existing debt, and how long the practice has operated. A steady history of reimbursements is a strong sign, even if collections arrive unevenly.
What you need to qualify with Brookestone Funding
- 2+ years in business
- $30,000+ in monthly revenue
- 600+ credit score
- Recent business bank statements
Qualified medical practices can borrow $10,000 to $2,000,000 with terms up to 36 months and rates starting at 8%. Complete applications submitted early in the day can be funded the same day.
Tips before you apply
- Have recent bank statements that show insurance and patient deposits.
- Know your average monthly collections, not just billed charges.
- List existing equipment leases and loan payments.
- Compare offers on the total amount you’ll repay, not just the rate, and size the payment to your slowest month.
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Frequently Asked Questions
Can a medical practice get a business loan with a 600 credit score?
Yes. Brookestone Funding works with medical practices that have a 600+ credit score, 2+ years in business and $30,000+ in monthly revenue.
How fast can a medical practice get funded?
Qualified medical practices can often be funded the same day with a business term loan, or within 1–3 days with a line of credit, once the application and recent bank statements are complete.
What is the best loan for a medical practice?
A line of credit is best for reimbursement gaps, a term loan for expansions and renovations, equipment financing for specific equipment, and an SBA loan for buying a practice or property if you can wait several weeks.
Can a medical practice borrow against insurance receivables?
Some lenders offer medical receivables financing. A line of credit is a simpler alternative that covers gaps while claims are paid.
Ready to see what your medical practice qualifies for? Brookestone Funding offers business term loans, lines of credit and SBA loans from $10,000 to $2,000,000, with same-day funding available for qualified businesses. Apply in minutes, see our business loan options, or call 212-258-0602.
