Being busy is not the same as getting paid
A practice earns its revenue the day the patient is seen. The cash shows up later.
- Medicare holds an electronic claim for at least 14 days before it pays. Paper claims wait 29.
- Private insurers each run on their own schedule.
- A denied claim starts the clock over once you correct and resubmit it.
Payroll, rent, malpractice premiums, and supplies do not wait. That gap is the most common reason a healthy practice borrows.
An equipment business
A medical practice runs on equipment, and the list keeps growing:
- Exam tables, procedure chairs, and lighting
- Ultrasound, digital X-ray, and in-office imaging
- Lab analyzers, EKG, and diagnostic devices
- Sterilization, refrigeration, and vaccine storage
- EHR software, servers, and the computers that run them
Equipment financing fits because the equipment secures the loan. Kapitus finances up to 100% of the cost for qualified buyers, on terms up to 72 months, with rates starting at 7.5%. New or used, and medical equipment is on its published list.
What a lender sees in a practice
Practices underwrite well, and for specific reasons.
- Payers are reliable. Insurers and Medicare pay slowly, but they pay.
- Deposits are steady. Many payments from many payers, week after week.
- Demand is not seasonal in the way retail or construction is.
A lender will also look for the weak points:
- Payer concentration. If one insurer is most of your revenue, a contract change hits hard.
- Key-person risk. A solo practice depends on one person’s ability to work.
- A new provider’s ramp. Salary starts on day one. Collections for that provider build over months.
Staying independent takes capital
Fewer doctors own their practices every year. The American Medical Association found that 42.2% of physicians worked in a physician-owned practice in 2024, down from 60.1% in 2012.
When the AMA asked why practices sell to hospitals, the top reasons were:
- 70.8%: to negotiate higher payment rates with insurers
- 64.9%: to get access to costly resources
- 63.6%: to better manage payers’ regulatory and administrative demands
Financing does nothing for payer rates. It can address the second reason. A practice that can fund its own imaging suite, EHR upgrade, or second location has one less reason to sell.
Medical practice loans: what you can get
| Product | Amount | Term | Typical use in a medical practice |
|---|---|---|---|
| Line of credit | Up to $750,000 | Up to 24 months | Payroll and rent while claims are pending |
| Equipment financing | Up to 100% of cost | Up to 72 months | Imaging, lab analyzers, exam rooms, EHR hardware |
| Term loan | Up to $5 million | 6 to 36 months | A new provider’s ramp, an urgent repair |
| SBA 7(a) loan | Up to $5 million | Up to 25 years | A second location, a build-out, a practice purchase |
| Business HELOC | Up to $750,000 | 5 to 30 years | Low-rate capital for an owner with home equity |
Amounts and terms are what our primary lender publishes; your offer is sized to your collections and bank balances.
Matching the tool to the need
- Equipment: equipment financing. Match the term to the equipment’s useful life.
- Timing gaps: a line of credit. It is the cheapest way to cover a gap you expect to close.
- Growth with a plan: an SBA loan if you can wait, a term loan if you cannot.
When financing is the wrong fix
If collections are falling because of denials, coding errors, or slow billing, borrowing covers the symptom. Fix the billing first. A loan against a revenue cycle that is leaking only postpones the problem.
Medical practice financing requirements
The starting points are the same as for any business: 2 years in business, $250,000 in annual revenue, and a credit score of 600 or higher, with floors that run from 600 to 680 depending on the lender. Equipment financing can start at 1 year with some lenders. An SBA loan asks more: a 680 score published, above 700 in our experience, and about 10% down.
Have these ready:
- 3 to 6 months of business bank statements
- An accounts receivable aging report, by payer
- Your payer mix, as rough percentages
- For equipment, the vendor’s quote
Check your number with the funding estimator, or review the requirements by product.
Sources
- American Medical Association: Smaller share of doctors in private practice than ever before, June 24, 2025, reporting the Physician Practice Benchmark Survey of 5,000 physicians
- CGS Medicare: Payment floor status, a Medicare administrative contractor
- Kapitus: Equipment Financing, checked October 12, 2026