Business loans for medical and dental practices through a broker

Doctors and dentists borrow to buy a practice, start one, buy into a partnership, equip operatories and imaging suites, purchase their building, and smooth the gap while insurers pay claims. A broker who knows healthcare places these deals with specialist practice lenders and SBA lenders who underwrite on credentials and production, not just the past few months of deposits.

Why practice lending is a specialty

Practice ownership is changing. The American Medical Association's Physician Practice Benchmark Survey, as reported by Fierce Healthcare, found 42.2% of physicians worked in private practice in 2024, down from 60% in 2012, and the share with an ownership stake fell from 53.2% to 35.4% over the same period.

Dentistry still leans toward ownership, but later. The ADA Health Policy Institute, reported in ADA News, found that early in their careers 21% of 2016 to 2020 graduates owned practices, compared with 33% of 2011 to 2015 graduates. Ownership rises with time: more than 80% of dentists in several earlier cohorts owned a practice 10 to 14 years after graduating.

For the owners who do buy or build, the financing is large and specialized. Lenders who focus on healthcare understand that a new dentist with heavy student debt and a strong production history is a good credit. General lenders often do not.

Practice acquisitions and partner buy-ins

Buying an existing practice is the most common large loan in healthcare. Lenders look at the practice's collections, overhead, patient count and payer mix, and at your clinical production and experience.

SBA 7(a) loans are widely used. The SBA's terms page allows loans up to $5 million, with up to 10 years for the business and up to 25 years for real estate. Under SBA rules in effect since June 1, 2025, a change of ownership requires an equity injection of at least 10% of total project costs, and a seller note can cover up to half of that if it stays on full standby, as United Midwest Savings Bank summarized. Specialist conventional practice lenders compete with SBA on many deals, sometimes with less equity required.

Partner buy-ins follow a similar pattern but finance a share of the practice. Lenders want the partnership agreement, the valuation method and the buyout terms.

Startups and new locations

Starting a practice from scratch, often called a de novo or startup practice, needs funding for build-out, equipment, technology, marketing and working capital until collections ramp up. Lenders weigh your clinical experience, the market's demographics, the lease terms and a realistic ramp in your projections. Healthcare lenders often build in interest-only or reduced payments for the first months.

Equipment financing

Dental chairs, CBCT scanners, intraoral scanners, lasers, ultrasound, X-ray and lab equipment are expensive and quickly become essential. Equipment financing is usually a straightforward approval because the asset secures the deal; the Equipment Leasing and Finance Association's index put the industry average credit approval rate at 77.2% in March 2026, as reported by Monitor Daily.

U.S. Bank's 2026 Section 179 summary puts the maximum deduction at $2,560,000 and notes that 100% bonus depreciation was reinstated. For practices buying major technology, that can shift the timing of a purchase.

Real estate

Many practice owners buy their building once the practice is stable. SBA 504 loans pair a bank loan with a CDC loan and require borrower equity of at least 10% of the project cost, according to the SBA's terms page, with terms up to 25 years for real estate. Owning the building can also become a retirement asset when the practice is sold.

Working capital and receivables

Insurance and government payers can take weeks to pay. A line of credit covers payroll and supplies while claims are processed. Some practices use medical receivables financing, which advances against submitted claims. These programs are specialized, and terms vary widely by payer mix, so a broker who knows them saves real money.

What brokers who know healthcare do differently

Documents to have ready

• Personal and business tax returns
• Practice financials, including collections and production reports
• Payer mix and accounts receivable aging
• Purchase agreement or letter of intent, and practice valuation
• Professional licences and résumé
• Lease or real estate details
• Equipment quotes

Questions to ask a healthcare broker

1. Which lenders on your panel specialize in medical or dental practices?
2. For this acquisition, how do SBA and conventional practice loans compare on equity, rate and term?
3. Will the lender offer interest-only or reduced payments during the transition?
4. How do these lenders treat my student loans?
5. Should equipment be financed separately from the practice loan?
6. Is there a prepayment penalty?
7. How are you paid, and will any SBA fee appear on Form 159?

Behaviours to avoid

Practice deals are large, which makes clear terms essential. Step back from anyone who asks for an upfront fee before any lender has made an offer, who presses you to sign a commitment the same day, or who will not share the lender's actual term sheet.

Find a healthcare finance broker

Browse medical and dental brokers on the register to find brokerages that place practice acquisitions, startups and equipment. Every entry carries a register number and last checked date. If an SBA loan is likely, the SBA loans page lists brokers who package them.