Medical Practices
Medical Practice Financing
Medical, dental and veterinary practices use financing for partner buy-ins, new equipment, second locations and the 30 to 90 days it takes insurers to pay claims. Sagamore is a commercial loan broker that matches established practices in all 50 states with lenders for term loans, equipment financing, receivables financing and SBA loans.
Written by Jordan Levy, Founder & CEO · Last updated
What can a practice loan pay for?
- Who it's for
- Physicians, dentists, veterinarians and therapists who own an established practice, or who are buying into one or buying out a partner.
- The problem
- A partner buy-in, the buyout of a retiring owner or refinancing the debt from a practice's early years all need a lump sum. The practice's collections can repay it; its bank balance can't cover it.
- What fits
- A term loan gives a fixed amount with fixed payments sized to collections. For larger buyouts, SBA loans allow longer terms that keep the monthly payment low relative to cash flow, and lenders underwrite the practice's own collections history.
Products that fit
How do practices finance medical and dental equipment?
- Who it's for
- Practices adding imaging, CBCT or panoramic X-ray, lasers, operatory chairs, lab equipment or exam-room technology.
- The problem
- Diagnostic and treatment equipment can cost six figures, and paying cash for it drains the reserve that covers payroll while claims are pending.
- What fits
- Equipment financing uses the equipment as collateral and spreads the payments across its useful life, so a new modality can pay for itself through the procedures it makes billable. Installation, shipping and training can often be included. A term loan covers software and build-out that the equipment lender won't.
Products that fit
How can a practice get paid before insurers pay claims?
- Who it's for
- Practices, clinics and labs with a large share of revenue from commercial insurers, Medicare or Medicaid.
- The problem
- Claims take 30 to 90 days to pay, longer when they are denied and resubmitted. Payroll, rent and supplies don't wait, and a new payer contract or a credentialing delay stretches the gap further.
- What fits
- AR financing advances against outstanding claims while your billing team keeps collecting them. Factoring buys commercial insurance receivables outright for faster cash. Medicare and Medicaid claims can't be sold like ordinary invoices, so lenders that finance them use a deposit-account arrangement instead. A line of credit covers smaller, recurring gaps.
Products that fit
How do practices finance a second location?
- Who it's for
- Practices opening a second location, adding providers or buying the building they operate in.
- The problem
- A new location needs a build-out, equipment and months of staff salaries before the schedule fills. Buying your building instead of renting it needs a down payment and a lender comfortable with medical-use property.
- What fits
- SBA loans fit expansion, with long terms that can combine real estate, build-out and equipment in one loan. A commercial mortgage finances the building purchase on its own. A term loan covers a smaller build-out.
Eligibility
What do you need to qualify?
Sagamore is a broker, not a lender. One application is matched with lenders across all 50 states, and every program starts from the same minimums. We work with established businesses only, so startups are not eligible.
- Credit score
- 600+
- Time in business
- 1+ year
- Annual revenue
- $400K+
Frequently Asked Questions
Common questions about medical practice financing
Yes. AR financing advances against outstanding claims from commercial insurers, and factoring can buy those claims outright. Medicare and Medicaid receivables can't be sold the same way, so lenders that finance them do it through a deposit-account arrangement rather than buying the claims.
Yes. A term loan covers smaller buy-ins, and SBA loans are commonly used for full buyouts because of their longer terms. Lenders look at the practice's collections history, not only the buyer's income.
Usually business bank statements, tax returns, a recent profit and loss statement, an accounts receivable aging report and, for equipment, the vendor's quote. The practice needs at least a year in business, a 600+ credit score and $400K+ in annual revenue.
With equipment financing, the lender usually pays the vendor directly once the documents are signed, so the equipment ships and installs on the vendor's normal schedule.
Guides
Which guides cover medical practice financing?
- Invoice Factoring vs. Accounts Receivable Financing: What's the Difference?Factoring sells your invoices; AR financing borrows against them. Compare control, cost, customer visibility, and qualification, with a worked example.
- Should You Finance or Lease Business Equipment? Costs, Taxes, and Section 179 in 2026Financing builds ownership; leasing lowers monthly cost. A 5-year cost comparison, how the two lease types differ, and 2026 Section 179 limits.
- How Do I Finance Buying an Existing Business?How to finance a business acquisition in 2026: SBA 7(a) rules, down payment, seller notes, valuation, and a worked example of an underwritten deal.
- SBA 7(a) vs. SBA 504 Loans: Which Fits Your Business?SBA 7(a) vs. 504 in 2026: down payments, rates, fees, and uses compared, with a worked $2 million building example showing the monthly difference.
- What Do I Need to Qualify for a Commercial Mortgage?Commercial mortgage requirements explained: LTV, DSCR, credit, and down payment, and how owner-occupied and investment property loans are underwritten.
By state
Which state guides cover medical practice financing?
Each state guide covers its disclosure law, SBA offices and state loan programs. All state guides
Related Funding Options
Which funding options fit medical practices?
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