Dental and Medical Practice Loans, How Practice Lending Really Works
Practices barely ever fail and every lender knows it. The bank route wins acquisitions, the tested online routes win on speed and second opinions, and this page splits them honestly for dentists, physicians, and veterinarians.
In This Article
- The bank route wins acquisitions, 100 percent financed practice purchases are normal in dentistry, take that meeting when offered.
- Live Oak Bank works the SBA healthcare lane in our tested roster for acquisitions and buildouts.
- Speed has a price, National Funding underwrites on revenue from a 1.10 factor when the bank moves too slowly.
- Specialist practice lenders are in our vetting pipeline, this page grows as they pass, we only rank what we have tested.
Banks will hand a dentist a million dollars at 100 percent financing. There is a reason. Dental practices barely ever fail, and every lender knows the default data. This page explains how practice lending really works, what the bank route wants, and where the tested online routes fit, for dentists, physicians, and veterinarians alike.
Live Oak Bank
APR from 11.50%
Get StartedSide-by-Side Comparison
| Feature | |  |  |
|---|---|---|---|
| Best for | Acquisitions and buildouts, SBA route | Comparing offers with one form | Equipment and working capital gaps, fast |
| Pricing | SBA capped rates and fees | 9.75% to 60% APR by lender | Factor rates from 1.10 |
| Speed | Weeks, SBA process | 1 business day to offers | As fast as 24 hours |
Full Reviews
The nation's #1 SBA 7(a) lender by dollar volume, but strict eligibility and limited rate transparency mean it works best for established businesses with strong financials.
Time in business: 2+ years
Pros
- Nation's #1 SBA 7(a) lender by dollar volume (2,280 loans, $2.8B+ in FY2026), with PLP status for faster in-house approvals
- Combination financing allows deals up to $15 million by pairing SBA 7(a) with conventional loans, far exceeding the standard $5M cap
- Dedicated business analysts assigned to each borrower for the full life of the loan, with industry-specific teams for healthcare, veterinary, and agriculture
- No prepayment penalties on loans with terms under 15 years, and SBA guaranty fees waived on loans under $1 million
Cons
- No rate or fee information published online. You must speak with a loan officer before you can compare Live Oak to any competitor
- Strict eligibility: minimum 650 credit score, 2+ years in business, and extensive documentation including 2-3 years of tax returns
- Funding takes 25-45 days minimum, and complex SBA deals can stretch to 90 days. This is not a fast-cash option
- No physical branches anywhere. All interactions happen digitally or by phone, which is a problem if you prefer face-to-face banking
Lendio gives you one application to shop 75+ lenders, but your data goes wide and final rates can climb past 50% APR.
Time in business: 6+ months
Min. revenue: $50K/year
Pros
- One 15-minute application reaches 75+ lenders, saving hours of individual applications across different platforms
- Accepts borrowers with credit scores as low as 560, giving subprime borrowers more options than most direct lenders offer
- Wide product range covering term loans, lines of credit, SBA 7(a), MCAs, equipment financing, and invoice factoring through a single portal
- Dedicated funding specialists walk first-time borrowers through product selection at no charge to the borrower
Cons
- Your personal and business data (including SSN and tax returns) is shared with multiple third-party lenders who may retain it permanently and contact you aggressively via phone, email, and text
- APR range stretches to 60%, and you cannot see actual rates until after submitting your full application, making upfront comparison impossible
- Merchant cash advances use factor rates (1.1 to 1.5) that obscure the true annualized cost, which can exceed 50% APR
- Customer support is limited to weekday business hours (Mon-Fri 7:30am-5pm MT), and multiple BBB and Reddit complaints describe unresponsive service after the initial application
- Once matched with a lender, Lendio is no longer involved in servicing your loan, leaving you without an advocate if problems arise
Fast funding for fair-credit borrowers, but factor rates make the true cost hard to compare with traditional lenders.
Time in business: 6+ months
Min. revenue: $250,000/year
Pros
- Funds deposited as fast as 24 hours after approval, among the fastest in the alternative lending space
- Accepts personal credit scores as low as 600, opening the door for borrowers shut out by banks
- No prepayment penalty, with a 7% early payoff discount if you repay within the first 100 days
- Dedicated funding specialist assigned to each borrower, frequently praised by name in Trustpilot reviews
Cons
- Factor rates from 1.10 to 1.35 translate to true APRs that can exceed 50% on shorter terms, far above SBA or bank loan pricing
- No rates or fees are disclosed until you apply and speak with a specialist, blocking easy comparison shopping
- Daily or weekly ACH repayments can strain cash flow for businesses with uneven revenue cycles
- Aggressive unsolicited direct-mail campaigns (the Ignite card) generated the bulk of BBB complaints, and opting out is not straightforward
How to Choose
Buying a practice or building out a new location
SBA 7(a) money through a bank that knows healthcare lending, the route practice acquisitions actually run on.
The bank said the practice is too small, or you want a second opinion
One application reaches 75 plus lenders including SBA options, price the bank offer honestly.
The chair breaks in March and the bank moves in May
Revenue underwriting from a 1.10 factor, approvals in about 24 hours, faster and costlier than the bank on purpose.
Why Practices Get Special Treatment
Practice lending is its own category. The collateral is a cash flowing business with insurance backed receivables. Banks compete hard for it, which is why 100 percent financed acquisitions are normal in dentistry, no down payment, the practice pays for itself. If a bank offers you that, take the meeting. This page is for everything the bank meeting does not cover.
The Routes, Honestly Ranked
Acquisitions and buildouts run on SBA 7(a) money through banks that know healthcare. Live Oak Bank in our roster works exactly this lane. Need speed or a second opinion? One Lendio application reaches 75 plus lenders, SBA options included. For equipment and working capital gaps at a running practice, National Funding underwrites on revenue, factor rates from 1.10. Faster and costlier than the bank. Useful when the chair breaks in March and the bank moves in May.
The Specialist Practice Lenders
Specialist practice lenders exist too. A handful of newer lenders write only for doctors and dentists, and they come up in every Reddit thread on practice debt. We have not tested them yet, they are in our vetting pipeline, and this page will grow as they pass. Until then we only rank what we have tested.
What Decides Your Rate
Production history and collections. Your specialty's overhead. Time since licensure. And how much of the practice the loan buys. New associates buying in get different math from owners refinancing a chair. The SBA route runs slower but caps fees, bank practice loans price lowest of all, online routes trade cost for speed. The wider field lives in our small business loans ranking and the working capital guide.
Frequently Asked Questions
Yes, it is normal in dentistry. The collateral is a cash flowing business with insurance backed receivables and banks compete hard for it. If a bank offers you that, take the meeting.
Yes. The same structure applies for physicians and veterinarians, banks and SBA lenders for acquisitions, online routes for speed and gaps. Specialty overhead profiles change the rate, not the route.
Revenue based underwriting. National Funding approves in about 24 hours from a 1.10 factor rate. It costs more than the bank on purpose, speed is the product.
A handful of newer lenders write only for doctors and dentists. We have not tested them yet, they are in our vetting pipeline, and this page will grow as they pass. Until then we only rank what we have tested.
About the Author
Senior Finance & Banking Editor
Richard is the veteran anchor of the site's financial content. Raised in the Midwest and starting his career in Chicago's commercial banking sector, he spent over a decade underwriting small business loans before moving into financial journalism. He doesn't get swept up in startup hype; he cares about unit economics, APYs, and fee structures.
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This page is for educational and informational purposes only and is not professional financial advice. Rates, fees, and eligibility change and vary by applicant. Confirm all terms directly with the provider before signing any agreement. StartupOwl earns a referral fee on some providers, which does not affect our rankings.
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