June 15, 2023
Medical practice loans are financial solutions that are uniquely designed to allow doctors and other healthcare providers to manage and expand their practices. Borrowed funds are used to cover expenses, improve facilities and patient experiences, and/or further develop operations. Larger loan amounts can be used for more specialized purposes, including but not limited to partner buy-ins, partner buyouts, and practice acquisitions.
Compared to other business financing options, medical practice loans are generally long-term solutions that can come with more generous borrowing limits and longer, more flexible repayment terms. As with any loan, the borrower is responsible for repaying the principal amount plus interest within a specific timeframe.
Note: Medical practice loans are intended for established healthcare providers. Those still in residency should consider alternative sources of funding to start a practice.
The lender’s perspective
Providers of financial solutions prefer to work with borrowers who demonstrate a great deal of reliability. Healthcare providers like you are highly respectable and critical members of our communities. You’ve made many sacrifices throughout your journey and are recognized for your superior work ethic and dedication.
In other words—your character matters, and it can increase your chances of being approved for financing.
Plus, in the eyes of the lender, medical practices are generally perceived as having a lower risk due to their high-income potential and ability to generate returns.
That being said, approval is never guaranteed. You must submit a completed application, have it reviewed by your lender, and wait for a credit decision based on creditworthiness and the specifics of the request, such as the amount you are looking to borrow.
For our part, BHG Money and other lenders are held to high underwriting standards. We’re responsible for protecting our institutions against delinquencies and charge-offs (when a lender writes off a debt that they believe will not be repaid).
To increase the likelihood of approval and to maximize the amount that can be borrowed, medical practice owners must be prepared to demonstrate financial strength, as well as the ability and propensity to repay debt.
3 ways to use a medical practice loan
There are 3 overarching reasons why a provider would obtain a medical practice loan. In this section, we’ll set context for each.
Note: These questions should serve as a starting point for weighing the benefits and drawbacks of expansion.
What are the advantages of obtaining a Medical Practice Loan from BHG Money?
When someone is looking for a specific service in the medical industry, it’s highly recommended that they see a specialist—a professional who has extensive expertise in that particular area.
The same approach bears weight for healthcare professionals who are searching for financing—it benefits you to choose an experienced financial partner who understands your unique needs and can provide you with a tailored loan solution.
BHG was originally founded in 2001 as “Bankers Healthcare Group,” specializing in financial solutions for members of the medical community. Since our inception, we have funded over 100,000 healthcare professionals, with many returning for additional financing to further develop their practices.
Though we’ve grown over 20 years of lending to serve other professions as well—now as BHG Money—we’re still committed to providing the financing that hardworking healthcare providers deserve.
Our Medical Practice Loans are customized to support every stage of practice development. Compared to other lenders that offer low amounts and/or short repayment periods, BHG Money provides loan financing up to $500,0001,2 coupled with extended terms of up to 12 years1, making your goals of acquiring or growing a practice more affordable than ever.
We understand that, as a practicing provider, your time is limited—so we simplify the application process as much as possible, while still maintaining the integrity of our business.
Can you relate?
For some medical providers, lack of financial know-how is a hinderance to the rapid success of their practice. Most often, business training—including financial management—is an afterthought in medical school and remains a persistent pain point for long thereafter.
At BHG Money, we’re dedicated to treating you with the same level of service that you give your patients. You can count on our team of trusted financial professionals, who are available 7 days a week, to guide you through the process and explain all your options so that you feel confident in your decision.
You can also view your personalized estimate in just 30 seconds without affecting your credit score by using our online payment estimator.
¹ Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile. Finance amount may vary depending on the applicant's state of residence. Call for complete program details.
² BHG Money business loans typically range from $20,000 to $250,000; however, well-qualified borrowers may be eligible for business loans up to $500,000.
For California Residents: BHG Money loans made or arranged pursuant to a California Financing Law license - Number 603G493.
No application fees, commitment, or impact on personal credit to estimate your payment.