Capital for medical practice acquisition and growth — Healthcare Practice Funding

Yes, most lenders typically require a down payment ranging from 10% to 20% of the total purchase price. This equity contribution helps demonstrate your commitment to the acquisition and satisfies SBA 7a lending requirements for most healthcare-related transactions in the current market.

While your personal credit history is a significant factor, healthcare-specific lenders weigh your professional credentials heavily. Scores of 680 or higher are standard, but if your score is lower, strong business cash flow projections for the practice can sometimes offset the difference for specific lenders.

Lenders primarily use the assets of the practice, such as medical equipment and accounts receivable, as collateral. For startup loans, they may require a lien on the specific equipment being purchased, while acquisition loans often rely on the practice's established cash flow as primary security.

Standard commercial banks may not understand the specific valuation nuances of a medical practice, such as goodwill value. Specialized lenders have underwriting models that account for the unique operating costs and high revenue stability characteristic of established healthcare practices across the United States.