Running a medical or dental practice takes real capital, whether you're buying an X-ray machine, opening a second location, or covering payroll during a slow month. Medical and dental practice financing comes in several forms, from SBA and bank loans to equipment financing and revenue-based funding, and each one fits a different situation.

Banks and the SBA offer some of the lowest rates, but approval can take weeks and requires strong credit and time in business. Alternative lenders move faster and look at your revenue and equipment instead of just your credit score, which helps practices that don't fit a bank's checklist.

This guide breaks down the main financing options for medical and dental practices, what each one costs, and how to decide which one fits your situation.

What Financing Options Are Available for Medical and Dental Practices?

Medical and dental practices typically use four types of financing: SBA or bank loans, equipment financing, revenue-based financing, and working capital loans or lines of credit. Each one is built for a different need, from long-term real estate purchases to short-term cash flow gaps.

• SBA and bank loans: the lowest rates, but the longest approval times. Best for real estate or large acquisitions.
• Equipment financing: collateralized by the equipment itself, so approval is faster. Good for imaging equipment, dental chairs, or lab tools.
• Revenue-based financing: funding based on your practice's revenue and cash flow rather than collateral or credit alone.
• Working capital loans and lines of credit: short-term funding for payroll, supplies, or seasonal slowdowns.

SBA and Bank Loans for Medical and Dental Practices

SBA 7(a) loans in 2026 are capped at Prime plus 3.0% for loans over $350,000, which works out to about 9.75% with the current Prime rate at 6.75%. Down payments often run around 10%, and repayment terms can stretch long enough to keep monthly payments manageable during a practice's early years.

Startup costs add up fast. Most dental startups in 2026 need between $650,000 and $950,000 in total financing, depending on location and size, so a new practice usually pulls from more than one funding source rather than a single loan.

The tradeoff with SBA and bank financing is speed. Approval can take several weeks and requires solid credit and time in business. If you want the details on qualifying, our SBA loan requirements guide walks through the process.

Equipment Financing for Medical and Dental Equipment

Equipment financing lets a practice buy imaging machines, dental chairs, or lab equipment and pay it off over time, with the equipment itself serving as collateral. That collateral is why equipment financing can approve faster than a bank loan, with funding available in as little as two to five business days through alternative lenders and rates starting around 5% to 7.75%.

Tax rules make financed equipment even more attractive in 2026. Section 179 lets a practice deduct the full cost of qualifying equipment placed in service this year, up to $2,560,000, with the deduction phasing out after $4,090,000 in total purchases. Bonus depreciation is also 100% for equipment placed in service through the end of 2026, which can lower your tax bill in the same year you finance the purchase.

See our equipment financing page or our equipment leasing vs. financing guide for more on choosing between leasing and financing.

Revenue-Based Financing and Working Capital for Practices

Revenue-based financing gives a practice a lump sum in exchange for a fixed percentage of future revenue, so payments rise and fall with how the practice is doing. It looks at cash flow instead of credit score, which makes it useful for newer practices or ones that already have a real estate or equipment loan on the books. Our revenue-based financing guide covers how the repayment cap and cost work.

A working capital loan or business line of credit covers shorter gaps instead, like payroll during a slow month or a supply order placed before insurance reimbursements come in. It's less about a single large purchase and more about keeping cash flow steady.

How to Choose the Right Financing Option for Your Practice

The right option depends on what you're funding and how soon you need it. A large, one-time purchase like real estate or a practice acquisition usually fits SBA or bank financing best, since the lower rate matters more than speed. A specific piece of equipment fits equipment financing, since the equipment secures the loan and funding moves faster.

Cash flow gaps, payroll, or a practice that's still building its credit history usually fit revenue-based financing or a working capital loan better, since approval is based on revenue rather than time in business or a high credit score. Many practices end up combining more than one option, such as an SBA loan for a location and equipment financing for the tools inside it.

Frequently Asked Questions

Medical and dental practice financing isn't one-size-fits-all. SBA and bank loans offer the lowest rates for big purchases, equipment financing gets new tools in place fast, and revenue-based financing or a line of credit covers the cash flow in between. The right mix depends on what you're funding and how soon you need it.

If you're ready to compare options for your practice, contact Merchant Flow Financial to talk through equipment financing, revenue-based funding, and working capital solutions built around your practice's cash flow.