Best Veterinary Practice Loans
Best Veterinary Practice Loans
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SBA 7(a) loan
Best for low-interest loan
Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.50-14.00%
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
SBA 7(a) loan
Best for low-interest loan
Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.50-14.00%
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Max loan amount
$150,000
Min. credit score
680
Est. APR
9.25-17.25%
Pros
- Bank line of credit with competitive interest rates.
- Revolving credit line with no scheduled annual review.
- No collateral required; no prepayment penalties.
Cons
- Must be an established business with strong credit to qualify.
- May take longer to fund than online lenders.
- Annual fee and inactivity fees may apply.
Wells Fargo BusinessLine® Line of Credit
Best for bank business line of credit
Max loan amount
$150,000
Min. credit score
680
Est. APR
9.25-17.25%
Pros
- Bank line of credit with competitive interest rates.
- Revolving credit line with no scheduled annual review.
- No collateral required; no prepayment penalties.
Cons
- Must be an established business with strong credit to qualify.
- May take longer to fund than online lenders.
- Annual fee and inactivity fees may apply.
Max loan amount
$150,000
Min. credit score
600
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
National Funding - Equipment financing
Best for equipment financing
Max loan amount
$150,000
Min. credit score
600
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
Max loan amount
$250,000
Min. credit score
625
Est. APR
14.00-48.00%
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
Bluevine - Line of credit
Best for online business line of credit
Max loan amount
$250,000
Min. credit score
625
Est. APR
14.00-48.00%
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
Bank of America - Health care practice loan
Best for bank term loan
Max loan amount
$5,000,000
Min. credit score
Undisclosed
Pros
- Can fund startup practices; interest-only and graduated payment structures available for startups.
- Fee discounts for veterans and endorsed medical group members.
- Dedicated project managers assigned to project-based loans.
Cons
- Loan terms, interest rates and qualification requirements not available online.
- Must call to learn more about financing options and how to apply.
- Cannot make loan payments online.
Bank of America - Health care practice loan
Best for bank term loan
Max loan amount
$5,000,000
Min. credit score
Undisclosed
Pros
- Can fund startup practices; interest-only and graduated payment structures available for startups.
- Fee discounts for veterans and endorsed medical group members.
- Dedicated project managers assigned to project-based loans.
Cons
- Loan terms, interest rates and qualification requirements not available online.
- Must call to learn more about financing options and how to apply.
- Cannot make loan payments online.
Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
iBusiness Funding - Online term loan
Best for short-term loan
Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
OnDeck - Online term loan
Best for fast funding
Max loan amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
Max loan amount
$1,500,000
Min. credit score
570
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Fora Financial - Online term loan
Best for bad credit
Max loan amount
$1,500,000
Min. credit score
570
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
Fundbox - Line of credit
Best for new veterinary practices
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
What is a veterinary practice loan?
A veterinary loan for your practice is a way to access capital for business expenses. Opening a new or acquiring an existing veterinary practice comes with big costs, and while a career in veterinary medicine can be a lucrative one, it takes time to establish a base of regular patients. It’s likely you will need financing at some point in your veterinary career, whether for upfront costs when opening your own practice, to cover one-time expenses like construction or even for ongoing costs like purchasing new equipment and supplies. Several types of veterinary loans are available, depending on your practice needs and qualifications.
Types of veterinary business loans
1. Bank loans
If you need a medical practice loan, it makes sense to first explore what is often the least expensive option — a conventional bank loan. Bank loans can offer qualified borrowers some of the lowest interest rates, highest loan amounts and longest repayment periods on the lending market. Some banks offer loans designed expressly for veterinarians to open new offices, expand their existing practices, purchase equipment, secure general working capital and more. Bank of America, Live Oak Bank and Huntington National Bank all offer specialized veterinary practice loans.
It’s often a good idea to start your search for a bank loan with an institution that has a branch near your home or office, as you may need to apply for financing in person. It also helps to have an established relationship with the bank — for example, an open personal or business checking or savings account — as some banks offer discounts to existing customers.
You should know going in that it’s not easy to qualify for a bank loan, as banks are notoriously risk-averse. In your loan application, be prepared to show evidence of steady profitability and a strong credit score, and you may need to put down collateral as well.
2. SBA 7(a) loans
Another highly coveted loan, the SBA 7(a) loan is disbursed by lenders but guaranteed by the U.S. Small Business Administration.
While the SBA offers several loan programs, SBA 7(a) loans are the most flexible and the most appropriate for financing several facets of your veterinary practice: purchase equipment, buy real estate to expand your practice, acquire another practice or use the funds as general working capital. In fiscal year 2024, the SBA has loaned more than $3 billion to businesses within the health care industry.
The SBA 7(a) loan is sought after for a reason: Loan amounts range between $50,000 and $5 million, interest rates begin at
10.5
% and repayment terms can extend up to 25 years, depending on the project you’re financing.SBA loans are not easy to qualify for, though. On top of meeting SBA eligibility requirements, you’ll need to go through a lengthy loan application, provide lots of documentation and give your lender a detailed explanation of your business and your intention for your loan funds. All in, the application and approval process for a 7(a) loan can take up to a few weeks. If you’re in a time crunch, you may need to narrow your search to an SBA preferred lender, which may be able to approve your application within 24 hours.
3. Online term loans
Business term loans are the right type of veterinary loan if you need to finance a single, large purchase. But if you can’t yet qualify for an SBA or conventional bank loan, or if you require faster funding, you’re not out of luck. Consider applying for a term loan from an online or alternative lender.
The best use for online term loans is general-purpose working capital. For example, if you need medical supplies for your veterinary practice or need to pay suppliers or your staff, you can take advantage of the fast funding from an online term loan.
Generally, online short-term loans last up to one year (sometimes two), and amounts range between $5,000 and $1.5 million. Online medium-term loans are generally repaid over one to five years, and loan amounts max out around $1 million. Interest rates on online term loans overall have a pretty large range, from 14% to 99%.
Online lenders exist to offer fast access to capital, particularly for business owners whose banks turned them down, so they’re much easier to qualify for than loans from traditional institutions. The approval and funding processes are super-fast, too, which makes this the best option if you need access to funds ASAP.
Because they’re working with a “riskier” pool of borrowers, alternative lenders need to protect their interests in case a customer defaults. For that reason, short-term loans tend to have higher interest rates, shorter repayment periods and lower loan amounts than bank loans.
» MORE: Best online business loans
4. Business lines of credit
Almost every small-business owner, veterinarians included, can benefit from having a business line of credit in their back pocket. These renewable resources are one of the most effective financing tools for accessing emergency cash — whether you need to furnish wages for a new group of veterinary assistants, replace a broken piece of equipment or meet increased demand after promoting your practice.
The great thing about a business line of credit is that you don’t need to tap into it — or pay interest on it — until you actually need the funds. Withdraw whatever amount you need, when you need it. After you’ve repaid what you owe, your line will replenish itself back to the original amount.
5. Equipment financing
Other than your skills and experience as a veterinarian, you rely on your equipment to take the best possible care of your patients — but that equipment doesn’t come cheap. If you need to purchase, lease or upgrade your most crucial tools, you may first consider equipment financing.
For this type of loan, you’ll approach your lender with a quote for the equipment you need. Depending on the equipment’s value, your lender will front you 80% to 90% of the cash you need to make the purchase (if your credit is excellent, you may qualify for 100%+ financing). Just like any other loan, you’ll repay your lender, plus interest, over a predetermined amount of time — and when you’ve met your debt obligation, you’ll fully own that equipment. With leases, you won’t own the equipment at the end of the lease term, but you will have the option to purchase the equipment.
Equipment financing is self-collateralized, which means that if a borrower defaults, the lender will simply reclaim the equipment they’re financing. That’s a built-in safety net; so in general, lenders are more willing to furnish equipment loans and leases to applicants with lower credit scores.
6. Business credit cards
Credit cards are hands-down the most convenient way to pay for veterinary practice’s small daily purchases and incidentals. As a business owner, make sure you use a dedicated business credit card for any purchases you make for your practice, whether it’s a staff lunch, gas for your car when you’re making a house call or a new blood pressure monitor.
Responsibly using a business credit card can help you build business credit, which may help you secure bigger veterinary business loans down the line. The credit limits for business credit cards are higher than those for consumer credit cards, which gives you more flexibility to make large purchases without worrying about maxing out your line. Plus, your business could benefit from your card’s cash back and rewards points.
How to apply for a veterinary practice loan
If you think you’re ready to apply for a veterinary loan, follow these steps.
- Determine the right loan type for your veterinary business. Based on what you need funding for and how much you need, decide whether a bank loan, online term loan, SBA loan, line of credit or equipment loan is the best fit for your practice needs. You may also determine that a business credit card is what you need.
- Make sure you qualify. Check the qualification requirements for the loan you intend to apply for. You’ll need to meet the minimum requirements for personal credit score, time in business and annual revenue. You’ll also need to be sure you can afford monthly loan payments for the amount you’re seeking. Use our business loan calculator to estimate your potential payment amount.
- Compare lenders. Once you’ve determined which type of loan you need for your veterinary business and the minimum qualification requirements you’re able to meet, it’s time to search and compare lenders. Based on your qualifications, you may be able to apply with a bank, the SBA, an online lender and/or a microlender.
- Gather the required documentation. You’ll need to include a number of documents with your application. Exact requirements will vary by lender, but in general, you can expect to supply proof of identity, general information about your business, personal and business financial documents (including tax returns) and details about your collateral, if applicable.
- Submit your application. Some lenders will require you to apply in person or over the phone, while others may accept your application online.
- Review and sign your agreement. Once your veterinary practice loan application has been accepted, you’ll receive an agreement to sign before you can receive your funding. Be sure to review the agreement carefully and ensure any questions you may have are answered before you sign.
A version of this article originally appeared on Fundera, a subsidiary of NerdWallet. Caroline Goldstein contributed to an earlier version of this article.
Last updated on September 17, 2024
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features. We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences. Here’s how we evaluate each lender and the approximate weights we place on each category:
- Cost (33%). Lenders that don’t charge origination fees or prepayment penalties rank higher in this category.
- Transparency (19%). Lenders that make it easy for borrowers to understand loan rates, fees, terms, qualification requirements and more rank higher in this category.
- Underwriting and loan flexibility (15%). Lenders that have flexible underwriting and offer multiple payment terms rank higher in this category.
- Credit (11%). Because it helps borrowers establish business credit, lenders that report timely payments to the commercial credit bureaus rank higher in this category.
- Application experience (11%). Lenders that offer fast funding and multiple ways to apply for a loan rank higher in this category.
- Customer service (11%). Lenders that provide multiple ways to speak with a customer service representative and an online dashboard for loan management rank higher in this category.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.
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