Funding for healthcare businesses

Updated October 16, 2026

Why healthcare cash flow is different

Most businesses get paid when they deliver. Healthcare practices often deliver first and get paid weeks later, after a claim is submitted, processed and sometimes appealed. Payroll for licensed staff, rent, supplies and equipment leases do not wait for that cycle. That timing gap, not profitability, is often why a healthy practice needs outside capital.

Three situations make the gap wider:

• Adding a provider. A new clinician has to be enrolled and credentialed with payers before their claims are paid. For Medicare, enrollment runs through PECOS. Salary starts before reimbursement does.
• Payer mix changes. A shift toward slower-paying plans stretches the cycle even when patient volume is steady.
• Denials and rework. Coding errors and missing documentation push claims back into the queue. See funding for medical billing delays.

Funding guides by type of practice

Medical, dental, chiropractic, veterinary and home health practices are among the industries listed as commonly eligible on our eligible industries page. Each practice type has its own guide:

Which product fits which need

• Reimbursement gaps that repeat: a business line of credit lets you draw when claims lag and repay when they clear.
• Imaging, chairs, lasers and other equipment: equipment financing spreads the cost over the useful life of the machine.
• A one-time push: working capital for a build-out, a new provider's first months or a marketing launch.
• Card-heavy practices: a merchant cash advance or revenue-based financing ties repayment to sales. Compare carefully; see MCA for medical practices.
• Buying a practice or real estate: SBA loans are often the lowest-cost route for acquisitions. The SBA 7(a) loan page sets a maximum of $5 million.

A note on government receivables

Medicare and Medicaid restrict how their payments can be assigned to third parties. That limits invoice factoring of government receivables and is one reason many practices use a line of credit or working capital, which is repaid from the practice's account, for gaps tied to government payers. Ask any funder how it treats government receivables before you sign.

How we review a healthcare practice

We look at deposits, existing obligations, credit and how the practice operates, including how steady reimbursements are across months. Applying starts with a 5-minute application and about three months of business bank statements, with a soft credit pull to start. FICO 500+ is considered, and funding ranges from $25,000 to $5,000,000. No tax returns are required to apply. Every offer shows the full repayment amount before you accept. Sole proprietors can apply the same way an LLC or corporation does. For free help with a practice plan or acquisition, a Small Business Development Center (SBDC) advisor can review your numbers.