Financing for health care and clinics
Clinics and practices finance specialized equipment, fit-outs and practice acquisitions.
Key points
- Clinics invest heavily in equipment and fit-outs before seeing patients.
- Payments from insurers and government plans are reliable but can be slow.
- Lenders view healthcare practices as lower risk, which can mean better terms.
- Buying into or out of a practice is a common reason to borrow.
How financing works in health care and clinics
Medical, dental and allied health practices combine professional services with expensive equipment. Opening or upgrading a clinic means fit-outs, imaging and treatment equipment, and technology, while billing to insurers and provincial plans can take weeks.
Because demand for healthcare is steady, lenders generally see practices as strong borrowers. That opens up longer terms and better rates for equipment, real estate and practice acquisitions.
Common financing needs
Here’s how businesses in this industry typically match their needs to the right kind of financing.
| What you need | Usually the best fit | Why |
|---|---|---|
| Imaging, dental or treatment equipment | Equipment financing | High-value equipment financed over its useful life |
| Buy into or buy out a practice | Business acquisition | Finance a partner buy-in or the purchase of an established practice |
| Own your clinic space | Commercial real estate | Build equity instead of paying rent on a long-term location |
| Fit-outs and expansion | Term loans | A lump sum for leasehold improvements and new operatories |
How NorthMerit can help
Apply once and we’ll connect you with one financing partner who works with businesses like yours. It’s free, and there’s no obligation.
What lenders look at
Lenders look at your billings and collections, your patient base, your professional licensing and your experience. For acquisitions, they’ll look closely at patient retention and how the transition between practitioners will work.
Practices with a mix of private-pay and insured revenue tend to show steadier cash flow, which lenders value.
Other things partners commonly ask about: specialized medical and dental equipment; practice purchases and partner buyouts; leasehold improvements.
Buying into a practice
A dentist buys a 50% share of an established practice for $800,000. A lender finances most of it based on the practice’s history, with the selling partner taking back part of the price.
How to prepare
Prepare your licensing details, recent financial statements or billing reports, equipment quotes and, for a purchase, the practice’s financials and a transition plan.
Common questions
Is NorthMerit a lender?
Does it cost anything to apply?
Who will contact me?
Other industries
The right financing, from the right partner.
Apply once. One financing partner who knows businesses like yours. Free, with no obligation.
