How to Apply for a Medical Practice Acquisition Loan: Step‑by‑Step

Get a qualified loan offer to buy a medical practice, with concrete steps, required documents, and clear thresholds for 2026 financing.

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Total time: about 30‑45 days from credit check to funding

What you'll need

  • Personal and business credit reports
  • EIN confirmation letter
  • Purchase Agreement or Letter of Intent
  • Federal tax returns (personal & practice) – last 2 years
  • Profit‑and‑loss statements & balance sheets – last 12 months
  • Bank statements – personal & business, last 3 months
  • List of existing debts and lease obligations
  • Transition Plan for post‑sale operations

Apply for a medical practice acquisition loan if you’re ready to buy

If you’re a physician, dentist, or urgent‑care owner planning to acquire an existing practice, this guide shows you how to walk away with a qualified loan offer in under 2 minutes. Outcome: a loan offer that matches your cash‑flow profile and lets you close the deal fast.

Check rates.

Steps

Below is the exact sequence you’ll follow. Each step lists concrete thresholds you must meet and the precise paperwork lenders expect. Missing any piece is a common reason files stall.

  1. Check Credit and Business History

    • Pull your personal credit report; a FICO score of 640 or higher is the SBA floor. Most lenders favor scores ≥ 700 for the best APR. nerdwallet.com
    • Verify the target practice has operated for at least 24 months and generates ≥ $100,000 in annual revenue. bankofamerica.com
    • Ensure a debt‑service‑coverage‑ratio (DSCR) of ≥ 1.25×; lenders use this to confirm cash‑flow can cover payments.

  2. Gather Required Documentation

    • EIN confirmation letter from the IRS.
    • Signed Purchase Agreement or Letter of Intent.
    • Federal tax returns (personal and practice) for the last two years.
    • Profit‑and‑loss statements and balance sheets for the most recent 12 months.
    • List of existing debts, lease obligations, and any personal guarantees.
    • Bank statements (personal and business) for the most recent three months.
    • Transition Plan detailing the seller’s post‑sale role, staff retention, and patient‑care continuity.
    • This checklist mirrors the documentation lists published by lenders such as Bank of America Practice Solutions and Live Oak Bank. bofa.com liveoak.bank

  3. Run the Payment Feasibility Test

    • Model monthly payments using the typical SBA 7(a) rate range = Prime + 2.75‑4.75 % APR. wsj.com
    • Keep the payment ≤ 12 % of gross monthly revenue – the industry‑standard ceiling for sustainable debt service. crestmontcapital.com
    • Verify DSCR stays ≥ 1.25×. If the payment exceeds the ceiling, increase equity, lower the loan amount, or extend amortization (up to 25 years for SBA‑backed loans). researchandmarkets.com

  4. Submit the Application

    • Upload the full package via our apply portal. The system performs a soft‑pull credit check and instantly shows the rate you qualify for – no hard inquiry.
    • Attach a concise cover letter that ties purchase price, transition costs, and working‑capital needs to the payment model you built.

  5. Compare Offers and Confirm Down‑Payment

    • Review at least three lender quotes to secure the best APR and terms. Most practice‑acquisition loans require a down‑payment of 15‑20 % of the purchase price, especially when equipment financing is bundled. nerdwallet.com
    • Look for pre‑payment penalties, amortization schedule, and any equipment‑financing fees.

  6. Close and Fund

    • Sign the loan agreement, provide final items (insurance certificates, board approvals), and satisfy any closing conditions.
    • Funds are usually disbursed within 3‑7 business days after closing, allowing you to complete the purchase and transition on schedule. nerdwallet.com

Internal links: For a deeper dive into loan options, see our practice acquisition loans. When you’re ready to start, go to the apply page.

Cross‑network reference: The financing tactics here line up with the strategies described in the 2026 guide for urgent‑care clinics, which stresses bundling equipment and working‑capital financing to streamline approval. urgentcarefinancing.com

Background & context

Each step mirrors the way lenders evaluate risk and mitigate default. Credit scores and business tenure establish borrower reliability; the DSCR and 12 % revenue ceiling prove the practice can service debt without jeopardizing patient care. Documentation provides the audit trail needed for SBA‑backed or private capital, while the payment test prevents over‑leveraging. Comparing multiple quotes forces competition, lowering rates and fees, and the short funding window after closing reduces exposure to market changes.

Bottom line

Complete these six steps and you’ll receive a qualified acquisition loan offer fast enough to keep the deal moving. See the rate you qualify for in 2 minutes — no credit‑score hit.

Disclosures

This content is for educational purposes only and is not financial advice. treated.finance may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.

Sources

Steps

  1. Step 1 Check Credit and Business History

    Pull your personal credit report and verify a FICO score of 640 or higher (the SBA floor). Confirm the target practice has at least 24 months of operation and generates ≥ $100,000 annual revenue. Lenders also look for a debt‑service‑coverage‑ratio (DSCR) of 1.25 or better.

  2. Step 2 Collect Required paperwork

    Gather: EIN confirmation letter, signed Purchase Agreement or Letter of Intent, personal and practice federal tax returns (last 2 years), profit‑and‑loss and balance‑sheet statements (most recent 12 months), a list of existing debts and leases, personal and business bank statements (last 3 months), and a Transition Plan outlining post‑sale staffing and patient‑care continuity.

  3. Step 3 Run a Payment Feasibility Test

    Use a spreadsheet or the calculator on our portal to model monthly payments. Keep the payment at ≤ 12 % of gross monthly revenue (the industry‑standard ceiling) and ensure DSCR stays ≥ 1.25. Adjust equity or loan size if the test fails.

  4. Step 4 Submit the Application via Treated.finance

    Upload the full document package to the [apply](/apply) portal. The system performs a soft‑pull credit check, instantly shows the rate you qualify for, and flags any missing items before you hit submit.

  5. Step 5 Compare Offers and Confirm Down‑Payment

    Review at least three lender quotes to secure the best APR and terms. Most practice‑acquisition loans require a down‑payment of 15‑20 % of the purchase price, especially when equipment financing is bundled.

  6. Step 6 Close and Fund the Deal

    Sign the loan agreement, provide final items (insurance certificates, board approvals), and satisfy any closing conditions. Funds are typically disbursed within 3‑7 business days, allowing you to complete the acquisition on schedule.

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