SBA 7(a) loans remain the benchmark for medical practice acquisitions, offering up to $5 million with terms stretching to 25 years for real estate and 10 years for goodwill. The SBA allows physicians, dentists, chiropractors, and veterinarians to finance practice purchases even when the seller stays on as an employee, a structure frequently used in Lowell's tight primary-care market along Middlesex Street and in the Highlands neighborhood. Documentation includes personal and business tax returns, a purchase-and-sale agreement, and an independent valuation of patient charts and equipment.
Equipment financing covers imaging systems, dental chairs, surgical lasers, and diagnostic tools without tying up working capital. Lenders typically advance 80 to 100 percent of the invoice cost, using the equipment itself as collateral. For a dental practice in Chelmsford upgrading to digital radiography or a veterinary clinic in Dracut replacing an ultrasound unit, equipment financing isolates the asset and avoids diluting the practice's existing credit lines.
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Medical receivables financing and invoice factoring convert outstanding insurance claims into immediate cash. Practices with 30- to 60-day reimbursement lags from commercial payers can factor invoices at rates tied to payer quality, turning submitted claims into operating capital within 48 hours. This structure works particularly well for high-volume practices in North Chelmsford or Tewksbury managing seasonal patient surges.
