Why do collections and deposits matter most?
Collections and deposits show whether the practice can repay. Funders look at monthly totals, the trend over several months, and consistency. A practice with steady deposits reads better than one with a strong month followed by several weak ones. For insurance-heavy practices, collections lag visits, so funders look at how reliably billed services become deposits.
Bank statements are the core evidence. Many funders also ask for a collections summary from billing software and accounts receivable totals by age and payer category. Large unexplained swings prompt questions, so be ready to explain a seasonal dip, a payer delay or a provider leave.
How does payer mix affect the review?
Funders look at how revenue splits among commercial insurance, government programs, vision or other plans, and patient or client payments, and how quickly each pays. No payer mix is disqualifying on its own. The mix affects timing, which products fit and how receivables can be used, since government program receivables are treated differently as collateral.
Cash-pay practices, such as many veterinary, chiropractic and membership clinics, show deposits at the time of service, which are easy to read. Insurance-based practices show a lag. Mixed practices should break revenue out by source so a funder sees the full picture. See how this plays out for veterinary clinics and therapy clinics.
How important is credit?
Credit matters, but it is one factor among several. Funders review the owner's personal credit and the practice's business credit, including payment history and existing debt. There is no single score that decides every request. Strong credit generally brings longer terms and lower cost, while strong collections can help balance a thinner credit profile for some products.
A practice's collections, payer mix and deposits tell most of the story, so funders review the practice, not just the provider's score. Before applying, check your credit reports for errors and ask each funder whether its initial review uses a soft or hard credit inquiry.
Does time in practice matter?
It does, because a longer history gives funders more evidence. Requirements vary by product and funder; many look at time in business, monthly revenue and credit. Newer practices can still qualify for some products, especially equipment financing, where the equipment secures the financing. Funders then weigh the provider's clinical experience, credit and plan more heavily.
A physician who spent years in a busy group before opening an independent practice brings experience a funder can evaluate even without practice history. A clear monthly forecast and a credentialing plan help. See funding a new practice.
What else do funders review?
Funders also look at existing debt and advances, because other payments reduce what the practice can take on, at active and unrestricted licensing for the providers generating revenue, at provider concentration, and at the purpose of the funding. A clear use, such as a quoted piece of equipment or a signed lease, is easier to fund than a general request.
- Existing obligations: loans, leases and advances that already draw on deposits
- Licensing: active licenses for revenue-generating providers are generally expected
- Concentration: reliance on one provider, one payer or one referral source
- Purpose: equipment quotes, bids, leases or purchase agreements that show exactly where the money goes
How do requirements differ by product?
Equipment financing leans on the equipment as collateral, so it can be more flexible for newer practices. Working capital and revenue-based financing lean on recent deposits. Lines of credit are sized from collections history. Term loans and SBA options review the fullest picture, including tax returns, debt and project documents, and take the most time.
Match your request to what your file supports. See all funding solutions for how each product works, and prepare using the document checklist before you apply.
Frequently asked questions
What credit score do I need for practice financing?
There is no single cutoff that applies to every product or funder. Collections, deposits, experience and the purpose of the funding are weighed alongside credit. Stronger credit generally brings better terms, and some products are more flexible than others for owners still building credit.
Do new practices qualify for financing?
Some products work for newer practices, especially equipment financing and smaller working capital amounts, when the owner has solid credit, relevant experience and a clear plan. Expect funders to ask more about the ramp-up and credentialing timeline when history is short.
Will funders need patient records?
No. Funders need financial summaries such as bank statements, collections totals and receivables by payer category. Never share patient names, charts or any patient information. If a report from your billing system includes patient detail, export a summary version instead.
Do licensing issues affect funding?
Active, unrestricted licenses are generally expected for the providers who generate the practice's revenue. A pending license action or lapsed license can stop a request, so resolve any licensing questions with the licensing board and your attorney before applying.
Does an existing advance or loan stop me from qualifying?
Not automatically, but funders count existing payments when deciding what the practice can take on. If an existing advance's payment is squeezing cash flow, ask about options to lower your payment and stretch the term before adding new obligations.
See where your practice stands
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Updated September 14, 2026 · MedicalBizFunding Team