Written By Caitlin See
Whether you’re a physician, dentist or veterinarian, owning your own practice is a major career milestone. But the path to practice ownership has many bumps and turns, especially when it comes to funding this worthwhile dream.
There are a variety of ways to fund a small business. However, prospective medical, dental and veterinary practice owners have access to special financing with many lenders, including PNC Bank.
Read to learn about the PNC Solution loan for health professions.
PNC Solutions for healthcare, dental and veterinary practices: The basics
PNC has provided banking services for individuals, small businesses, corporations and government entities for more than 160 years. It currently serves more than 9 million consumers and small businesses, with locations across the Mid-Atlantic, Midwest, Southeast and Southwest regions.
As part of its many services and products, PNC provides practice financing for doctors, dentists and veterinarians.
Recognizing that healthcare professionals face unique challenges when opening and owning a practice, PNC provides “an array of cash flow solutions to help optimize your practice’s revenue cycle management”.
Additionally, PNC offers free educational tools for effectively managing a practice. This includes PNC’s semi-annual Business Insights e-newsletter and web seminars tailored for medical, dental and veterinary practices.
Practice Loan Quote Form
PNC practice loan types
Eligible physicians, dentists and veterinarians can secure practice financing from PNC that’s customized for practice expansions, clinical and business equipment, buy-ins and buy-outs, debt refinance, and real estate.
PNC provides special practice financing offers for Secured Term, Owner-Occupied Commercial Real Estate and Small Business Administration (SBA) Loans. Each type of loan requires automatic deduction from a business checking account.
Financing is available starting at $100,000. Loan amounts are as follows:
- $100,001 to $3 million with a new Secured Small Business Loan and Small Business Commercial Real Estate Loan.
- $100,000 to $5 million with a SBA 504 or 7(a) Small Business Loan.
PNC also provides a 100% waiver on its standard origination fee. But this doesn’t apply to third-party costs of SBA Loan fees.
Related: Should You Use a Dental Broker When Buying a Practice?
Borrower requirements for a PNC Solution loan for health professions
Practice loans are typically on a case-by-case basis. This is because lenders take many factors into account when customizing your loan. These details include information about your practice (e.g. acquiring an existing business versus opening a brand new one) and your individual financial situation.
Therefore, a PNC Solution loan for health professions will come with its own eligibility and underwriting requirements.
However, in general, prospective practice owners are most successful when securing financing when they have:
- No adverse credit events, including bankruptcy or short sale within the past seven years.
- A history of revenue production with your current employer that supports your requested financing amount.
- At least one year of employment history.
- Cash savings reserves of $10,000 or more.
Applying for practice financing is usually more difficult than applying for other types of financing, such as a mortgage. It’s a very relationship-focused business. Expect to have an in-depth discussion about your goals and business plan before applying.
For example, the lender might ask about the practice you’re interested in acquiring, including specifics about its patient base and forecasted income.
Since it’s not one-size-fits-all financing, it’s best to speak with potential lenders early in the practice financing process.
How to learn more about PNC practice financing
Like most practice financing programs, there isn’t a whole lot of information about the PNC Solution loan for health professions online. But there are a few different ways to get in touch with PNC to get the most accurate information for your specific situation.
PNC has a dedicated team of Healthcare Practice Managers in the following states:
- Alabama
- Arizona
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Missouri
- New Jersey
- New Mexico
- New York
- North Carolina
- Ohio
- Oregon
- Pennsylvania
- South Carolina
- Tennessee
- Texas
- Virginia
- Washington
- Washington, D.C.
- West Virginia
- Wisconsin
You can also call 877-566-1355, submit a contact request via its website or visit your neighborhood PNC bank branch to open discussions about plans for your practice.
Where to find practice loan options
A PNC Solution loan for health professions is just one option for physicians, dentists and veterinarians looking to open or expand their practice.
We recommend reaching out to at least two banks to secure the best pricing and terms for your unique situation.
Unfortunately, this can be difficult since most information about practice financing programs isn’t readily accessible online. This is due to the relationship-oriented nature of practice financing, which includes a highly involved exploration and application process.
Be prepared to spend some time jumping through the initial discussion and paperwork hoops to find the right fit. Start your search by exploring additional practice loan options broken down by state.
Practice Loan Quote Form
