Best Loans for Veterinarians
These lenders offer unique benefits like practice acquisition loans, equipment financing and even on-staff vets.
| Lender | Starting rate | Amount | Term | Time in business | |
|---|---|---|---|---|---|
|
10.00% | Up to $5M | Up to 300 months | 3 years | |
|
Not specified | $5k – $150k | 24 – 60 months | 6 months | |
|
13.00% | $5k – $1.5M | Up to 18 months | 6 months | |
|
32.72% | $5k – $250k | Up to 24 months | 12 months | |
|
3.00% | $2k – $250k | 6 – 24 months | 12 months |
Best loans for veterinarians at a glance
Best for: Acquiring a practice – Live Oak Bank
- Every borrower is connected with a dedicated business analyst
- Has a veterinarian (DVM) on staff
- Also offers business checking and savings accounts
- Must apply through a loan officer
- Limited customer support hours
If you want a lender that’s familiar with veterinarians’ needs for your business acquisition loan, consider Live Oak Bank. The bank started solely as a veterinary lender and the bank even keeps a vet on staff to help educate borrowers who intend to become future practice owners.
At the same time, though, Live Oak Bank chooses not to publish its eligibility criteria, which makes it difficult to know if you’ll qualify for a loan. In addition, unlike most lenders, you can’t apply for a loan online. You’ll need to speak to a loan officer to get started.
Read our full Live Oak Bank review.
In order to qualify, you’ll need to meet Live Oak Bank’s criteria of:
Minimum credit score: 650
Minimum time in business: 3 years
Minimum annual revenue: $250,000
Best for: Equipment financing – National Funding
- Next-day funding
- Early payoff discounts available
- No down payment required
- High annual revenue requirement
- Low maximum loan amount
- Doesn’t disclose interest rates
If you need to buy an x-ray machine or another piece of specialty equipment, consider National Funding. The company offers equipment financing loans up to $150,000.00, with no down payment required. Plus, you can take advantage of next-day funding and its unique early payoff discount.
Still, National Funding’s maximum loan amount is lower than other lenders on this list, and you’ll need to bring in at least $250,000 per year to qualify for one of its loans. Plus, the company doesn’t disclose its interest rates for equipment financing, which makes it hard to tell how much you’ll pay.
Read our full National Funding review.
In order to qualify, you’ll need to meet National Funding’s criteria of:
- Minimum credit score: 600
- Minimum time in business: 6 months
- Minimum annual revenue: $250,000
Best for: Bad credit – Fora Financial
- Low minimum credit score requirement
- Offers an early payoff discount
- Provides an option to borrow more if needed
- High annual revenue requirement
- Charges an origination fee
If you need a bad credit business loan, Fora Financial could be a good option. The company only requires a 570 credit score to qualify. Once you’re approved, you may also be given the option to borrow more after paying down a certain portion of the loan amount.
That said, Fora Financial does charge a rather steep origination fee, which can add up to 3.00% of the loan amount.
Read our full Fora Financial review.
Best for: Same-day funding – OnDeck
- Same-day funding available in certain locations
- Lower minimum credit score requirement
- Offers both term loans and lines of credit
- Requires a UCC filing and a personal guarantee
- Charges an origination fee
- Higher-than-average interest rates
When you need same-day funding, think about choosing OnDeck. This lender offers short-term business loans up to $250,000.00 and promises to have funds in your account the very same day for loans up to $100,000 as long as you have your paperwork in before 10:30 AM ET. Even for loans that don’t qualify for same-day funding, OnDeck generally funds within two to three days.
This lender also shines because it accepts fair credit scores as low as 625, making it a viable option for many borrowers.
Yet, borrowing from OnDeck may not be the most affordable option. The company’s business loan interest rates are higher than many of its competitors and they charge an origination fee worth up to 4.00% of the loan amount. What’s more, you’ll have to agree to submit a general lien on your business assets and a personal guarantee.
Read our full OnDeck review.
Best for: Lines of credit – Bank of America
- Low annual revenue requirement
- Shorter time in business requirement
- May lend you more than advertised if your business qualifies
- Each draw counts as a separate loan
- Each loan requires collateral and a personal guarantee
- High late payment fees
Those who need flexible funding may want to consider the American Express Business Line of Credit. A business line of credit works similarly to a credit card, allowing you to borrow money as needed. In particular, American Express’s option features lenient eligibility requirements, including just $36,000 in annual revenue and a 12 months business history.
However, you should also know that each draw is considered a separate loan and each loan requires both collateral and a personal guarantee. You can choose the terms of your loan when you make a draw, and make either a single repayment or repay it over 6 to 24.
In addition, the company’s late payment fees are pretty hefty, escalating up to $100 per late payment.
Read our full American Express Business Line of Credit review.
6 types of veterinary business loans
Bank loan
Many banks have specific programs for veterinary practices, including large traditional banks like Bank of America and online banks like Live Oak Bank, which was founded solely as a veterinary lender.
However, keep in mind that traditional bank loans can be difficult to obtain, especially for startup business owners because they often have strict qualifying requirements. Community banks and online lenders are often more likely to take a chance on newer businesses.
SBA loan
The Small Business Administration (SBA) isn’t a direct lender — instead, it guarantees loans made by banks and credit unions. Under the Small Business Jobs Act, the SBA guarantees up to 90% of a loan. Two popular SBA programs include the SBA 7(a) loan, which offers businesses working capital, and the SBA 504 loan program, which is used to purchase real estate and heavy machinery.
Business line of credit
As stated above, a business line of credit works similarly to a credit card, allowing you to borrow money up to a set limit. You’ll also only pay interest on the amount that you borrow and, as you pay down your balance, your limit resets, so you can borrow against it again. This type of funding is useful for covering smaller, ongoing expenses rather than a large one-time purchase.
Equipment loan
Some banks have loans specifically intended to purchase new equipment. The equipment you buy serves as collateral for the loan, which means lending requirements might be more lenient than other types of loans. Equipment loans are available from both brick-and-mortar banks and from online lenders
Business credit card
For small purchases of inventory or supplies, having a business credit card can be a quick and easy way to finance what you need over the short term. To boost your credit score, do your best to pay off your balance in full each month.
Tips for taking out veterinary loans
- Don’t borrow more than you can afford. In deciding how much you can afford to borrow, review your loan offer and find out what the monthly payment is likely to be and compare it with your income and expenses.
- Make sure your budget includes expenses for you and your family. While your work as a veterinarian is based on your love of animals, it is also a job. That means the budget for your new practice must include a reasonable wage for yourself. Take into consideration the income your family requires for food, clothes, transportation, shelter and other needs, including saving for retirement.
- Understand the impact of student loans. The amount you can borrow is based on a number of factors, including the income the business generates. It’s also based on your credit rating and other business and personal debt you may have, including student loans. Lenders may look at your personal credit, cash reserves you may have, collateral and expected business cash flow — or existing cash flow if you’re buying an established practice.
- Be specific. Loan terms vary based on how the money you borrow will be used. Different rates and terms will be available for funding new equipment than buying and improving real estate. Your lender will need to know exactly what you are doing with the money you borrow and will offer the best terms it can under those circumstances.
Resources for veterinarians
Resources for veterinarians interested in starting or expanding a practice include:
American Veterinary Medical Association (AVMA) — The AVMA offers personal finance resources, as well as information on the industry’s economic climate.
Vet Partners — Vet Partners’ membership is made up of consultants who specialize in providing everything from IT services to marketing advice to veterinarians and their practices. These consultants could help you set fees, handle your financial statements and review your overall financial health.
Veterinary Hospital Managers Association (VHMA) — Aimed at veterinarians as well as administrators, office managers and consultants, VHMA provides education, certification and networking opportunities to those who run veterinary hospitals and clinics.
Our methodology: How we picked the best loans for veterinarians
We reviewed more than 22 lenders to determine the five best loans for veterinarians overall. To make our list, lenders must meet the following criteria:
- Veterinary focus: We highlighted lenders who specialize in loans for veterinarians first.
- Minimum time in business: We chose lenders that are friendly to startup practices, with short time in business requirements.
- Minimum credit score requirement: We opted for lenders with minimum credit score requirements of 660 or lower.
- Rates and terms: We prioritized lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
- Repayment experience: For starters, we considered each lender’s reputation and business practices. We also favored lenders that report to all major credit bureaus, offer reliable customer service and provide unique perks.