CAPITAL · REVOLVING CREDIT
Lines of Credit
A revolving line of credit is the lowest-cost working capital most operators can access. It takes longer to close than MCA and demands cleaner documentation, but it prices in the high single digits to low teens rather than the high-teens-plus of revenue-based products. When your P&L and books support it, this is the line we recommend first.
Typical terms
| Parameter | Typical range |
|---|---|
| Facility size | $25K – $500K+ |
| Structure | Revolving, drawn as needed |
| Pricing | Prime + margin; all-in APR typically single digits to mid-teens |
| Minimum time in business | 2+ years |
| Documentation | Two years’ business and personal returns, YTD P&L, bank statements |
What qualifies a strong LOC candidate
- Clean QuickBooks or equivalent books with consistent monthly close.
- Two full years of filed business returns.
- Positive trailing-12 net income.
- FICO 680+ on the primary guarantor.
If your books aren’t there yet, ask about our Bookkeeping engagement — we’ve taken clients from “unbankable” to a funded LOC inside of a single quarter.
Frequently Asked Questions
What is a business line of credit?
A business line of credit gives your practice access to a set amount of funds that you can draw from as needed, similar to a credit card but typically with lower interest rates and higher limits. You only pay interest on the amount you use, and as you repay the balance, those funds become available again. This makes it ideal for managing cash flow fluctuations.
How is a line of credit different from a term loan?
A term loan provides a lump sum with fixed monthly payments over a set period. A line of credit is revolving — you draw funds when you need them and repay on a flexible schedule. Term loans work better for large, one-time expenses, while lines of credit are better suited for ongoing working capital needs, seasonal fluctuations, and unexpected expenses.
What credit limit can a medical practice expect?
Credit limits for medical practices typically range from $25,000 to $500,000 or more, depending on your practice’s revenue, time in business, credit history, and financial strength. Established practices with strong revenue and clean credit profiles often qualify for the highest limits. Practice Management Consultancy helps you find lenders who offer the most competitive terms for your situation.
When should a medical practice use a line of credit?
Common uses include covering payroll during insurance reimbursement delays, purchasing supplies in bulk at a discount, funding marketing campaigns, handling unexpected repairs or equipment replacements, and managing seasonal revenue dips. Having a line of credit established before you need it ensures funds are available when time-sensitive opportunities or challenges arise.