Path 03 of 08

Financing Your Practice

How healthcare practice financing actually works. SBA programs, BDC and CSBFP in Canada, equipment financing, lender relationships, DSCR, covenants, and the lender perspective.

Healthcare practice financing has its own ecosystem — specific programs (SBA in the US, BDC and CSBFP in Canada), specific lender expectations around DSCR and covenants, and specific equity injection requirements. This path covers how practice financing actually works from the lender's perspective so you can structure a request that gets approved on favourable terms.

Sequenced Reading

The path, in order

Step 01

What Lenders Actually Look at in Clinic Financing

The lender's perspective on healthcare practice loans. Cash flow analysis, collateral review, character assessment, and the framework lenders apply to evaluate a practice loan request.

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Step 02

The Three Capital Stack Structures Most Clinic Startups Use

How startup capital is typically assembled across equity, commercial debt, and equipment financing. The three patterns most healthcare practice startups use.

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Step 03

How CSBFP Works for Canadian Clinic Operators

The Canada Small Business Financing Program details, eligibility, what it covers, and how it's used in healthcare practice startups and acquisitions.

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Step 04

How SBA Loans Work for Clinic Operators in the US

SBA 7(a) and 504 program structure, eligibility, terms, and how the two programs are used in combination for healthcare practice financing.

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Step 05

BDC and Chartered Bank Financing for Canadian Clinics

How BDC works alongside chartered bank lending for Canadian healthcare practices. Program differences, typical structures, and when each lender is the right fit.

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Step 06

Equity Injection Requirements for Canadian Healthcare Practice Loans

What equity injection means, how lenders verify it, what counts as acceptable equity sources, and the typical equity-to-debt ratios required for practice loans.

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Step 07

Debt Service Coverage Ratio in Healthcare Practice Lending

How DSCR is calculated, what target ratios lenders expect, how DSCR is stress-tested under conservative assumptions, and how to think about DSCR when planning a practice.

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Step 08

Loan Covenants in Healthcare Practice Financing

Financial covenants, operational covenants, reporting covenants, and what happens if covenants are breached. The loan terms that affect practice operations after closing.

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Step 09

How to Think About Refinancing a Clinic Loan

When refinancing makes sense, what to consider before approaching a new lender, and how the refinance decision interacts with the broader practice financing structure.

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Step 10

How to Read a Commercial Loan Term Sheet

The components of a commercial loan term sheet, what's negotiable vs. fixed, the items that matter most for practice operators, and the questions to ask before accepting terms.

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After You've Read the Path

Tools for financing decisions

The Capital Structure Tool models four financing scenarios. The Refinance Calculator analyzes whether refinancing existing debt makes sense. The Cost Estimator helps you size your project before approaching lenders.

Open Tools Hub →