How to Qualify for Veterinary Financing on Your Own

We often talk to women veterinarians who are unsure if they will be able to qualify for financing, especially without a co-signer or partner in the deal. With little money to put down and often high student debt, practice ownership seems inaccessible.

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However, this is not the case! Depending on the situation, we often encourage a first-time practice owner to put the practice only in her name. Becoming a business owner and practicing medicine at the same time can bring a lot of stress, and in some cases, partnerships create more stress. So, what does a lender consider when qualifying someone for financing?

Your lender will look at the full financial landscape, including both the business’s finances and your personal finances. If you plan to purchase an existing vet practice, the bank will look at the cash flow of that business. The lender wants to know the practice is bringing in enough money to cover the business expenses, business debt and your salary. When determining your salary, student debt payments should be taken into account to ensure the practice can support our lifestyle.

When preparing for ownership, do not let student debt hinder you. Instead, focus on protecting you personal credit by paying bills on time and avoiding unnecessary or lavish purchases that require opening a credit card. Filing for bankruptcy will make qualifying for financing very difficult and should be avoided at all costs. If your personal credit and the practice’s financials are strong, you will be in a good position to purchase the practice on your own!

Take a look at this example:

veterinary financing


In this example, the monthly payment equals $13,800*. When you add together the yearly loan payment and the owner’s salary, the practice still had excess earnings of $123,000.

As you approach ownership, it may be helpful to work with an industry consultant to find the practice that matches your style of medicine and meets your financial needs.

If you have questions about financing or the process, don’t hesitate to ask!

*Each business, and business owner’s situation, is unique, we evaluate the rates on a loan-by-loan basis. Your specific rate and terms will be solidified in a loan proposal once this evaluation is complete. Monthly payment amount in this example is based on the Live Oak Bank loan terms plus the seller carry note terms.