Capital Solutions for Medical, Dental, & Veterinary Pactices
Grow Your Health & Pet Care Business with Haro
Running a successful outpatient medical practice, dental clinic, or veterinary practice requires more than just medical expertise—it demands effective financial management and the ability to scale. With healthcare spending in the U.S. projected to grow to $6.2 trillion by 2028, opportunities for expansion and investment in these industries have never been greater.
At Haro, we specialize in offering tailored debt and equity financing options to meet the unique needs of these practices. Whether you’re looking to upgrade your facilities, invest in state-of-the-art medical technology, or grow through acquisition, Haro provides the financial solutions you need to thrive.
Debt Financing Options for Medical, Dental, and Veterinary Practices
Asset-Based Loans
For practices with significant investments in equipment, real estate, or other assets, asset-based loans (ABL) are a reliable financing solution. This type of loan allows healthcare practices to use these assets as collateral to access working capital, helping to fund day-to-day operations or make long-term investments in new equipment or expansion projects.
SBA Loans
SBA 7(a) and SBA 504 loans are excellent financing options for small to mid-sized practices. SBA 7(a) loans offer flexibility for working capital, equipment purchases, and refinancing debt, while SBA 504 loans provide long-term, fixed-rate financing for large capital expenditures such as new buildings or equipment upgrades. Both are well-suited for outpatient medical, dental, and veterinary practices looking to grow sustainably.
Lines of Credit
For practices that need quick access to working capital, a line of credit offers flexible, revolving credit that can be used for payroll, purchasing supplies, or managing cash flow fluctuations. This option is particularly helpful for practices that deal with seasonal fluctuations in patient volume or experience delayed reimbursements from insurance providers.
Term Loans
Term loans provide a lump sum of capital for major investments, such as opening a new office, upgrading facilities, or acquiring new technology. Practices in all three industries can benefit from the predictable repayment schedule and fixed interest rates offered by term loans, making long-term financial planning easier.
Equipment Financing
Medical, dental, and veterinary practices often require expensive equipment to provide high-quality care. Equipment financing allows practices to acquire new tools, technology, and diagnostic equipment without having to deplete their cash reserves. This type of loan is specifically designed for equipment purchases, offering favorable repayment terms.
Equity Financing and Expansion
M&A activity in the outpatient medical sector has been driven by the growing demand for accessible healthcare services. As private equity firms target this space for consolidation, medical practices are increasingly joining larger networks to improve efficiencies, expand their service offerings, and gain access to cutting-edge technology. In 2023, M&A in the healthcare sector reached $400 billion, with outpatient medical practices seeing a significant share of that activity. Practices can leverage growth equity or consider strategic mergers to align with larger healthcare groups, allowing them to scale operations while maintaining high-quality patient care.
The dental industry has also seen a surge in M&A activity, particularly with the rise of dental support organizations (DSOs). DSOs acquire practices and centralize administrative functions, freeing dentists to focus on patient care while improving profitability. With private equity involvement increasing, valuations for dental practices have climbed, making it an opportune time for dentists to explore business exits or minority divestitures. Practices looking for expansion capital can benefit from growth equity, allowing them to increase their patient base, invest in cutting-edge equipment, or open new locations.
The veterinary industry has experienced a wave of consolidation as corporate groups seek to acquire independent practices. Veterinary care has become a $32 billion industry, and private equity firms are aggressively investing in veterinary clinics due to the growing demand for pet healthcare services. For veterinary practices, business exits or strategic mergers can provide an opportunity to capitalize on high valuations while ensuring the continued growth of the practice. Whether looking to expand or sell, veterinary practice owners can explore equity financing options that align with their long-term goals.
Haro helps practice owners navigate these equity financing options, providing access to the right capital partners to ensure that their businesses can scale, innovate, and succeed.
Ready to Grow Your Practice?
Partner with Haro to unlock financing solutions that will take your practice to the next level. Apply today and let us help you find the capital you need to achieve your business goals. Get started now!