Doctors frequently run into two problems when applying for working capital loans at large banks:
- High approval standards: Banks often have stringent requirements that mean many doctors struggle to qualify, despite having a high net worth, strong revenue, and good credit. That’s why we advise choosing a lender that uses a common-sense underwriting approach and doesn’t rely on rigid approval criteria.
- Last-minute rejections and complications: Banks typically take 60 to 90 days to underwrite and approve loans. It’s common for applicants to find themselves two or three months into the process before learning they’ve been rejected, leaving them to start all over again with another lender. We recommend partnering with a lender that funds quickly and can tell if you qualify soon after applying.
In this guide, we review how Redline Capital’s working capital solutions solve these problems and help doctors secure affordable financing quickly, with simple qualification criteria.
Apply for a working capital loan with Redline Capital and get funded the same day with just four months of bank statements.
| Funding Features | Redline Capital Terms |
| Loan amounts | $30,000 to $2 million |
| Minimum credit score | 600 |
| Minimum time in business | 12 months |
| Minimum monthly revenue | $30,000 |
| Collateral or cash reserves | None required |
| Paperwork requirements | Just a 4-month bank statement |
What You Need to Qualify for a Working Capital Loan: 3 Key Factors
One of the main struggles doctors face when applying for working capital loans through banks is the strict criteria. This includes strong profit margins, near-perfect personal credit, explosive growth, collateral, cash reserves, and more.
All these requirements make it difficult to qualify and leave the door open to last-minute rejections because the bank must underwrite all requirements before giving you a yes or no, which takes months.
If they discover a problem three months into underwriting, for example, you would have wasted three months waiting for approval and have to start over with a different lender.
To avoid last-minute rejections, consider a revenue-based financing provider like Redline Capital.
Revenue-based financing means the entire underwriting process is focused on the revenue your practice generates, rather than on all the other factors banks consider. This makes it much easier to qualify. For instance, Redline Capital only has three requirements for doctors:
- Generate $30,000 per month or more in revenue.
- Be in business for 12 months or more.
- Be based in the U.S.
This simplified criteria allows us to finish underwriting in a few hours and give you a concrete yes or no soon after you apply — reducing the likelihood of last-minute rejections. You don’t have to wait months for a concrete answer like with other lenders.
How to Apply for a Working Capital Loan
With banks and large lenders, you can expect to receive your funds 60 to 90 days after you apply. The approval and funding timeline is so long because of all the paperwork they require and must underwrite. This typically includes:
- Personal and business tax returns (usually last 2–3 years)
- Profit and loss statements
- List of owned or leased medical equipment
- Summary of payroll and debt obligations
- Business plan and loan purpose statement
- Patient volume reports
- Revenue projections and growth forecasts
At Redline Capital, however, we designed our application and underwriting process to be as fast and lightweight as possible. We just need a four-month bank statement, and borrowers can receive funds on the day they apply.
Here’s what the entire application process looks like:
- Upload four months of bank statements.
- We underwrite your application and notify you within an hour or two whether you qualify and what offers you’re eligible for.
- Once you choose an offer that fits your needs, let us know, and we will wire the working capital loan into your business bank account immediately.
- You can use the working capital loan for anything you need. We place no restrictions on what you can use it for.
How to Choose the Right Financing Partner and Secure the Best Possible Interest Rates
Choosing the correct financing partner matters because it can mean the difference between securing affordable rates and getting stuck in expensive business loans that your medical office can’t support.
Here’s our 3-point lender checklist that can help you secure the best possible interest rates:
- Are they a direct lender or broker?
- Do they pressure you into accepting offers or do they give you time and space?
- Do they have experience working with doctors or other medical professionals?
1. Are They a Direct Lender or Broker?
Many borrowers are hesitant to partner with brokers. They want to go directly to the source of their funds and avoid additional fees.
While there is merit to that, applying with a high-quality broker like Redline Capital can actually help you secure better offers than when you apply directly to a lender.
That’s because brokers like ourselves have sent a lot of business to lenders over the years, which helped them grow and get to where they are today. In fact, we’ve generated over $100 million in business loans for lenders like On Deck, Credibly, and Headway Capital, among others.
In exchange for this and as an incentive to continue bringing in more business, these lenders offer our applicants preferred pricing, discounted rates, and larger loan amounts — benefits they do not offer to direct applicants.
As a result, we recommend choosing a high-quality broker for your working capital loan, as you can leverage the business they have generated to secure better offers from lenders.
Read more: 5 Quickest Business Line of Credit Providers & How to Choose One
2. Do They Pressure You Into Accepting Offers?
A clear sign that a lender doesn’t have your best interests at heart is when they pressure you to accept an offer through constant calls and emails.
We’ve heard some unbelievable stories from borrowers who applied with the wrong lender, then got hounded with calls to accept quickly and “lock in the deal” before it supposedly expired. These types of pressure tactics are typical among low-quality lenders. They claim you’ll “miss out” or “lose funding forever” unless you act right away.
These offers are almost always expensive short-term business financing with steep monthly payments.
Instead, we strongly recommend reading independent online reviews from borrowers to hear what their experience was like. Choose lenders that are professional and don’t put any pressure on you to accept.
When you team up with Redline Capital, we send you a range of offers and let you decide. We never pressure borrowers to accept offers.
Here’s what borrowers say about their experience with Redline Capital:
Hear directly from our borrowers by visiting our case studies page:
3. Do They Have Experience Working with Doctors?
It’s something many borrowers overlook, but we always recommend partnering with a lender who knows your industry.
That’s because every business has certain traits that might look like weaknesses to those on the outside but are completely normal within the industry. For medical professionals like doctors, these include lengthy claim processing times from insurers, which can create the impression of slow or inconsistent payment cycles. But it’s normal because insurers take weeks or even months to verify claims and release payment.
Lenders without healthcare industry experience may view this as a weakness specific to your business and charge higher interest rates and fees.
At Redline, we’ve been working with doctors and other healthcare professionals like dentists, chiropractors, and veterinarians for the past 10 years.
We understand that insurance reimbursements can take months, and as a result, we won’t charge higher rates for this. We can even work with you to customize the repayment plan around your cash flow cycles and unique needs.
Warning Signs of a Predatory Loan Offer
Hidden Fees with No Clear Repayment Amount
Watch out for offers that aren’t transparent about the total repayment amount because they are often filled with hidden origination fees, administrative fees, and balloon payments.
It’s also common for low-quality lenders to disguise their expensive interest rates with short terms. For example, they may say they only charge a 10% rate, but then the repayment term is just 3 months, and the actual APR is over 80%.
That’s why, when reviewing an offer, you should make sure it clearly states the total loan amount, the total amount you need to repay, and the timeframe for repayment.
Predatory Contract Clauses
It’s also important to consider whether the offer requires collateral.
That’s because, while not all business loans that require collateral are bad, a common predatory lending tactic is to offer expensive, short-term financing secured by assets like medical equipment or commercial real estate. Then, when the borrower inevitably defaults, the lender claims and liquidates the collateral.
To avoid this, choose a lender that doesn’t require collateral and has affordable rates and long repayment terms.
Secure Affordable Working Capital Loans with Redline Capital
Send us a four-month bank statement and we’ll get back to you with offers that can close as soon as today or tomorrow.
Frequently Asked Questions
What type of medical practice loan is best for me?
The type of medical practice that’s best for you will depend on several factors, such as the speed at which you need the funds. For fast capital, revenue-based financing is typically the best financing option. They can fund in just a couple of days, while most lenders take 60 to 90 days.
What are the eligibility requirements for SBA 504 loans?
SBA (Small Business Administration) 504 loans require businesses to be worth $15 million or less, have an average net income below $5 million, and be based in the U.S. You can apply by submitting paperwork such as a business plan, tax returns, balance sheets, and other project-related documents. SBA 504 loans are typically funded within 60 to 90 days of application.
How can doctors use working capital loans to manage cash flow in their practices?
Working capital loans are typically used to pay for short-term expenses and day-to-day operations. Doctors can pay staff, hire new staff, buy supplies and equipment, run marketing campaigns, and more while waiting for revenue to come in. But keep an eye out for whether your lender imposes any restrictions on how you can spend your loan, as some lenders may limit its use to certain expenses.
What credit score do you need for a doctor loan?
Most banks and traditional lenders require doctors to have a credit score of at least 720. That’s because these lenders are very risk-averse and only want to lend to doctors with a near spotless payment history. However, at Redline Capital, we designed our requirements so that doctors with almost any credit profile can qualify. We can fund doctors with a credit score as low as 600.
Can I get a $30,000 loan with bad credit?
While it is technically possible to secure a $30,000 loan with bad credit, in reality, most banks are hesitant to lend that kind of money without a crystal clear repayment record. To offset the additional risk, banks may require a minimum monthly revenue of $60,000 to $100,000 to demonstrate you can repay the loan.
Which bank gives a loan easily?
While some banks offer loan programs with easier qualification criteria, such as Citi and Wells Fargo, they still require strong credit, collateral, and cash reserves. Instead, we recommend borrowers apply with a revenue-based financing company like Redline. Unlike most banks, the main requirement for revenue-based financing is monthly revenue. At Redline Capital, our monthly revenue requirement is $30,000.
What are the disadvantages of working capital loans?
The main disadvantage of working capital loans is that businesses have short repayment periods, typically 6 to 24 months. This is why it’s essential to use working capital loans to pay only for urgent, short-term expenses needed to keep your business operational (e.g., payroll, rent, inventory).
See What Rates and Terms You Qualify for with Redline Capital
Forward us a four-month bank statement demonstrating your practice’s revenue, and we’ll send you multiple working capital loan offers you qualify for so you can easily compare your loan options. This includes working capital loans, term loans, business credit cards, equipment financing, and SBA loans.