CFACommercial Funding Advisory
Healthcare business

Healthcare

Business Funding for Veterinary Clinics

Veterinary clinics are expensive to start and equip, with a typical new clinic costing $500,000 to $1.5 million for buildout, equipment, and working capital. Digital X-ray, surgical suites, dental stations, and lab equipment are all necessary from day one. Practice acquisition has become extremely competitive as corporate consolidators like Mars and NVA bid up valuations to 7 to 10 times EBITDA.

Common Uses

What Veterinary Clinics Use Funding For

  • Purchase digital radiology, ultrasound, and in-house lab analyzers like IDEXX or Abaxis systems
  • Build out surgical suites, dental stations, and isolation wards
  • Acquire an existing veterinary practice from a retiring veterinarian
  • Hire associate veterinarians and veterinary technicians to expand appointment capacity

Funding Options

Best Funding Types for Veterinary Clinics

Veterinary Practice Loan

Specialty lenders like Live Oak Bank and Solvet Capital focus on veterinary practices and understand the specific economics of veterinary medicine. They fund acquisitions, startups, and expansions with terms specifically designed for vet clinic cash flow.

Equipment Financing

Finance imaging systems, anesthesia machines, surgical tables, and dental units separately. Veterinary equipment has strong residual value and equipment-specific lenders can close faster than SBA for individual purchases.

SBA 7(a) Loan

The standard path for buying or starting a veterinary clinic. SBA loans can cover the full purchase price of an acquisition including goodwill, or fund a startup buildout with enough working capital to reach profitability.

What Lenders Look For

Qualification Notes for Veterinary Clinics

A DVM degree with an active veterinary license in the practicing state is the fundamental requirement
Practice acquisition loans are underwritten on the target practice's historical financials, so due diligence on the books is critical
Emergency and specialty clinics generate higher per-visit revenue and are viewed favorably by lenders compared to general practice

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