Navigating the Myths of Business Financing | | Published: Issue 2 2024

Editor's Pick

Finding financing and partnering with the right lender can be a challenge for even the most experienced business owner. provides a simple, one-step process that connects you to industry-leading veterinary lenders and simplifies the lending application process. Our main goal is to help veterinarians quickly connect with a nationwide network of veterinary specialty lenders. is also dedicated to educating veterinarians about financing and growing their businesses. In this article, we will explore 5 common myths that pop up in the financing process, explain the reality, and offer’s solution. 

Myth #1: You Need Low Debt and a Perfect Credit Score to Get Financing.

Reality: While a good credit score is beneficial, many financing options exist for veterinarians with varying credit histories. Experience, production ability, type of project, and certain types of business loans prioritize different factors beyond just credit scores. Moreover, some lenders offer flexible repayment plans and tailored loan products designed specifically for veterinarians, which take into account the unique financial circumstances and earning potential associated with the profession. These options can include lower initial payments, extended terms, and even interest-only payment periods to ease the financial burden during the early years of practice establishment or expansion. Although high consumer debt (credit cards, revolving accounts, car loans) can be a big negative, specialty lenders understand student loans are part of the process of becoming a veterinarian and will not deny your loan request because of them.

Myth #2: You Must Have a Detailed Business Plan to Secure Financing.

Reality: While a solid business plan can be helpful in certain situations, it’s not always a strict requirement. Some lenders and investors may be more interested in your practice, market potential, or financial projections rather than an extensive business plan. A quick rule of thumb to remember is a lender will only finance a loan for a practice that can comfortably sustain the monthly payment. A practice with good profitability has better odds of approval versus the opposite. If you are forming a start-up or looking to grow an existing practice, it’s important to focus on demonstrating the viability and scalability of your business idea. Emphasizing strong financial health and clear, realistic growth projections can be more persuasive than a lengthy business plan. Additionally, showcasing a proven track record of patient satisfaction and effective practice management can further bolster your case to potential lenders and investors.

Myth #3: A Lender is a Lender, Whether it be Your Local Bank or Some Specialty Lender.

Reality: Most local banks are asset-based lenders and require a substantial amount of collateral to secure the loan.  When faced with financing a sale that might only have 25% of its purchase price in tangible assets (equipment and inventory) for collateral the loan may be denied by your local bank or at best approved but with additional required collateral such as your home or a family co-signer.  Veterinary specialty lenders are cashflow lenders.  They recognize that the cash flow produced by the practice is the source of payment for the loan. They also understand that veterinarians historically have less than a 3% default rate making them a great borrower.  The key is to know how to easily reach these veterinary specialty lenders and avoid the headaches of a less experienced lender. By applying at your application is shared directly with lenders specializing in veterinary lending. They are experienced lenders who know exactly what to expect and look for when financing your project. 

Myth #4: Personal Savings Should be The Primary Source of Startup Capital

Reality: While investing your own money into your business is wise, relying solely on personal savings can limit your growth potential. Often it’s hard to come up with a large enough down payment if you haven’t previously been an owner. Veterinarians can take advantage of various financing options, such as small business loans, lines of credit, or refinancing opportunities. Using these can complement your personal investment and provide the necessary capital to scale your operations. Don’t miss out on a great ownership or investment opportunity because you are worried about saving up the right amount of savings. 

Myth #5: Financing is Only Necessary at the Beginning

Reality: Financing needs often continue beyond the startup or purchase phase. Businesses require capital for various purposes such as expansion, hiring, inventory, marketing, new equipment, and unforeseen expenses. For example, keeping your inventory well-stocked and up-to-date with the latest veterinary supplies and equipment can be capital-intensive, and effective marketing strategies are essential to attract and retain clients. Additionally, unexpected expenses, such as emergency repairs or sudden economic downturns, can arise, necessitating readily available financial resources. Understanding your ongoing financing needs and maintaining access to different funding sources is crucial for long-term success.  That’s why choosing a good lender for the long haul is so important. Establishing a strong relationship with a reliable lender can provide the financial stability and flexibility needed to navigate these challenges and seize new opportunities. By applying through you will get connected to select lenders who understand your goals for long-term success.  

Financing your dream practice, whether it be a new start-up or an acquired established practice is going to involve a lender in most situations.  Finding the right lender and sorting out the wrong ones can be a tedious task.  You can either use a search engine like Google and try to find them on your own, often with a volley of phone tag, or worse yet, initially connecting with the wrong division or person at the bank. A better option would be using’s search service which has pre-screened the best lenders and connects you with the right lender, and the right representative.  By choosing we’ve simplified this process and have helped hundreds of veterinarians connect to the right lenders. Visit and start your application process today!

Sponsored Content

Images courtesy of

Become a member to receive articles in our quarterly publication!