Financing Your Veterinary Clinic: Legal Considerations and Options

Many veterinarians dream of owning their own clinic. There are many advantages to owning a veterinary clinic, including professional autonomy, financial gain, and personal freedom. However, most people don’t have the funds available to start a veterinary clinic. Therefore, in most cases, outside financing is required. In this article, we discuss some options for financing your veterinary clinic. 


As discussed above, self-financing isn’t an option for most people. Unfortunately, high upfront costs make it extremely difficult for most people to finance a veterinary practice. However, this is a great option for those with the means to pursue it. The advantages of self-financing include:

  • No debt obligations
  • Increased control
  • Reduced risk
  • No interest costs

SBA 7(a) Loan

The SBA 7(a) loan, which is offered by the US Small Business Administration (SBA), provides financial assistance to small businesses with various financing needs, including business expansion, working capital, debt refinancing, startup capital, and equipment and inventory.

SBA 7(a) loans are provided through a network of approved lenders, such as credit unions and banks. In addition, the SBA guarantees a part of the loan, which reduces the risk taken on by lenders and makes it easier for small businesses to qualify. The advantages of SBA 7(a) loans include:

  • Flexible terms
  • Competitive rates
  • Low down payments

Bank Loan

Another option for financing a veterinary practice is a bank loan. In fact, some banks offer loans that are specifically geared towards starting or purchasing veterinary practices. The rates and terms for bank loans tend to be higher than SBA loans, but this varies based on several factors, such as the lender and the financial position of the applicant. In addition, banks often look favorably on veterinary borrowers because veterinary practices tend to be stable businesses. There are several advantages to using a bank loan to fund a veterinary practice, including:

  • Flexible terms
  • Competitive rates
  • Loan customization 


Finally, a veterinary practice partnership is a business arrangement in which two or more veterinarians join together to open, own, and operate a veterinary practice. A partnership can take many forms, and the legal structure and terms are dependent upon the preferences and needs of the partners. Although this isn’t actually a financing option, starting a partnership can make it easier to secure funding. However, successful partnerships require mutual trust, a shared commitment to the practice, and shared goals. Therefore, it’s important that all partners be on the same page before moving forward with this option. Advantages of entering a partnership to start a veterinary practice include: 

  • Ease of financing
  • Capital access
  • Shared risk

Contact Our Experienced Veterinary Lawyers 

These are just a handful of the financing options for starting a veterinary practice. For a complete list of options that may work for you, you should contact an experienced veterinary lawyer. At Mahan Law, our veterinary professionals will evaluate your needs and formulate a financing strategy that gives you and your practice the greatest chance of success. Please contact us today to arrange a consultation with a talented veterinary attorney.