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Guide · October 2026
Can a medical practice get funding with bad credit?
Yes. MedStream Capital has no minimum credit score on working capital or a line of credit — we underwrite four months of your practice’s bank deposits instead, with a floor of $15,000 a month and 6 months in business. Bad credit does close the partner products: a term loan needs a 600+ personal FICO and SBA 7(a) needs 680+.
Soft pull·No impact on personal credit·4-minute application·No patient data requested
What we read instead of your score
On working capital and a line of credit, MedStream Capital reads four months of business bank statements and five things in them: average monthly deposits, the number of deposits per month, the lowest daily balance, negative days, and whether an undisclosed advance is already being debited. We do not pull tax returns and we do not score you on personal FICO.
The way we put it on our own product page: a practice with a 580 personal score and $200,000 a month in clean deposits is a better file to us than a 760 score on $18,000 a month, and we price it that way. Your pricing depends on deposits, time in business and payer mix, and it is set at underwriting.
Applying does not hurt your score. We run a soft pull at application, and any hard pull happens only with separate written consent before funding.
What actually gets a file declined
Credit is not on the list. We publish the most common decline reasons, in order:
- An undisclosed existing advance or loan found in the bank statements.
- Average monthly deposits below the $15,000 minimum.
- Fewer than 6 months of operating history.
- Strong deposits, but a negative-day count showing the account is run to zero every cycle.
We will tell you which one applied to your file.
What you’ll need
- Four months of business bank statements
- Business legal name, EIN, address and entity type
- Owner name, date of birth and SSN for the soft pull
- An active state professional or facility license
- A U.S. business checking account in the practice’s legal name
- Every open advance or loan, disclosed up front
No tax returns and no P&L on in-house products.
Credit by product
Which products stay open with a low score.
| Product | Minimum personal FICO | Other floors | Underwritten by | Speed |
|---|---|---|---|---|
| Working capital | None | 6 months, $15,000/mo deposits | MedStream Capital, in-house | Funded 24 hours after signing |
| Line of credit | None | 6 months, $20,000/mo deposits | MedStream Capital, in-house | Draws settle next business day |
| Claims factoring | Sized on billed claims, not your credit | $50,000+/mo in billed receivables | Specialist partner, under a BAA | 7 – 14 days to set up |
| Term loan | 600 | 24 months, $25,000/mo, two years of returns | A partner bank | 2 – 4 weeks |
| SBA 7(a) | 680 (700+ for better pricing) | 1.25× DSCR, three years of returns, 10% injection on an acquisition | A partner bank | 60 – 120 days |
What bad credit changes, and what it doesn’t
A low score does not change the in-house criteria. It does change which doors are open. A partner term loan or SBA note is almost always cheaper than an advance, but those thresholds belong to the partner bank, and a score under 600 rules both out. That leaves MedStream Capital working capital ($25,000 to $2,000,000 over 3 to 24 months) and the line of credit ($25,000 to $500,000), both decided the same business day on complete files received before 2:00 p.m. ET.
Practices under 24 months old are funded too, typically at $25,000 to $75,000.
Why deposits instead of a score? A personal score can be dragged down by things that say little about how the practice runs — heavy student debt, a past personal default, a maxed-out card. Four months of deposits show whether patients and payers keep paying, and whether the account holds a balance between paydays. That is the risk we are actually taking, so that is what we price.
The path to cheaper money
Use the advance to solve the cash problem, then graduate. Once the practice has 24 months of history, a 600+ score and two years of clean returns, a partner term loan will beat working capital on total cost, and we will tell you so rather than renew you into another advance. Paying off early helps too: there is no prepayment penalty, ever, and up to 30% of the remaining balance comes off.
One honest limit: if an advance would push your debt service past what your deposits support, we decline, and we say why.
Related: working capital, partner term loans, published decline reasons, funding with an existing advance, or how much a practice can borrow.
FAQ
Questions that usually follow.
What credit score does a medical practice need for funding?
None for MedStream Capital working capital or a line of credit. We underwrite on four months of business bank deposits. Partner term loans need a 600+ personal FICO and SBA 7(a) needs 680+, with 700+ for better pricing.
Will applying hurt my personal credit?
No. MedStream Capital runs a soft pull at application, which does not affect your personal credit score. Any hard pull happens only with separate written consent before funding.
Can I get an SBA loan for my practice with bad credit?
Usually not. SBA 7(a) through our partner banks generally requires a 680+ personal FICO, a 1.25× debt-service coverage ratio, three years of returns and a 10% equity injection on an acquisition. Those are the partner bank’s thresholds. MedStream Capital working capital has no FICO minimum.
If credit doesn't decide it, what gets a practice declined?
The most common reasons, in order: an undisclosed existing position found in the bank statements, average monthly deposits below $15,000, fewer than 6 months of operating history, and a negative-day count showing the account is run to zero every cycle. We will tell you which one applied.
Do I need tax returns if my credit is bad?
No. MedStream Capital working capital and lines of credit need four months of business bank statements and no tax returns, P&L or patient records. Partner term loans and SBA files require returns because the partner bank requires them.
Done reading? Get your real number.
Four minutes to apply. A soft pull that does not touch your personal score. A decision today.