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Opening and maintaining an eye care practice is expensive. The average cost to build a small practice runs from $250 to $400 per square foot, for just two or three exam lanes and a modest footprint. Optometry equipment needs regular maintenance and updates, which requires lots of up-front working capital.
That's where optometry practice loans fit in. Financing can help cover the cost of medical equipment or a practice buildout, without straining your cash flow.
I've spent more than 15 years arranging financing for small to midsize business owners. Below, I cover financing types, what lenders review before they approve you, the cost of opening a new location, and how owners typically use their optometry practice financing.
| Financing type | Repayment term | Interest rate | Funding speed | Common uses |
|---|---|---|---|---|
| SBA loans | 10 to 25 years, payments monthly | Starting at 6.75% | As fast as two weeks, typically 30 to 90 days | Buying a practice or commercial property |
| Equipment financing | 12 to 72 months, payments monthly | Starting at 6% | 1 to 5 days | Exam lanes, OCT units, diagnostic tech |
| Business lines of credit | Revolving, 6 to 36 months, payments weekly or monthly | Starting at 6% | As quick as same day | Payroll, inventory, slow months |
| Short-term business loans | 6 to 36 months, payments weekly, biweekly, or monthly | Starting at 6% | As fast as same day | Buildout, renovation, one-time project costs |
| Home equity lines of credit | Up to 30 years, draw period up to 5 years | As low as prime | As fast as one week | Renovation or expansion using home equity |
Optometry Practice Financing Options
Each type of optometry practice financing solves a different problem. Whether you're exploring practice ownership for the first time or looking to purchase equipment, the best option usually aligns with the useful life of what you're financing.
Here's what's offered through Clarify Capital's network.
SBA Loans
The U.S. Small Business Administration (SBA) guarantees a portion of these loans, which makes them less risky for lenders. The SBA 7(a) program lets you borrow up to $5 million for acquiring a practice, refinancing existing business debt, buying furniture and fixtures, and more. Interest rates start at 6.75% with repayment terms of 10 to 25 years.
Equipment Financing
Equipment financing covers up to 100% of the equipment value for your optometry practice. Use it to buy a phoropter to measure a patient's prescriptions or a new slit lamp to better evaluate the front of the eye. The equipment secures the loan, so you don't have to pledge any other assets.
Business Lines of Credit
A business line of credit is a revolving credit line you're able to draw on as needed. Business lines of credit help fill cash flow gaps, like covering payroll for a new optician or buying inventory ahead of a busy season. You only pay interest on what you use.
Short-Term Business Loans
A short-term business loan is a lump-sum loan you can use to cover practice needs that require quick capital. Use a term loan to cover marketing costs, like a rebrand and a website rebuild, or to add an extra exam lane.
Home Equity Lines of Credit
The biggest difference between a home equity line of credit (HELOC) and the other financing options on this list is that a HELOC is largely underwritten based on your personal finances, though it can be used to cover business expenses. HELOCs use equity in your home rather than the practice. This means if you can't pay back the loan, you're putting your home at risk.
HELOCs are revolving credit lines that you can draw on, repay, and draw again. Lines run up to $750,000 through Clarify Capital's lender network.
Minimum Qualifications
$10,000 in monthly revenue
Your business must earn at least $10K per month in a business bank account.
500+ credit score
You can get approved with any credit score. But the better your credit rating, the better interest rates lenders offer. Your FICO score should be above 500.
Minimum six months in business
Your company should be operational for a minimum of six months. This shows business lenders that your company is sustainable and won't go out of business.
Have a business bank account
Your Clarify advisor will need three or four months of your most recent bank statements to verify income. This is just to see you're actually making $10K+ month in revenue.
Other Optometry Practice Financing Options
Here are some other optometry practice loans and related options that sit outside of what Clarify Capital offers.
Commercial Real Estate Loans
These loans come into play when you're buying or refinancing a practice and are typically underwritten on the asset and the cash flow together. Our explainer on commercial real estate financing goes in depth on how these loans work.
Equipment Leasing
Leasing lets you rent the equipment for a set period of time from the lessor. At the end of the term choose to renew, return, or purchase the equipment. Leasing typically costs less per month, but you usually pay more over the full term compared to financing.
Vendor and Manufacturer Financing
Optometry equipment vendors sometimes offer equipment financing options at a promotional rate. It's worth comparing this option against other lenders before you agree.
SBA Microloans
A separate SBA loan program offered through intermediary lenders and capped at $50,000. Microloans can help cover startup costs for newer optometry practices. These loans are suitable options for new businesses that can't always get access to capital through traditional lenders.
Business Credit Cards
Use a business credit card to cover software, supplies, and other small purchases. Interest rates are high, so a carried balance gets expensive quickly.
What Lenders Review
Lenders review different qualifications depending on the type of financing. But most of them consider the same few things:
Personal credit score
A higher personal credit score helps you secure better rates and terms
Practice revenue and cash flow
Proof the clinic makes enough monthly and annual revenue to take on a new payment with room to spare
Time in business
New practices may face more scrutiny from lenders compared with those who've been in business for a long time
Loan amount and down payment
Bigger loan amounts sometimes draw additional scrutiny from lenders. A higher down payment lowers the lender's exposure
Collateral
The equipment secures the loan in equipment financing; property secures real estate loans
Overall credit history
Lenders look at the practice's credit history for any late payments, tax liens, or loan defaults
A weak credit profile doesn't automatically disqualify you from financing. Our low-rate business loans for bad credit page gets into more detail on what's available to you.
What an Optometry Practice Actually Costs
The construction costs are just one part of the picture. Here are some other average costs that go into building and maintaining your optometry practice.
Lane construction
$35,000 to $75,000 per lane
Imaging room buildout
$45,000 to $90,000
Pre-test room buildout
$25,000 to $50,000
In-office optical lab equipment
$50,000 to $150,000
Optical dispensary
$120 to $260 per sq ft
Lane equipment
$40,000 to $120,000 per lane
Many of the above expenses can be covered by optometry practice financing. Use equipment financing to cover the cost of new autorefractors to improve your diagnostic testing, or an SBA 7(a) loan for acquiring a practice.
Match the Financing to Your Practice's Goals
Optometry practice financing comes in a variety of shapes and sizes. Match the financing to your specific practice's goals: equipping a new lane may call for equipment financing, while acquiring a practice fits an SBA loan.
When you're ready to see what fits, apply today. Clarify Capital works across 75+ vetted, reputable lenders. Once you apply, our lending advisors will go over your options with you. Checking your options won't affect your credit score.
Optometry Practice Financing FAQ
Here are straight answers to the most common questions I hear about optometry practice loans.
What Are the Best Loans for Optometry Clinics?
The best loan for an optometry practice depends on what you're financing. It's best to match the terms to the useful life of the asset you plan to buy. For example, equipment financing covers lanes and diagnostic equipment, while SBA loans cover practice and real estate purchases.
How Do I Qualify for an SBA Loan as an Optometrist?
Through Clarify Capital's lender network, you'll need a minimum credit score of 640 and at least two years in business. SBA loans don't require a down payment, but you'll be asked to provide tax returns, financials, and bank statements. Collateral is sometimes required, depending on the loan size and program.
Can I Finance Used Equipment for My Optometry Practice?
Yes, you can finance used equipment for your optometry practice. Approval usually depends on the equipment age, condition, and resale value
How Much Working Capital Does a New Clinic Need?
I recommend a new clinic have enough working capital to cover payroll, rent, and inventory for a few months. The actual numbers are practice-specific, but for three to six months of operating expenses, this typically runs from $50,000 to $120,000 or more.
How Much Does It Cost To Open an Optometry Practice?
It depends on the size of the practice, location, equipment, and your working capital. But the average cost to build a small practice runs from $250 to $400 per square foot, for just two or three exam lanes.
Is My Information Secure When I Apply with Clarify Capital?
Yes. Clarify follows SOC 2 security principles, and we handle your application information securely.
Michael Baynes
Co-founder, Clarify
Michael has over 15 years of experience in the business finance industry working directly with entrepreneurs. He co-founded Clarify Capital with the mission to cut through the noise in the finance industry by providing fast funding and clear answers. He holds dual degrees in Accounting and Finance from the Kelley School of Business at Indiana University. More about the Clarify team →
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