OB/GYN Practice Loan Documents: What Lenders Request
Gathering OB/GYN practice loan documents before you apply can make the financing process smoother and help a lender understand your practice more clearly. Missing or inconsistent records are one of the most frequent reasons a loan review slows down.
This checklist covers documents lenders often request for women’s health practices, whether you are buying a practice, completing a buy-in, purchasing real estate, refinancing or adding working capital. Requirements vary by lender, program and transaction, and nothing here is legal, tax or compliance advice or a commitment to lend.
Why Lenders Ask for So Much Information
Lenders need to understand three things: the practice’s ability to repay, the borrower’s financial strength and the risks specific to the transaction. Documents help answer each question. Clear, organized records may reduce follow-up requests and help a lender evaluate the request with confidence.
Personal Documents
For most practice loans, lenders review the owners and guarantors as well as the business. Common requests include:
- Personal tax returns for recent years
- A personal financial statement listing assets and liabilities
- Bank and investment account statements
- A resume or curriculum vitae showing training and practice history
- Copies of medical licenses and board certification
- Information about student loans and other personal debt
- Government-issued identification
Lenders will also typically review personal credit reports with the borrower’s authorization. If you have recently changed jobs, finished training or relocated, a short explanation of your career timeline can help the lender understand your income history.
Practice Financial Documents
For an existing practice, lenders usually request:
- Business tax returns for recent years
- Year-to-date profit and loss statement and balance sheet
- Accounts receivable aging reports
- A schedule of existing business debt, including loans, lines of credit and equipment leases
- Business bank statements
- Payroll summaries
If the practice’s earnings include items that will not continue, such as owner expenses or one-time costs, prepare documentation to support any adjustments.
OB/GYN Practice Loan Documents Unique to Women’s Health
Women’s health practices may receive questions that other specialties do not. Helpful records may include:
- Revenue by payer: showing the mix of commercial insurers, Medicaid, Medicare and self-pay
- Delivery volume: recent trends in births attended by the practice’s providers
- Service line breakdown: obstetrics, gynecology, procedures and ancillaries
- Malpractice coverage: policy declarations and a claims history summary
- Hospital privileges and call arrangements: where providers deliver and how call is shared
- Provider roster: physicians, midwives and advanced practice providers, with tenure
These records help lenders understand payment timing, payer concentration and how dependent revenue is on individual providers.
Acquisition and Buy-In Documents
If you plan to buy an OB/GYN practice or a partner’s share, lenders may also ask for:
- A signed letter of intent or draft purchase agreement
- The seller’s tax returns and financial statements
- A practice valuation or appraisal, if available
- Partnership or operating agreements for buy-ins and buyouts
- The office lease and any assignment terms
- A list of equipment included in the sale
- Details of any seller financing, which is typically subordinate to the senior loan
- A transition plan, including how long the seller will remain
Lenders will also want to see documentation for your equity contribution. Our article on the OB/GYN practice down payment explains how buyers plan for it.
Start-Up and Expansion Documents
For a new office, an expansion or a new service line, lenders may request:
- A business plan describing services, market and staffing
- Monthly revenue and expense projections
- Contractor bids and build-out budgets
- Equipment quotes
- A lease or letter of intent for the space
- A timeline for licensing, credentialing and opening
Conservative, well-supported projections are generally more persuasive than optimistic ones.
Real Estate Documents
When financing a building, lenders may request a purchase contract, property information, an appraisal, environmental and property condition reports and, for construction, plans and contractor bids. Programs such as SBA 7(a) loans have their own forms and requirements, and eligibility depends on the business, the borrower, use of proceeds, program rules and lender review.
Refinance and Working Capital Documents
Refinancing usually requires current statements and payoff information for each obligation being refinanced, along with the practice’s recent financials. Working capital requests often focus on accounts receivable aging, bank statements and cash flow history.
Tips for Organizing Your Documents
- Create a secure digital folder with clearly labeled files
- Use consistent date ranges across tax returns and financial statements
- Reconcile financial statements with tax returns and explain differences
- Prepare a short written explanation of any unusual years or one-time events
- Keep a list of open questions to discuss with your accountant
- Update year-to-date financials if the review takes longer than expected
Working with an accountant who understands medical practices can help make sure the numbers tell a consistent story.
Matching Documents to the Loan Type
Different loan types emphasize different records. An acquisition loan focuses heavily on the target practice’s history, while a conventional loan for an established practice may lean on the practice’s own financial statements and the owners’ credit. Our overview of OB/GYN practice loans explains the main options, and conventional practice loans may be available to established physicians with strong financials.
Final Thoughts
Preparing OB/GYN practice loan documents in advance can help you move through the financing process with fewer delays and a clearer picture of your options. Organized records show lenders that you understand your practice and are ready to take the next step.
US Medical Funding helps women’s health physicians prepare for and secure practice financing. Learn more about our OB/GYN practice acquisition financing and our full range of gynecology practice financing options.
