Physical Therapy Practice Loan Documents: What to Prepare
Gathering physical therapy practice loan documents before you apply can make the financing process smoother and help you avoid back-and-forth requests that slow a deal down. Whether you are buying a clinic, opening a new location or refinancing existing debt, lenders ask for a similar core set of records.
This checklist organizes those documents by category so you can start collecting them early. Requirements differ by lender, loan program and transaction, so treat this as a starting point rather than a complete list. Nothing here is legal, tax or compliance advice.
Personal Documents
Most practice loans require the owner or owners to provide personal financial information:
- Personal federal tax returns for several recent years
- A personal financial statement listing assets, liabilities and monthly obligations
- Government-issued identification
- A resume or summary of clinical and management experience
- State physical therapy license and any specialty certifications
- Statements showing available cash for a down payment and reserves
- Details of student loans and repayment plans, if applicable
Lenders use these records to understand your credit, liquidity and ability to support the loan if the clinic has a slow period.
Business Financial Documents
For an existing clinic, whether yours or one you are buying, expect requests for:
- Business tax returns for several recent years
- Year-end profit and loss statements and balance sheets
- A current year-to-date profit and loss statement and balance sheet
- Business bank statements
- A schedule of existing business debt, including balances, payments and maturities
- Payroll summaries and owner compensation
Consistency matters. Lenders compare tax returns, financial statements and bank deposits, so differences should be explained in advance.
Physical Therapy Practice Loan Documents Specific to Revenue
Therapy clinics have revenue details that lenders review closely. Prepare:
- Revenue by payer, including commercial insurers, Medicare, Medicaid, workers’ compensation, personal injury and cash-pay
- Accounts receivable aging reports by payer
- Visit volume and new patient counts over time
- A list of therapists and assistants with roles and tenure
- Referral source reports showing where new patients come from
These reports help lenders judge how stable and diversified the clinic’s revenue is. Our article on physical therapy practice loan requirements explains how lenders use this information.
Acquisition Documents
If you are buying a practice, lenders typically also want:
- A signed letter of intent or purchase agreement
- The seller’s tax returns and financial statements for several years
- A list of assets being purchased, including equipment
- Any seller financing terms
- A business valuation, if one has been prepared or is required
- Your transition plan for patients, staff and referral sources
Much of this overlaps with the information gathered during your physical therapy clinic due diligence.
Real Estate and Lease Documents
Lenders want to know the clinic has a secure place to operate:
- A copy of the current lease or proposed lease
- Landlord consent to assignment, if buying an existing clinic
- A purchase contract, appraisal and environmental information if buying property
- Contractor bids and plans for any build-out
Start-Up and Expansion Documents
For a new clinic or additional location without operating history, lenders lean heavily on planning documents:
- A business plan describing the market, services and competition
- Financial projections for patient visits, staffing and expenses
- A budget for build-out, equipment and working capital
- Your plan for credentialing and payer enrollment
Payer contracts, Medicare and Medicaid enrollments and credentialing should not be assumed to carry over to a new entity or location. Lenders may ask how the clinic will cover expenses while enrollments are pending.
Documents for SBA-Backed Loans
If you are applying for an SBA 7(a) loan, expect additional program forms and disclosures, such as information on each owner and use of proceeds. Eligibility and terms depend on the business, the borrower, the use of proceeds, program rules and lender review, and every loan is subject to approval. Our guide to SBA loans for physical therapy practices covers how these programs work.
Tips for Organizing Your Application
- Scan documents into clearly labeled digital folders
- Have your accountant review financial statements before submission
- Prepare short written explanations for unusual items, such as a dip in revenue or a large one-time expense
- Update year-to-date statements if the process extends across reporting periods
- Keep a list of what you have sent and when
Common Mistakes That Delay Applications
Many delays come from small, avoidable issues:
- Submitting financial statements that do not match tax returns without an explanation
- Leaving out a business debt or lease from the debt schedule
- Providing outdated year-to-date financials
- Missing signatures on personal financial statements or forms
- Sending payer reports in formats that are hard to read or reconcile
Reviewing the package with your accountant before submission can catch many of these problems.
Keeping Records Ready for the Future
Once you have assembled a complete package, keep it updated. Clinics that maintain current financial statements, payer reports and debt schedules are better prepared for future opportunities, whether that is a refinance, an expansion or the purchase of another clinic. Organized records also make it easier to respond when a lender asks follow-up questions during underwriting.
Final Thoughts
Lenders make decisions based on the information in front of them. Having your physical therapy practice loan documents organized, consistent and complete helps a lender understand your clinic and can reduce delays in the review process.
US Medical Funding helps physical therapists prepare for and secure financing for acquisitions, expansions and other practice needs. Learn more about our physical therapy practice acquisition financing and our full range of physical therapy practice financing options.
