Your own practice is an entrepreneurial decision. Finance it like one.

Setup, takeover, expansion — three routes

Despite a falling number of doctors in private practice, setting up remains for many the route to professional freedom. Each path there has its own financing logic.

What you have to reckon with

The investment sums are considerable and depend heavily on the specialism — a GP with ultrasound and ECG has a very different requirement from a radiology practice with X-ray technology and radiation protection. As a rough guide: the total cost of a practice takeover averages around €227,500, with medical technology, IT and modernisation being the largest items. Six-figure sums are the rule, not the exception.

The building blocks of your financing

1. Bank loan

The backbone. Classic loans with a fixed instalment suit doctors who want a plannable burden from the start. Specialist medical-profession banks know the typical income and investment patterns and often assess practice projects more favourably than a general commercial bank.

2. KfW funding

The KfW supports start-ups in the healthcare sector with low-interest loans for premises, equipment and IT — usable for setup, takeover and expansion. Particularly valuable is the liability exemption: the KfW takes on up to 80 % of the credit risk, so the house bank carries less risk and lending is easier. Often the combination of a development loan and a classic bank loan is the cheapest solution.

3. Equity

The more you put in, the better the terms — and the more independent you are of outside capital. But: practice financing without equity is possible with good credit standing after a thorough check. Doctors with a secure income in particular often meet the requirements.

4. Leasing

For expensive medical technology (e.g. imaging equipment), leasing can preserve credit lines and maintain liquidity.

The most common costly mistake

Applying for funding too late.

Many development loans — above all those of the KfW — must be applied for before the contract is concluded, that is, before the project begins. Anyone who has already signed the purchase contract or the order loses the entitlement. This is the most common and most expensive source of error in practice setups. I therefore put the funding application at the start, not the end.

Frequently asked questions