Medical practice financing: which bank funds setup and takeover?
Establishing, taking over or expanding: practice financing is rarely a single loan, but the right mix of a bank loan, KfW funding and equity. We bring the building blocks together and know the banks that specialise in the medical professions.
What does a practice takeover cost, and in which order is it financed?
A takeover is financed in a fixed order: the KfW application always comes first, through your bank and before the project begins. Anyone who has already signed the takeover agreement, the lease or the equipment order loses eligibility for good. Costs depend on the discipline: according to apoBank, a single-handed dental practice recently averaged 226,000 euros purchase price.
Medical practice financing: which lenders provide it, and how does KfW funding come in?
Medical practice financing comes from specialist or general banks, with KfW funding via your house bank.
- How is a medical practice financed in Germany? Rarely with a single loan: the right mix of a bank loan, KfW funding and equity — plus leasing for expensive medical technology. The KfW takes on up to 80 % of the credit risk through its liability exemption, which makes lending easier. Practice financing without equity is possible with good credit standing after a thorough check. Financing for doctors.
- Medical practice financing: what is the most common costly mistake? Applying for funding too late. KfW development loans must be applied for before the contract is concluded — anyone who has already signed the purchase contract or the order loses the entitlement. As a guide, a GP single-practice takeover averaged €110,100 for the purchase price and €188,200 in total investment, a dental one €226,000 and €450,000 (apoBank/IDZ, reporting years 2022/2023 and 2024); six-figure sums are the rule.
- Who arranges this? Perini Finance & Property — licensed under §34i and §34c GewO, 650+ banks compared. We know the banks whose lending rules cover practice setup, takeover and expansion — including the specialist medical-profession banks and the KfW application at the start, not the end.
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.
- New setup: You build from the ground up: premises, medical technology, IT, initial equipment, start-up liquidity. High capital requirement, but full creative freedom.
- Takeover: You buy an existing practice including the patient base. The intangible value (goodwill) is a separate item that must be cleanly valued.
- Expansion / modernisation: New equipment, additional rooms, digitalisation. Often a mix of investment loan, leasing and funding.
What drives the investment sum, and how is goodwill valued?
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: a GP single-practice takeover averaged €110,100 for the purchase price and €188,200 in total investment (apoBank, 2022/2023), a dental one €226,000 and €450,000 (IDZ/apoBank, 2024) — medical technology, IT and modernisation are the largest items beyond the purchase price itself. Six-figure sums are the rule, not the exception.
Understanding goodwill: in a takeover you pay not only for equipment and fittings, but also for the intangible value — the established patient base and the practice’s reputation. The clean valuation of tangible and intangible assets is the foundation of every sound practice financing. we make sure the goodwill is realistic.
The building blocks of your financing
Practice financing is built from four blocks: a bank loan as the backbone, KfW funding with a liability exemption of up to 80 % of the credit risk, equity and leasing for expensive medical technology.
- 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.
- 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.
- 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.
- 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. we therefore put the funding application at the start, not the end.
An important distinction: if it is about your private property (your own home, possibly with practice rooms in the same building), you are in the right place on our page Mortgages for doctors. If it is about wealth building with investment property, that is handled by our partner company AUP Finanzservice UG.
Qualified outside Germany? Licence, specialist recognition, entry in the medical register and admission all come before a bank can finance anything — and the KfW application must be filed before you sign. The full sequence: setting up a practice in Germany.
Frequently asked questions
Can I finance the practice and my private home together?
Yes, combined concepts are possible and in part lead to interest advantages. The clean separation of purposes from a tax point of view is important — you discuss that with your tax adviser, and we structure the financing to fit.
Is the interest on practice financing tax-deductible?
Interest connected with running the practice is in principle deductible as a business expense — both for setup and takeover. The specific tax assessment is handled by your tax adviser.
Which bank is the right one for my practice?
That depends on the specialism, the project and your situation. Besides general banks there are institutions aimed specifically at the medical professions. we compare and select the right one — independently and free.
How long does the financing commitment take?
With complete documents and a clear financing plan, it goes quickly. we prepare your application so that the bank can decide fast.
Any questions on this topic?
A first consultation is free and without obligation — the commission is, as a rule, paid by the bank. We tell you what this means for your own financing.
Related pages
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Mortgages for female doctors: part-time, parental leave, return to work — lenders that assess these life phases fairly. §34i.
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Doctor living abroad (Switzerland, UAE, UK, USA) financing in Germany: non-residents, foreign-currency income, lender selection. §34i.
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Junior doctor mortgage in Germany: how banks assess a doctor's salary and fixed-term contracts — and why starting early can pay off.
Editorially responsible: Olga Nikushkina — owner, §34i GewO (German mortgage brokerage), adviser register D-W-132-ZUCB-95. Specialised in German property financing with an international dimension: non-residents, foreign-currency income, cross-border workers, expats. Siegfried Perini is entered in the German intermediary register under this licence as a person directly involved in brokerage and advice (§ 11a GewO), active in real estate since 1992. Not legal or tax advice.