Even physicians occasionally need extra cash flow. Whether it’s for personal expenses, unexpected repairs, or to keep a private practice running smoothly, a physician line of credit can be a flexible way to access funds when needed.
This guide explains how a physician line of credit works, how lenders decide your borrowing limit, and which banks currently offer competitive programs for doctors.
Understanding the Differences Between a Line of Credit and a Traditional Loan
Physicians have two main borrowing options: a traditional loan or a line of credit.
A loan gives you a lump sum upfront, which you repay over time with interest. The terms are fixed, so you know exactly how much you owe each month until the balance is paid off.
A line of credit works more like a credit card. You’re approved for a maximum borrowing amount and can draw from it whenever needed. You’ll pay interest only on the money you actually use, and once you pay it back, the funds become available again.
Many doctors use a personal line of credit for major expenses or emergencies, while others open a business line of credit to support their practice. Terms and interest rates vary by lender, but the flexibility makes it a useful financial tool.
If you’re still comparing options, check out medical practice loans to see how they differ from a revolving credit line.
How Lenders Will Determine Your Credit Line Amount
Your credit limit depends on your financial background and, if applicable, the financial health of your practice. Lenders evaluate several key factors before approval:
- A strong personal credit score and repayment history
- Stable income or an established patient base if you own a practice
- A reliable billing and collections system
- Current financial statements and business performance data
Most lenders set minimum and maximum borrowing limits. Lines of credit for physicians typically range from $25,000 up to several hundred thousand dollars, depending on your specialty, income, and creditworthiness.
Have a Plan Before Using the Line of Credit
A line of credit offers flexibility, but it’s still debt and careful planning helps you avoid unnecessary costs. Before applying, think about how you’ll use the funds.
Some common uses include:
- Covering operating expenses for a new or growing practice
- Paying for equipment repairs or technology upgrades
- Managing short-term cash flow between insurance reimbursements
- Funding professional transitions, like relocation or partnership buy-ins
Be sure to review key loan terms before signing:
- Interest rate: Compare multiple lenders to find the lowest rate.
- Credit limit: Understand your borrowing cap and plan accordingly.
- Repayment period: Confirm how and when payments begin after the draw period.
Reasons to Should Consider a Physician Line of Credit
Physician lines of credit have several advantages over traditional loans:
- Quick access to funds: Draw money only when needed.
- Borrow the exact amount you use: Pay interest solely on what you draw.
- Lower interest rates: Typically lower than credit cards or unsecured personal loans.
- Eligibility across all stages: Residents, fellows, and attendings may qualify.
Because the funds are revolving, you can continue to use the line as you pay it down, which makes it useful for managing variable expenses.
Banks That Offer a Physician Line of Credit
Several reputable banks offer specialized lines of credit for physicians. Below are some strong options available in 2025:
Truist Bank
Truist offers physician lines of credit up to $50,000 for residents and fellows, and up to $100,000 for board-certified doctors, dentists, and podiatrists. Borrowers pay interest only during the draw period, helping keep monthly payments low.
Read more about Truist’s physician lending programs.
Ameris Bank
Ameris provides lines of credit up to $150,000, with a cap of 20% of annual income. Terms are renewable after one year, making this a solid option for licensed physicians and dentists seeking short-term flexibility.
Learn more about Ameris Bank’s physician programs.
Kabbage (American Express)
Kabbage offers small business lines of credit between $2,000 and $250,000, with simple online applications and fast approval. While not exclusive to physicians, Kabbage is a good choice for doctors with newer practices or less established credit.
See Kabbage business credit options.
Key Takeaways
A physician line of credit is one of the most flexible financing tools available to medical professionals. It allows you to borrow what you need, when you need it, without the rigid structure of a traditional loan.
Before applying, compare interest rates, review repayment terms, and think through your long-term financial plan. The right lender can provide financial flexibility to cover both personal and practice-related expenses throughout your career.
To explore other financial tools designed for doctors, compare physician mortgage programs or disability insurance for physicians through LeverageRx.
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