The Cost of Starting an Optometry Business — and How to Fund It

Expanding your optometry practice can be a rewarding step in your journey as a professional eye health provider. With rising demand for eye care services — due to factors like an aging population and increased screen time, even among children and teens — there’s never been a better time to consider an optometry practice expansion.

Of course, with big growth comes big challenges, especially in terms of funding and managing your practice’s finances. Here’s a look at how optometry practice loans can help boost your expansion plans and increase your long-term revenue, what sorts of loans and funding solutions to consider, and when an optometry practice expansion makes the most sense.

Why Expand Your Optometry Practice?

There are several reasons to consider optometry practice expansion, whether you’ve been a practicing ophthalmologist for decades or are just beginning your patient care career.

• Demand is high (and rising): More and more patients are seeking vision care, especially with the rise of myopia and digital eye strain. Screen time usage has shown no signs of slowing anytime soon, so eye care providers can expect to stay busy with both primary eye care and specialized ophthalmic services. Today’s optometrists have seen an expanded scope of practice like never before, in fact.
• New services can be introduced: You can use an optometry practice expansion to begin offering specialty services that you don’t already offer. For example, trained optometric physicians might offer vision therapy or dry eye treatments to kids and adults alike. If you’re interested in advances and surgical procedures, offering cataract surgery or laser treatment for lesions can help expand your optometric practice beyond just glasses and contact lenses.
• Boost your revenue: Your practice’s scope expansion often correlates with increased optometry practice revenue. More clients and appointments, diversified services, increased pricing, and a broader scope of practice can all boost your earnings.

Growth allows you to better serve your community while positioning your practice for sustained profitability. Of course, offering new services and technology as part of an optometry practice expansion usually requires additional space and equipment... which can be costly.

Costs Involved in Practice Expansion

Understanding the financial commitment involved with an optometry practice expansion is crucial to creating a business plan, choosing your scope of practice, and even deciding on the right funding source.

While these expenses will vary from one individual practice to the next, some common costs include:

• Real estate — Leasing or purchasing a new location or renovating an existing space
• Equipment — Investing in new diagnostic and treatment technologies, like costly lasers for vision correction and cataract treatment
• Staffing — Hiring and/or training additional personnel
• Marketing — Promoting your expanded services to attract new patients, encourage existing patients, and gain referrals
• Operations — Cover any increased day-to-day operational expenses during your practice’s transition period

This is where optometry loans become essential tools for growth.

Types of Loans for Optometrists

Many funding options are optimized for doctors of optometry and healthcare providers. Some products are geared toward doctors in rural areas looking to expand their ophthalmology practice, while some could be a better fit for doctors in big areas like New York.

Here are some of the most common funding options for eye doctors looking to expand their business:

• Term Loans — Available from banks, credit unions, and business lenders, this lump-sum financing option gives you the cash you need upfront and all at once, making it ideal for renovations or large purchases. You will repay the debt with a fixed monthly payment over an agreed period of time.
• SBA Loans — Backed by the Small Business Administration (SBA), these business loans offer competitive rates and longer repayment terms for businesses that qualify. Qualifying for an SBA loan usually requires more documentation and a more arduous application process (especially if you’re fresh out of optometry school with limited business experience).
• Business Lines of Credit — Lines of credit — also available through banks, credit unions, and business lenders — provide flexible funds that you can draw from as needed. This makes them great for managing cash flow during an optometry practice expansion, covering emergency expenses, making large purchases, and even making payroll.
• Equipment Financing — These loans are specifically designed for purchasing high-cost items. Think optometric equipment like lasers for glaucoma treatment, office technology items like new computer systems, and more.
• Commercial Real Estate Loans — A commercial loan can be used for purchasing, building, or upgrading your practice location when it comes time for an optometry practice expansion.

These loans for optometrists can be tailored to fit the scale and speed of your growth strategy.

• Term Loans – Ideal for equipment, renovations
• SBA Loans – Low-interest, long-term options for practice growth
• Business Lines of Credit – For flexible, short-term expenses
• Equipment Financing – For high-cost optometry technology
• Commercial Real Estate Loans – For purchasing or renovating office space

Optometry Practice Acquisition as a Growth Strategy

Sometimes, the best way to grow your optometry practice is to buy and expand on an existing practice. Some benefits to acquiring another practice include an:

• Established patient base (meaning immediate revenue generation from the beginning)
• Experienced staff (that are trained and already familiar with operations)
• Existing infrastructure (including facilities and equipment already in place, saving you money)

Optometry practice acquisition can be financed through specialized optometry loans. In fact, many lenders favor acquisition plans, especially when there’s a proven track record of revenue within that practice.

How to Qualify for Optometry Business Loans

Whether you’re the newest member of the American Optometric Association (AOA) or have been running your practice for years and want to fund an optometry practice expansion, qualifying for a business loan can be tricky.

Depending on how much you want to borrow, how you’ll use the funds, your business (and sometimes personal) creditworthiness, and how long you need your loan for, lenders will look at your:

• Your credit score
• Financial documentation
• Business plan
• Collateral (and sometimes, a personal guarantee)

A well-prepared application increases your chances of approval and may help secure better optometry practice loan terms. This means gathering required documentation (bank statements, tax returns, EINs, etc.) beforehand, so it’s ready to provide to the lender when you submit your application. You’ll also want to spend time creating a complete business plan for your optometry practice expansion; this should ideally include market research, projected costs, marketing plans, and more.

Since your business credit — and in many cases, personal credit history — will play an important role in the loan approval process, be sure to protect this leading up to your loan application. Make all payments on-time, reduce debt balances where possible, and avoid opening new accounts unless necessary.

Tips for Maximizing Loan Value

Taking out a business loan can be a great way to fund your optometry practice expansion, especially if you make a point to put those borrowed funds to good use from day one.

Having a detailed financial forecast and ROI projection will help you optimize your loan funds, both of which may be part of your business plan. This will guide where and how you spend that money so it best helps your business grow.

Taking out a business loan isn’t free, but if you use the fund strategically, the cost is worthwhile. This means prioritizing revenue-generating upgrades based on your business plan and market research. For some, funds are best spent upgrading or purchasing new equipment (like lasers) to offer new treatments to customers. For others, building a new office or expanding the existing one is the best use of funds.

And of course, part of the success of your optometry practice expansion will be monitoring your goals and success metrics moving forward. This will look different for each practice, depending on your goals, business plan, and spending strategy.

Choosing the Right Lender for Your Optometry Practice Expansion

Not all lenders understand the nuances of optometry, so building a relationship with a knowledgeable lender can benefit your practice long after the funds are used.

When choosing a lending partner, pick one familiar with healthcare and optometry industry, if possible. These lenders will not only make the loan application process easier, since they understand your business model and optometry practice expansion goals, but may also offer advisory services that go beyond the loan.

Be sure to compare optometry loan terms, interest rates, fees, and repayment schedules when considering your options. These will determine how much it’ll cost you to borrow that money and how much you’ll be required to pay back monthly. You may also want to evaluate each potential lender’s customer service process, including their funding speed and any available support for long-term goals. Some lenders shine here more than others.

Final Thoughts

Optometry practice expansion is an exciting milestone that can elevate your practice — or an existing practice you’re buying — to new levels of success. Whether you're renovating, purchasing equipment, hiring or training staff, or considering an optometry practice acquisition, there are business loans for optometrists designed to meet your specific needs.

By choosing the right optometry loans and lenders, and executing a strategic growth plan, you can not only boost your optometry practice revenue but also deliver even greater value to your patients. While financial hurdles are inevitable along the way, they are also manageable with the right support.

FAQs on Optometry Practice Expansion and Funding

Can I make good money as an optometrist?

Recent research shows that general ophthalmologists hold the top-paying optical job spot, followed by glaucoma specialists. Refractive surgeons also rank in the top three, offering another option to providers looking to expand their scope of practice.

Can an optometry practice offer ophthalmology services?

There is much overlap between optometry and ophthalmology these days, with an unprecedented increase in the optometric scope of practice in recent years. Due to doctor shortages and patient demand, optometrists are providing more expanded services than ever before.

How can I use a business loan for optometry practice expansion?

A business loan can be used to build a new office or expand an existing space, renovate for additional services and care, hire and train new staff, purchase additional equipment, or even market your practice to a broader audience.

Are optometrists and an ophthalmologists the same?

Optometrists are ODs (Doctors of Optometry) following a four-year optometry school program after undergraduate studies. Ophthalmologists are MDs (Doctors of Medicine) or DOs (Doctors of Osteopathic Medicine) following medical school and a specialized residency.

Can an optometry practice offer advanced eye care?

The scope of optometry care has expanded greatly in recent years, with many practices now offering advanced services, procedures, exams, and care. While there are still some areas of care best suited to ophthalmology practices, like many surgical procedures, optometrists can diagnose, treat, and educate on a wide range of eye-related needs.

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