Quick answer
Health practices — GPs, dentists, physios, psychologists, optometrists, vets and other allied health providers — usually borrow for clinical equipment, fit-outs, buying into or acquiring a practice, and adding rooms or locations. Equipment finance suits clinical gear, fit-out and property-backed loans suit premises, and acquisition loans suit practice purchases. Lenders value steady patient income, registrations and experienced practitioners.
Key points
- Clinical equipment is well suited to equipment finance.
- Fit-outs are a big cost — plumbing, rooms and specialist lighting add up.
- Practitioner registration and experience reassure lenders.
- Buying into or acquiring a practice needs careful due diligence.
Health practices are some of the most stable businesses in Australia — people always need care — but they’re also expensive to set up and equip. A treatment room needs plumbing, specialist lighting and clinical gear. A new dental surgery can cost more than a family home. And buying into an established practice means funding goodwill on top of everything else.
How does money move through a health practice?
- Patient fees arrive daily, often a mix of private payments, insurer claims and government-funded services.
- Practitioner costs — employed staff, contractors and service-fee arrangements — make up a large share of spending.
- Equipment needs regular replacement and upgrading as technology changes.
- Premises are often fitted out to clinical standards, which costs more than an ordinary office.
- Growth usually means more rooms, more practitioners or a second site.
Which loan types suit health practices?
| What you need | Loan type that fits |
|---|---|
| Dental chairs, imaging, treatment beds, diagnostic devices | Equipment finance |
| Treatment rooms, plumbing, reception, accessibility works | Fit-out finance |
| Buying an existing practice or buying in as a partner | Business acquisition loan |
| A new clinic using equity in your home | Property-backed loan |
| Working capital while a new practitioner builds a list | Working capital loan |
| A second location | Open a second location |
| A practice vehicle (vets, mobile services) | Vehicle finance |
What do lenders look for in a health practice?
- Registration and experience. Practitioners must be registered with the relevant National Board through Ahpra; lenders will often confirm this.
- Consistent income. Bank statements and practice management reports showing a steady patient base.
- Lease and premises. Long enough tenure to justify a clinical fit-out.
- Practitioner arrangements. Who generates the income, and how secure those relationships are.
- For acquisitions: patient retention, referral sources and whether the selling practitioner will stay through a handover.
business.gov.au’s health care and social assistance page is a helpful overview of the regulatory side of running a practice.
What does it look like in practice? (illustrative)
A Perth physiotherapy practice has outgrown its two rooms and has a waiting list. It leases the tenancy next door and plans four new treatment rooms and a small rehab gym. The removable equipment — treatment tables, exercise equipment, IT — goes on equipment finance. The building works are funded with an unsecured loan sized on the practice’s strong trading, and the landlord contributes to the fit-out in exchange for a longer lease. A line of credit covers the extra wages while two new physios build their client lists. Illustrative only.
What should practitioners watch out for?
- Fit-out creep. Clinical builds often uncover services upgrades. Add a contingency.
- Equipment that dates. Match finance terms to how long the technology will stay current.
- Service-fee and contractor arrangements — get professional advice so the structure suits tax and employment rules.
- Tax timing. Equipment purchases may qualify for depreciation concessions; the ATO’s instant asset write-off threshold is $20,000 for eligible businesses with aggregated turnover under $10 million, from 1 July 2023. Check with your accountant for your income year.
If you’re planning a big upgrade and want to check the finance side before signing anything, send us the plan.
Buying into a practice: what’s different?
Buying a share of a practice, or the whole thing, is one of the biggest financial decisions a practitioner makes. The price usually includes goodwill — the value of the patient base, referral relationships and reputation — plus equipment and fit-out. Lenders look at:
- Patient retention. Will patients stay when the founding practitioner steps back? A handover period helps.
- Who generates the income. If one practitioner bills most of it, what happens if they leave?
- The lease. Clinical premises are costly to move, so remaining term matters.
- The structure. Partnership, company, service trust or associate arrangement — each affects how income flows and what the lender can rely on.
- Your own track record as a practitioner and, ideally, as a manager.
Get the accountant and lawyer involved early, and share their findings with your lender — it speeds everything up.
How do new practitioners build a borrowing track record?
If you’ve recently gone out on your own, keep practice income flowing through a dedicated business account, lodge BAS on time and keep tidy practice-management reports. Within months, those records become the evidence that opens up unsecured options. Starting with equipment finance for your first major purchase, and repaying it perfectly, is a great way to build credibility with lenders.
Should a practice own its premises?
Some established practices eventually buy the building they operate from, often through a separate entity. That can provide long-term security of tenure and, over time, equity that can support future borrowing. It also ties up capital and adds a property commitment on top of running the practice. It’s a decision for your accountant and adviser, but it’s worth knowing that commercial premises owned by the practitioners can later become security for the practice’s growth.
What documents will you need?
- Photo ID, ABN or ACN, and practitioner registration details
- Recent business bank statements and practice reports
- BAS and financial statements
- Equipment and fit-out quotes, and the lease
- For acquisitions: the practice’s financials, contract of sale and patient-base information
- Property details if offering security
Which other pages are worth reading?
- Buy equipment — comparing every way to fund clinical gear.
- Hire staff — funding a new practitioner’s ramp-up.
- Costing your growth plan — before you commit to new rooms.
Ready to grow your practice?
More rooms, better equipment, a second site or a practice of your own — each has a finance shape that suits it. We’ll help you build the right mix and avoid funding long-life fit-outs with short money.
Enquiring is safe: no credit check, no handing your details to a crowd of lenders, and a real person calls you. Please give accurate figures on income, practitioners, the lease and costs so we can match you properly. See if you qualify.
Frequently asked questions
Can I finance dental or medical equipment?
Yes. Dental chairs, imaging equipment, treatment beds, diagnostic devices and practice IT are commonly funded with equipment finance, where the equipment is the security.
How do I finance buying into a practice?
Buying an existing practice or a share of one is a business acquisition. Lenders look at the practice's financials, patient base, lease and your experience, often with property security or the practice's assets supporting the loan.
Can a new practitioner get a fit-out loan?
Yes, commonly through a property-backed loan or a combination of equipment finance and the practitioner's own contribution. Experience and a clear patient-acquisition plan help.
Do lenders care about how patients pay?
They look at overall income consistency. Practices with a mix of private billing and government or insurer-funded income show patterns lenders can assess through bank statements and practice management reports.