Medical, dental, veterinary and allied health professionals are often able to access more favourable lending terms than standard business borrowers, thanks to stable income, strong job security and professional registration requirements. Banks and specialist lenders offer dedicated healthcare finance products with higher loan-to-value ratios, competitive rates and flexible structures. This guide covers finance for practice acquisition, equipment, fit-outs and growth across general practice, dental, specialist and veterinary practices.
Lenders generally view medical and allied health professionals as lower-risk borrowers, reflecting stable above-average income, strong job security, professional registration requirements, and proven earning capacity. This typically translates into better rates than a standard business loan and higher maximum loan-to-value ratios. A specialist healthcare and medical finance approach can help you access these preferential terms.
Buying a GP practice usually involves a valuation based on a proportion of annual billings, adjusted for the mix of private and bulk-billed consultations, with a higher proportion of private billing generally commanding a higher multiple.
Banks will often finance a high proportion of the purchase price for doctors with several years of post-fellowship experience, at rates lower than a standard business loan. Most lenders also require a commitment to retaining the existing patient database. Always verify Medicare and private billings match the advertised revenue before committing.
Dental practice valuations are generally expressed as a proportion of annual revenue, with general dentistry attracting a lower multiple than a mixed practice offering preventative and cosmetic services, and high-end cosmetic or corporate-supported practices commanding a premium.
A new dental surgery set-up typically includes dental chairs, digital X-ray systems, sterilisation equipment, compressors and suction, imaging equipment such as OPG or CT scanners, and in some cases a CAD/CAM system. Most equipment can be financed through a chattel mortgage or lease, with terms generally matched to the expected useful life of the equipment.
Specialist categories span surgical specialists such as orthopaedics, plastic surgery and ENT; diagnostic specialists such as radiology, pathology and cardiology; medical specialists such as dermatology, oncology and gastroenterology; and allied health professionals including physiotherapy, psychology and podiatry. Equipment requirements and investment levels vary enormously across these categories, from a treatment table for a physiotherapist through to imaging equipment for a radiology practice, and finance is generally structured to match the asset being purchased.
Veterinary practice valuations are typically higher, as a proportion of revenue, than medical or dental practices, reflecting the strength of client relationships in this sector. A complete veterinary clinic set-up typically includes a surgical suite, digital X-ray, ultrasound, laboratory equipment, anaesthetic machines, dental equipment, and treatment tables and cages.
With a chattel mortgage, the practice owns the equipment from day one, can claim GST upfront and depreciation, and interest is tax deductible. This structure generally offers the best tax outcome for most practices.
Under a finance lease, the lender owns the equipment during the lease term, lease payments are fully tax deductible, and there is an option to purchase the equipment at the end of the term. This can suit practices wanting to keep equipment off the balance sheet.
A rental or operating lease gives shorter-term access to equipment, with the ability to upgrade to newer technology regularly, fully deductible rental payments, and the option to return or purchase the equipment at the end of the lease.
We work with lenders who offer preferential rates and terms for qualified medical, dental and veterinary professionals. Speak with our team about acquisition, equipment or fit-out finance for your practice.
Professional qualifications:
Financial documents:
Practice documents, if acquiring:
Major banks maintain dedicated medical and healthcare banking teams that understand practice valuations, Medicare billing and professional registration requirements, and can generally offer better terms than a standard business banking approach.
Medical professionals generally require a smaller deposit than other business borrowers, reflecting the preferential lending terms available to the profession. Banks will often finance a high proportion of the purchase price for doctors with several years of post-fellowship experience, though the exact figure depends on the lender and your individual circumstances.
Medical professionals typically receive more favourable rates than standard business borrowers, across practice acquisitions, equipment finance and fit-outs. The exact rate depends on your experience, qualification level and the practice’s financials, with specialists often accessing better terms than general practitioners.
Many lenders offer finance for new equipment from major brands with no deposit for medical professionals, while used equipment typically requires a deposit. Terms are generally matched to the expected useful life of the equipment.
Pre-approval with a medical finance specialist can generally be arranged quickly, with formal approval following once practice details are confirmed. Equipment finance for straightforward applications can move even faster. Medical banking teams tend to move more quickly than general business lending, given their familiarity with the sector.
Qualified medical professionals can generally access a higher loan-to-value ratio than other business borrowers, provided they hold current AHPRA registration, have several years of post-fellowship experience, and the practice has strong financials and a credible patient retention plan. First-time practice buyers with less experience are typically offered a lower ratio.
From GP and dental practice acquisitions to specialist equipment and veterinary clinic finance, we help healthcare professionals structure the right funding for their practice.
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