Medical Equipment Finance: Funding Healthcare Equipment in Australia

Medical equipment finance in Australia enables healthcare professionals to acquire essential equipment without large upfront costs. In 2025, rates typically range from 6-12% p.a. (indicative only), with loan amounts from $10,000 to $2 million+ and terms of 2-7 years, subject to individual circumstances. Medical practitioners often qualify for competitive rates due to stable income profiles. Options include chattel mortgages for ownership, finance leases for flexibility, and equipment loans for straightforward purchases. Settlements may be possible within days for established practices with standard equipment.

Medical equipment represents one of the largest capital investments for healthcare professionals. Whether you’re a GP practice upgrading diagnostic equipment, a dental clinic expanding capacity, or a specialist purchasing advanced imaging technology, the price tags can run into hundreds of thousands of dollars.

The good news? Medical equipment finance is designed specifically for these situations, allowing you to acquire what you need while preserving working capital and potentially gaining tax advantages.

Why Medical Professionals Use Equipment Finance

Healthcare practices face a unique challenge—equipment is essential for providing quality care, but it’s expensive and depreciates quickly as technology advances. Paying cash ties up funds that could be used for staffing, marketing, or building emergency reserves.

Equipment finance spreads these costs over time, turning a six-figure capital expense into manageable monthly payments. For many practices, the additional revenue generated by new equipment covers the repayments, making the investment self-funding.

Common Medical Equipment Financed

Healthcare professionals typically finance:

General Practice:

• Ultrasound machines
• ECG equipment
• Spirometers
• Practice management systems
• Minor surgery equipment

Dental Practices:

• Digital X-ray systems
• Dental chairs and units
• Sterilisation equipment
• CAD/CAM systems
• Cone beam CT scanners

Specialist Practices:

• MRI and CT scanners
• Surgical equipment
• Laser systems
• Endoscopy equipment
• Diagnostic imaging tools

Allied Health:

• Physiotherapy equipment
• Exercise and rehabilitation gear
• Podiatry equipment
• Optical testing equipment

Medical Equipment Finance Structures

Chattel Mortgage

Most popular for medical practices. You own the equipment immediately, claim the GST input tax credit upfront (if registered), and may deduct depreciation and interest subject to your tax circumstances.

• Typical terms: 3-7 years
• Indicative rates: 6-11% p.a. (subject to individual circumstances)
• Best for: Established practices wanting tax benefits and long-term ownership

Explore chattel mortgage options for medical equipment.

Finance Lease

The lender owns the equipment during the lease term. You make regular payments and can upgrade at the end, purchase at market value, or return the equipment.

• Typical terms: 3-5 years
• Indicative rates: 7-12% p.a. (rates vary by circumstances)
• Best for: Practices that upgrade technology frequently or prefer consistent expenses

Equipment Loan

A straightforward secured loan where you own the equipment from day one, with the lender holding security.

• Typical terms: 2-7 years
• Indicative rates: 6-10% p.a. (subject to assessment)
• Best for: Simple purchases of standard equipment with established suppliers

For detailed information on equipment loan structures, see our equipment loans Australia guide.

What Medical Equipment Lenders Consider

Medical professionals often receive favourable consideration because:

• Healthcare practices typically have stable, predictable income
• Professional qualifications reduce business risk
• Medical equipment has clear resale value
• The profession has low default rates historically

Key factors lenders assess:

• Practice trading history (usually 12-24 months minimum)
• Personal and business credit history
• Current debt levels and serviceability
• Equipment supplier credibility
• Practice structure (sole practitioner, partnership, company)

Tax Considerations for Medical Practices

Medical equipment finance may offer several tax benefits, though these depend entirely on your individual circumstances:

• Depreciation deductions on owned equipment
• Interest payment deductions
• Lease payment deductions (for finance leases)
• Potential instant asset write-off eligibility (check current thresholds)

Important: Tax benefits vary significantly based on your practice structure, income level, and specific circumstances. Always consult your accountant before making financing decisions.

Structuring Medical Equipment Finance

For new practices (less than 2 years trading):

• May require personal guarantees or security
• Focus on demonstrating qualifications and experience
• Consider starting with smaller equipment purchases
• Build lending relationships progressively

For established practices:

• Access to more competitive rates
• Larger loan amounts available
• More flexible structures possible
• Faster approval processes

For practice expansions:

• Multiple equipment items can be bundled
• Existing banking relationships may provide advantages
• Consider timing with revenue growth

Getting Medical Equipment Finance

Modern platforms allow you to compare options quickly, while specialist brokers understand the unique needs of medical practices and can navigate complex equipment purchases or multi-item financing.

Most medical equipment suppliers work with finance providers who understand their equipment, which can streamline the approval process significantly.

Compare Medical Equipment Finance Options

Ready to finance your medical equipment?

Loan Phone connects healthcare professionals with competitive equipment finance options from specialist lenders who understand medical practices.

• Fast Online Comparison — See personalised rates from multiple lenders
• Specialist Healthcare Expertise — Brokers who understand medical practice needs
• Flexible Structures — Chattel mortgage, lease, or loan options

Speak with specialists:

For broader equipment financing guidance, see our asset finance Australia overview.

Related Resources

Last updated: October 7, 2025