Healthcare Practice Equipment Finance Australia: Medical, Dental & Allied Health Funding

By the Loan Phone team Reviewed by Anthony Moncada, M.App.Fin, Cert IV Finance & Mortgage Broking

Quick Answer

Healthcare practice equipment finance provides Australian medical, dental, and allied health professionals with funding for diagnostic equipment, treatment technology, practice fitouts, and clinical systems. Rates typically range from 6-12% p.a. (indicative only) with loan amounts from $10,000 to $500,000+ and terms of 1-7 years. Specialist healthcare lenders understand practice cash flows and equipment requirements, with settlements possible within days for established practitioners. Most lenders require active AHPRA registration and minimum 12-24 months practice operation, though specialists may consider newly established practices with strong patient bases. Chattel mortgage structures offer potential tax benefits including equipment depreciation and interest deductions (subject to individual circumstances).

Your medical practice needs a $180,000 ultrasound system to expand services and improve patient care. Waiting until you’ve saved enough means lost referrals and missed revenue. Healthcare equipment finance enables immediate acquisition while preserving practice working capital.

Healthcare Equipment Finance Coverage

Medical Equipment:

• Diagnostic imaging (X-ray, ultrasound, MRI, CT scanners)
• Pathology and laboratory equipment
• Surgical instruments and lights
• Patient monitoring systems
• Treatment lasers and therapy equipment
• Sterilization and hygiene systems

Dental Equipment:

• Dental chairs and operator units
• Digital X-ray and imaging systems
• CAD/CAM systems and 3D printers
• Sterilization equipment
• Practice management software
• Compressors and suction systems

Allied Health Equipment:

• Physiotherapy treatment tables and equipment
• Chiropractic adjustment equipment
• Optical diagnostic equipment and lenses
• Podiatry assessment and treatment systems
• Audiology testing equipment
• Rehabilitation and exercise equipment

Explore medical equipment finance and dental equipment finance for specialist practice funding.

Why Specialist Healthcare Lenders?

Healthcare practice finance differs from general equipment lending through understanding of:

• Practice Cash Flow Patterns: Recognition of Medicare billing cycles, private health fund payment terms, and seasonal patient volumes affecting practice income timing.
• Equipment Lifespan: Knowledge of typical replacement cycles for clinical equipment (3-10 years depending on technology) aligning finance terms with equipment useful life.
• Professional Requirements: Understanding of AHPRA registration, professional indemnity, and continuing professional development obligations affecting practice operations.
• Patient Care Priorities: Appreciation that equipment acquisition decisions balance clinical outcomes, patient experience, and practice viability rather than pure financial return.

Finance Structures for Healthcare Practices

Chattel Mortgage (Most Common):

• Immediate equipment ownership
• Potential GST credits on purchase (up to equipment threshold)
• Interest tax deductible
• Depreciation claims available
• Rates typically 6-11% p.a. over 1-7 years
• Suitable for equipment used primarily for income generation

Finance Lease:

• Lender owns during lease term
• Rental payments are operating expenses
• Option to purchase at term end
• Rates typically 7-12% p.a.
• Suitable for technology requiring frequent upgrades

Operating Lease:

• Long-term rental structure
• No ownership intention
• Equipment returned at lease end
• Include maintenance in some structures
• Suitable for practices preferring latest technology

Review equipment finance options for structure comparisons.

Practice Fitout Finance

Beyond individual equipment, healthcare lenders provide:

• Complete Practice Fitouts: Comprehensive funding for new practice establishment or renovation including equipment, furniture, IT systems, and building works. Finance typically $100,000-$1M+ over 5-10 years.
• Technology Upgrades: Practice management software, electronic health records, patient portal systems, and IT infrastructure. Finance $20,000-$150,000 over 3-5 years.
• Reception and Waiting Areas: Furniture, signage, audiovisual systems, and patient amenities. Finance typically $10,000-$80,000 over 3-5 years.

Eligibility for Healthcare Practice Finance

• Professional Registration: Current AHPRA registration (or relevant professional body registration) in good standing required by all healthcare lenders.
• Practice History: Most lenders prefer 12-24 months established practice, though specialists may consider newly established practices with strong patient lists or purchasers of established practices.
• Financial Strength: Demonstration of practice viability through patient numbers, billing levels, and operating cash flow. Professional practices with strong referral networks typically receive favorable assessment.
• Business Structure: Finance available for sole practitioners, partnerships, group practices, and corporate structures. Some lenders specialize in specific practice types.

Frequently Asked Questions

Can I finance practice acquisition and equipment together? Yes, comprehensive practice finance packages can combine practice purchase, existing equipment valuation, and new equipment acquisition into single facility. This provides streamlined approval and consolidated repayments. Total packages commonly $300,000-$2M+ for established practices.

What happens if equipment becomes obsolete before finance term ends? Most healthcare equipment lenders offer upgrade options allowing early replacement while refinancing remaining balance into new equipment loan. This enables practices to maintain current technology without financial penalty. Some structures include planned upgrade provisions at specific intervals.

Do lenders finance refurbished or ex-demo medical equipment? Yes, quality refurbished equipment from reputable suppliers is commonly financed, typically requiring supplier certification and warranty coverage. Ex-demo equipment showing minimal hours qualifies for near-new finance terms. Used equipment finance generally available for units up to 5-7 years old depending on equipment type and condition.

Speak with Specialists

Need expert guidance on your healthcare practice equipment finance application? Email: loans@loanphone.com.au Website: www.loanphone.com.au

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Last updated: 2025-10-28