Quick Answer
Aged care equipment finance enables Australian aged care facilities, nursing homes, and home care providers to acquire essential assets like hospital beds, hoists, and medical devices without significant upfront capital outlay. This specialized financing, typically structured as a chattel mortgage or commercial hire purchase, offers loan amounts from $10,000 to over $5 million with terms of 1-7 years. Indicative rates in 2026 for established businesses range from 7-10% p.a. (indicative only) depending on factors. Most lenders require a minimum 12-24 months trading history. Modern comparison platforms can provide efficient assessment, with settlements possible within 24-48 hours for straightforward applications (subject to lender and circumstances).
| Business/Borrower Profile | Indicative Rate | Typical Term | Common Use/Equipment |
|---|---|---|---|
| Established (2+ years, strong) | 7-10% p.a. | 3-7 years | Hospital beds, patient hoists, medical devices |
| Standard (1-2 years) | 10-13% p.a. | 1-5 years | Mobility aids, kitchen/laundry equipment |
| Newer/Specialist Assets | 13-16%+ p.a. | 1-3 years | Advanced diagnostic tools, specialised vehicles |
Rates are indicative examples only. Actual rates depend on individual circumstances, lender assessment, and the specific equipment being financed.
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By the Loan Phone team · Reviewed by Anthony Moncada, M.App.Fin, Cert IV Finance & Mortgage Broking, Director
The Challenge of Equipping Aged Care Facilities
Australian aged care facilities face a constant need to invest in modern, safe, and efficient equipment to deliver high-quality care, comply with strict regulations set by the Aged Care Quality and Safety Commission (ACQSC), and enhance resident comfort. From specialised hospital beds and patient hoists to advanced medical devices, laundry systems, and even commercial vehicles, these assets represent significant capital expenditure. For many aged care providers, funding these essential upgrades outright can strain cash flow, impacting operational stability. This is where aged care equipment finance becomes a crucial tool, allowing businesses to acquire necessary assets without depleting working capital.
What is Aged Care Equipment Finance?
Aged care equipment finance refers to specific loan products designed to help businesses in the aged care sector purchase or lease the physical assets they need. These finance solutions enable facilities, nursing homes, and home care providers to spread the cost of equipment over an agreed term, typically 1 to 7 years, making large investments more manageable. Unlike traditional business loans, equipment finance uses the purchased asset itself as security, often leading to more favourable terms and potentially faster approval processes. It’s a strategic way to ensure your facility remains compliant, competitive, and capable of providing excellent care in 2026 and beyond.
Types of Equipment You Can Finance
A wide array of equipment essential to aged care operations can be financed. This includes:
- Medical & Mobility Aids: Hospital beds, patient hoists, wheelchairs, mobility scooters, pressure care mattresses, walking frames, commodes.
- Clinical Equipment: Diagnostic tools, vital signs monitors, defibrillators, oxygen concentrators, medication dispensing systems.
- Facility Infrastructure: Commercial kitchen equipment, industrial laundry machinery, specialised cleaning equipment, air conditioning systems, generators.
- Technology: Nurse call systems, patient management software, IT infrastructure, telehealth equipment, security systems.
- Vehicles: Patient transfer vehicles, minibuses, vans for community care services.
Common Aged Care Equipment Finance Options
Several finance structures are available for aged care equipment finance, each with distinct features and tax implications. Important: Tax benefits depend entirely on your individual business structure, circumstances, and how you use the asset. The information below is general in nature only. Always seek independent advice from a qualified tax professional or accountant before making any financing decisions.
Chattel Mortgage
A popular choice, a chattel mortgage allows your aged care business to take immediate ownership of the equipment upon purchase. The lender holds a ‘mortgage’ over the asset as security, releasing it once the loan is fully repaid. Businesses typically claim the full GST input tax credit upfront and can depreciate the asset.
Commercial Hire Purchase (CHP)
Under a CHP agreement, the lender purchases the equipment on behalf of your business, which then hires it for a fixed term. At the end of the term, once all payments are made, ownership transfers to your business. GST is generally paid on the purchase price, and businesses can claim depreciation and interest.
Finance Lease
With a finance lease, the lender retains ownership of the equipment, and your business pays regular lease rentals for its use. At the end of the lease term, you typically have options to purchase the equipment for a residual value, extend the lease, or return the asset. Lease payments are generally tax-deductible.
Eligibility Criteria for Aged Care Equipment Loans
While specific requirements vary by lender and loan amount, most traditional lenders, including major banks like CBA, NAB, Westpac, and ANZ, typically look for:
- Trading History: Minimum 12-24 months of established trading history.
- Financial Health: Demonstrated profitability and strong cash flow.
- Credit History: A clean business and director credit history. If you’re looking to improve your credit score, starting early is key.
- Asset Use: The equipment must be primarily for business use (51%+).
- ABN & GST Registration: Valid Australian Business Number (ABN) and GST registration.
However, specialist non-bank lenders such as Pepper, Liberty, and Prospa may offer more flexible criteria for newer businesses, those with limited trading history, or complex scenarios. Eligibility criteria may vary by industry and specific requirements vary by loan amount, asset type, and industry. If you’re unsure about your credit score or eligibility, get in touch – we can help you find out.
How Loan Phone Streamlines Your Finance Search
Navigating the landscape of aged care equipment finance can be complex, with numerous lenders offering different rates, terms, and conditions. Modern comparison platforms like Loan Phone simplify this process significantly. We provide access to over 100 lenders, including major banks and specialist equipment financiers, allowing you to:
- Compare Options Quickly: Receive personalised finance options tailored to your aged care facility’s needs without impacting your credit score.
- Access Diverse Lenders: Find solutions for various business profiles, from established providers to newer facilities or those with “left-of-centre” scenarios.
- Benefit from Expertise: Our team of specialist brokers is available to provide expert guidance, helping you understand complex finance structures and secure the best possible terms.
Our streamlined system allows you to get approved on an apples-for-apples basis much quicker than any other broker or direct bank option, ensuring your facility can acquire essential assets efficiently.
Frequently Asked Questions
What kind of equipment can I finance for my aged care facility? +
You can finance a wide range of essential equipment, including hospital beds, patient hoists, mobility aids, medical devices, commercial kitchen and laundry equipment, IT infrastructure, and even patient transfer vehicles. The key is that the equipment must be primarily for business use within your aged care operations.
How long are typical loan terms for aged care equipment finance? +
Typical loan terms for aged care equipment finance in Australia range from 1 to 7 years, depending on the asset's useful life, the loan amount, and the lender's policies. Longer terms can result in lower monthly repayments, but may incur more interest over the life of the loan.
Can I get finance for used aged care equipment? +
Yes, businesses can finance used aged care equipment through various finance structures. Lenders like NAB, CBA, and specialist equipment financiers often consider used assets, though age restrictions (typically 10-15 years maximum age for some assets) and condition assessments apply.
Do I need a deposit for aged care equipment finance? +
While a deposit is not always required, offering one can sometimes improve your loan terms or interest rate, especially if your business is newer or has a developing credit profile. Many lenders offer 100% finance options for established businesses with strong financials.
How quickly can I get approved for aged care equipment finance? +
Initial credit decisions for straightforward applications may be provided within 24-48 hours, though this refers to the approval decision itself. Complete settlement timeframes vary based on documentation execution speed, asset delivery, and vendor coordination. Streamlined platforms can help accelerate the process significantly compared to traditional applications.
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Related Resources
Explore these related guides for business owners and ABN holders:
Disclaimer: This article provides general information only and should not be relied upon as financial or tax advice. Rates, terms, and eligibility vary by lender and individual circumstances. Tax benefits are subject to your specific business structure and circumstances. Always seek independent professional advice from a qualified accountant and financial adviser before making financing decisions. Information current as of April 2026 and subject to change without notice. All finance applications are subject to lender credit assessment and approval. No guarantees are made regarding approval, rates, or timeframes.
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Last updated: 2026-04-16