Medical and allied health finance in Australia: what to know before you apply

Direct answer

Medical and allied health clinics in Australia typically need finance for diagnostic and treatment equipment (dental chairs, imaging machines, X-ray and ultrasound, surgical equipment), practice fitout and refurbishment, practice acquisition including goodwill, working capital to cover payroll and supplier costs during Medicare and health fund payment timing gaps, and technology upgrades (practice management software, telehealth infrastructure, patient records).

Healthcare is one of the most resilient sectors assessed by SME lenders. RBA data shows health care has among the lowest stress levels of any Australian industry. Lenders generally view medical and allied health professionals as lower-risk borrowers due to stable demand, recurring patient revenue and strong regulatory standards.

However, the capital requirements can be substantial. A single piece of diagnostic equipment can cost $100,000, $300,000. A full dental or medical fitout can run $200,000, $500,000. Practice acquisitions with goodwill often exceed $500,000.

The right finance structure depends on what is being funded and how the practice generates revenue. Equipment finance is common for physical assets. Working capital loans or lines of credit may suit the timing gap between service delivery and Medicare/health fund rebates. Practice acquisition finance typically involves a mix of equipment finance, goodwill finance and working capital.

Indicative rate context:

Equipment finance from 7.49% p.a.

Unsecured loans from 14.45% p.a.

Secured loans from 7.49% p.a.

Actual rates depend on the lender, practice profile, equipment type, security position and trading history.

Common medical and allied health funding scenarios

Medical and allied health funding needs vary by practice type and stage. Below are common scenarios with the type of finance that typically fits.

Lender types that fit medical and allied health practices

Medical and allied health professionals are generally viewed as lower-risk borrowers. Some lenders offer specialised products and preferential terms for healthcare businesses.

What lenders look at for medical and allied health applications

Medical and allied health practices are assessed differently to most other industries. The resilient nature of healthcare demand means lenders may offer more favourable terms, but they still review specific factors carefully.

Documents and readiness

Medical and allied health finance applications are often more straightforward than general business lending because of the regulated nature of the sector. Having the right documents ready helps secure better terms.

Rates and cost context

Medical and allied health finance rates are among the most competitive for SME lending, reflecting the lower-risk profile of the sector. The indicative ranges below provide a starting reference only.

Equipment finance from 7.49% p.a.: the most common pathway for diagnostic equipment, dental chairs, imaging machines, surgical equipment and fitout assets. The equipment serves as security. Terms up to 7 years to match equipment lifespan. Residual or balloon payments can reduce monthly costs.

Secured loans from 7.49% p.a.: suitable for larger amounts ($100,000, $1,000,000+), practice acquisitions, complete fitouts or multi-site expansion. Secured against property, equipment or business assets. Longer terms (3, 7 years).

Unsecured loans from 14.45% p.a.: for smaller amounts ($5,000, $150,000), working capital, software, marketing or short-term timing gaps. Faster approval but higher cost.

Line of credit from 14.55% p.a.: for ongoing cash-flow management between service delivery and Medicare/health fund payments. Interest only on drawn amounts.

Practice acquisition finance: rates depend on the structure (equipment finance portion, goodwill finance, working capital). Goodwill finance may carry slightly higher rates than equipment-backed portions because goodwill is intangible.

Important caveats:

- Advertised starting rates apply to the strongest applications only. Real rates depend on practice profile, trading history, credit history, equipment type and lender policy.

- Equipment finance for new practices (no trading history) may have slightly higher rates until trading data is established.

- Tax advantages differ by structure. Equipment loans and chattel mortgages may allow depreciation and GST claims. Finance leases may offer different tax treatment. Speak with your accountant about the best structure for your practice.

- The instant asset write-off threshold changed to $1,000 from 1 July 2025 (down from $20,000). Check current ATO rules and discuss timing with your accountant.

Next steps

Medical and allied health finance starts with identifying what needs funding: equipment, fitout, practice acquisition, working capital, or a combination.

Step 1: Separate the funding need into asset-backed (equipment, fitout) and non-asset (goodwill, working capital, software) components. This helps match each portion to the right product type.

Step 2: Check whether the practice has security (equipment, property) that could unlock lower rates for asset-backed portions.

Step 3: Use the Comparison One funding-fit check below to narrow which product type and lender pathway may fit.

Step 4: Prepare your documents: bank statements, BAS, AHPRA registration, equipment quotes, lease: before approaching any lender.

Step 5: Speak with your accountant about the tax implications of different finance structures (equipment loan vs chattel mortgage vs finance lease) before choosing a product.

Step 6: Compare offers on total cost, repayment frequency and term length, not just the headline rate.

Comparison One helps narrow the starting point. We do not lend money or provide financial advice. We help medical and allied health practitioners compare funding pathways and move toward a realistic next step.