Commercial property loan · Medical practices
Commercial property loan for medical practices
Medical practice finance is lending for GP and specialist practices, covering diagnostic equipment, consulting-room fit-outs, practice purchases and the commercial premises a practice trades from.
How a commercial property loan works for medical practices
Many practices reach a point where paying rent on a purpose-fitted clinic stops making sense. A commercial property loan funds the purchase of the premises, typically with a 20–30% deposit, and lenders view a medical tenancy favourably because the tenant is stable and the fit-out is hard to walk away from. Owner-occupied medical property often prices near the bottom of the commercial range. Consider whether the property should sit in the practice entity, a separate trust or a super fund before you exchange.
The cash-flow pattern we plan around
Steady weekly Medicare and patient billings on a short settlement cycle, punctuated by large one-off capital events such as fit-outs, equipment or a practice purchase.
What medical practices typically fund
- Diagnostic and imaging equipment
- Consulting-room fit-out and expansion
- Buying into or acquiring a practice
- Purchasing the practice premises
- Practice management software and IT
Commercial property loan for medical practices: the numbers
| Typical amounts | $250,000 – $20,000,000 |
|---|---|
| Term | 12–360 months |
| Indicative rates | 6.2% – 9.9% p.a. |
| Repayments | Monthly |
| Speed | 2–6 weeks |
| Documents medical practices usually need | ABN, AHPRA registration and practice structure details · Two years of practice financials or personal tax returns · Equipment quote, contract of sale or fit-out schedule |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Medical equipment finance
Medical equipment finance is secured lending for clinical equipment such as ultrasound machines, imaging systems and examination fit-outs, generally offered to registered practitioners on longer terms and lighter documentation than standard commercial equipment finance.
Practice purchase finance
Practice purchase finance is lending used to buy an existing medical practice or a partnership share in one, assessed on the practice’s billings and the incoming practitioner’s registration and earning history.
What is a commercial property loan?
A commercial property loan is a mortgage over non-residential property such as offices, warehouses, retail or industrial units. It can be full-doc, low-doc or lease-doc depending on how servicing is assessed.