Fit-out finance · Medical practices
Fit-out finance 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 fit-out finance works for medical practices
A consulting-room fit-out involves compliant treatment rooms, reception and waiting areas, cabinetry, plumbing to basins and specific lighting and privacy requirements. Almost none of it can be removed and resold, so lenders assess fit-out finance on the practice rather than on the assets. Spreading a $300,000 fit-out over the lease term keeps the practice’s cash intact for staffing the extra rooms. Match the term to the lease including exercised options, and get any landlord contribution documented before we structure the facility.
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
Fit-out finance for medical practices: the numbers
| Typical amounts | $20,000 – $1,500,000 |
|---|---|
| Term | 12–60 months |
| Indicative rates | 9.5% – 22% p.a. |
| Repayments | Monthly |
| Speed | 3–10 business days |
| 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 fit-out finance?
Fit-out finance is business lending used to fund the construction or refurbishment of commercial premises, including joinery, flooring, lighting, signage and the equipment installed. It typically combines secured equipment finance with an unsecured component for fixed works.
Can leasehold improvements be financed?
Yes, but usually not as secured equipment finance, because fixed improvements attach to a building the borrower does not own. Lenders fund them through unsecured facilities or specialist fit-out products, priced above standard asset finance.
How does a lease term affect fit-out finance?
Lenders will not normally amortise fit-out debt beyond the remaining term of the premises lease, including exercisable options. A five-year lease generally means a fit-out loan of five years or less.