Medical and dental practice finance: equipment and fit-outs

Setting up or expanding a practice means high-value equipment: dental chairs, imaging units, surgical and diagnostic gear, and often a full clinic fit-out. The numbers are large, but the good news is that lenders generally like the health sector, which makes the finance more straightforward than many business owners expect.

This guide covers how medical and dental practices finance equipment and fit-outs, why the sector is well regarded, and how to structure the deal. We are a finance broker with a panel of more than 40 lenders, including those with genuine health-sector appetite.

Why lenders like the sector

Two reasons. First, the borrower profile is strong: practitioners are typically stable, high-income professionals, which de-risks the deal. Second, much of the equipment holds its value and has a real resale market. Put those together and medical and dental finance is among the better-supported equipment categories, often with competitive terms. Browse medical equipment finance and dental equipment finance.

What you can finance

• Dental chairs, OPG and CBCT scanners, CAD/CAM systems and sterilisation equipment
• Diagnostic imaging, surgical and patient-monitoring equipment
• Practice fit-outs and clinic refurbishments
• Practice vehicles where relevant

Standalone equipment that holds value finances cleanly. Fit-out components, like joinery and built-in cabinetry, have weaker resale, so that portion may need a deposit or asset-backing, much like any fit-out. Splitting the equipment and fit-out portions of a deal is often the smart approach.

Structures that suit practices

A chattel mortgage suits equipment you will own long term, letting you claim depreciation and the interest and bring the GST credit forward. A lease keeps upfront cost low and the payments fully deductible, which can suit equipment you expect to upgrade as technology moves. For fast-dating tech, an operating lease lets you use and return rather than own. See business equipment finance structures.

Getting approved

The strong borrower profile does a lot of the work, but lenders still look at time in practice, credit history, and the equipment itself. Newer practices and associateships buying into a practice are common and well understood. If full financials are not ready, low-doc options exist. See how to get approved.

The tax angle

On a chattel mortgage you claim depreciation and interest; on a lease you claim the rental payments. Eligible items under the current instant asset write-off threshold may be deductible in the year they are first used, and financing does not disqualify you. Practice tax can be complex, so confirm the treatment with your accountant. See our tax guide.

This is general information only and not financial, credit, or tax advice. Tax rules and thresholds change. Consider your own circumstances and speak to a professional. All finance is subject to lender assessment and approval.

This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.