Finance question
Can I get finance to buy a vet practice?
Yes, and a vet practice is one of the few purchases where a lender will fund the goodwill. Health-specialist lenders publish up to 100 per cent of the price for an established practice, while general business lenders usually stop at 50 to 70 per cent, always subject to lender assessment.
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The short answer
Lenders know vet practices, so the lender you pick matters
Most small businesses are hard to fund because the main asset is goodwill, which a lender cannot repossess and sell. Vet practices are the exception. A handful of health-specialist lenders treat registered vets as a known, low-turnover profession and will lend against the practice itself. The published ceiling is high: BOQ Specialist and NAB Health each advertise up to 100% of the purchase price of an established practice, subject to credit approval (vet practice guide). A ceiling is not an offer, and most buyers land well below it.
The reason is the gap between lender types. General business lenders usually limit loans to 50 to 70 per cent of the price, and they want two to three years of financials, the lease and proof of your registration and experience. What you pay also varies widely. Priced listings in the same guide run from $230,000 plus stock for an owner-operated coastal clinic to $1.26m for a freehold animal hospital, and advisers quote 3.5 to 9 times adjusted EBITDA for multi-vet practices. A buyer chasing a $900,000 practice and a buyer chasing a $329,995 mobile practice are asking for very different things.
Ventas is a broker across 40+ lenders, so we can compare the specialist and general lenders for your practice rather than send you to one bank. The usual structure is a practice purchase loan against the goodwill, equipment finance on the plant, and your own funds. If your savings fall short, a property-backed loan secured on your home can cover the rest. There is no upfront fee to you; the lender pays us at settlement.
Do you qualify?
What a lender wants to see on a vet practice purchase.
Practice financials
Two to three years of accounts that reconcile to lodged BAS.
Registration and experience
Your vet registration and clinical record, ideally with some practice management.
A lease that outlasts the loan
A committed term with landlord consent, since a short lease weakens the deal.
A handover
The selling vet or an associate stays long enough to hold the client base.
Why vet practices fund better than most businesses
Specialist lenders exist
Some banks have health teams that price this profession directly.
Equipment is separate security
Imaging and surgical gear can be financed against the assets themselves.
Equity can fill the gap
Property equity can cover the part a lender will not fund.
A worked example
A buyer is looking at a small animal practice asking $895,000. A general lender advances 70 per cent, the top of the usual 50 to 70 per cent range, which is $626,500, leaving a gap of $268,500. Add $12,000 for legal and due diligence and a $60,000 working capital buffer, and the buyer needs about $340,500 of their own money, part from savings and part from a loan against their home. Illustrative only.
Common questions
Frequently asked questions
Can I borrow the full price of a vet practice?
Two health-specialist lenders publish up to 100 per cent of the price for an established practice, subject to credit approval. That is a ceiling. General business lenders usually limit loans to 50 to 70 per cent of the price.
Will a lender fund goodwill on a vet practice?
Often, more readily than for most businesses, because specialist lenders understand the profession. They take security over the goodwill and equipment, and may not need your home as well.
What documents do I need?
Two to three years of practice financials and BAS, the lease with its remaining term, your registration and experience, the vendor's split between goodwill, plant and stock, and details of any security you can offer.
Can I use property to fund the deposit?
Yes. A property-backed loan on your home or another property can fund the equity gap, because the lender relies on the property instead of the practice. The cost is that the property is at risk if the practice struggles.