Medical and Dental Practice Finance
For medical and dental professionals purchasing a practice, buying commercial premises, funding equipment and fit-out, or accessing working capital and business growth funding.
What is medical and dental practice finance?
Medical and dental practice finance covers a range of lending needs specific to health professionals and practice owners. This includes purchasing an existing practice, buying the commercial premises the practice operates from, funding equipment and clinical fit-out, accessing working capital or cash flow facilities, and financing business acquisition or expansion. Lender policy and appetite can vary depending on the practice type, financials, borrower profile, security, valuation, trading history and individual circumstances.
Finance for buying a medical or dental practice
Practice acquisition finance covers the purchase of goodwill, patient records, equipment, business name and assets. Lenders assess the practice financials, patient retention, referral base, borrower experience and equity contribution. Some transactions may also involve purchasing the property from which the practice operates.
Finance for buying commercial premises
Some practitioners choose to purchase the commercial premises their practice operates from. This is assessed as owner-occupied commercial property finance. The lending assessment considers the property value, the business using the premises, the borrower profile and lender appetite for the asset type and location.
Equipment and fit-out finance
Medical and dental equipment can be financed separately from the practice purchase or property transaction. Equipment finance covers clinical equipment, dental chairs, imaging equipment, fit-out costs and other business assets. The asset serves as security for the finance.
Working capital and cash flow funding
Some practices require working capital facilities to manage cash flow, fund locum costs, cover operating expenses during a transition period or support growth. Lenders assess serviceability, practice financials and borrower profile.
How lenders assess medical and dental practices
- Practice type and location
- Trading history and financial performance
- Patient numbers and retention
- Goodwill value and purchase price justification
- Borrower professional registration and qualifications
- Personal financial position and existing debt
- Security offered — property, equipment, business assets
- Borrower equity contribution
Lender policy and appetite can vary depending on the practice type, financials, borrower profile, security, valuation, trading history and individual circumstances.
Common lending challenges
- Goodwill valuation affecting available leverage
- Lender appetite varying for different practice types
- Insufficient trading history for newly established practices
- Equipment finance and property finance requiring coordination
- Commercial property valuations affecting LVR
Frequently asked questions
- Can I finance the purchase of a medical or dental practice?
- Yes. Practice acquisition finance covers the purchase of an existing medical or dental practice, including goodwill, patient list, equipment and business assets. Lender policy and appetite vary depending on practice type, financials, borrower profile and security position.
- Can I buy the commercial premises my practice operates from?
- In some cases, yes. Owner-occupied commercial property finance may be available for medical and dental practitioners purchasing their own premises. The assessment considers the property, the business, the borrower profile and lender policy.
- Do lenders offer specialist finance for medical and dental professionals?
- Some lenders have specialist products or more flexible policies for certain medical and dental practitioners. Lender policy and appetite can vary depending on the practice type, financials, borrower profile, security, valuation, trading history and individual circumstances.
- What documents are usually required for practice acquisition finance?
- Typically: business financials for the practice being acquired, personal tax returns, ATO Notice of Assessment, bank statements, purchase contract or heads of agreement, information memorandum from the vendor, and evidence of professional registration and qualifications.
Discuss your medical or dental finance needs
Speak with Bridle Partners before approaching a lender. We assess your position and identify suitable lender options.
Contact us