Financing a $1 Million Mobile DEXA Expansion
A rheumatologist needed approximately $1 million in finance to launch a mobile DEXA scanning service, but securing funding quickly was critical to getting the expansion underway. By structuring the application around a detailed five-year cash-flow forecast, we gave the lender confidence in the business’s ability to service the new debt. The result was finance approved within just three days, at highly competitive asset-finance rates, allowing the client to move forward with the expansion without a lengthy credit process or uncertainty around funding.
- Client
- Rheumatologist, existing client
- Location
- Regional Western Australia
- Funding
- Approx. $1 million
- Approval
- Within three days
The Client
A rheumatologist and existing client approached us about expanding his medical business into a new mobile service.
The project involved purchasing and fitting out three buses with DEXA (bone density scanning) machines, allowing the practice to provide bone density scanning services to patients across regional Western Australia.
The Opportunity
The project required approximately $1 million in funding, comprising:
- Three buses at approximately $219,000 each, including fit-out
- Three DEXA machines at approximately $80,000 each
- Additional staffing and operating costs associated with the expansion
The key challenge was demonstrating to the lender that the existing business could continue servicing its current commitments while comfortably supporting the additional debt associated with the expansion.
It wasn’t enough to demonstrate that the business was profitable. The lender also needed to understand when cash would actually flow into the business and whether there would be sufficient cash available to meet loan repayments and operating expenses as the new service was established.
The Solution
We worked closely with the practice manager, who prepared detailed profit-and-loss forecasts covering the proposed expansion.
These forecasts included projected staffing costs, vehicle finance, DEXA equipment costs and other anticipated expenses.
We then translated those projections into a detailed five-year cash-flow forecast, providing the lender with a clear picture of how the expansion would affect the business’s cash position over time.
This was an important part of the submission because profitability and cash flow are not necessarily the same thing. A business can be profitable on paper but still experience cash-flow pressure if revenue is received later than expenses and debt repayments fall due.
The Outcome
The finance was approved within three days and proceeded through an automated approval process rather than requiring a lengthy full credit assessment.
The lender also offered highly competitive asset-finance pricing, significantly better than the rates the client might typically expect for business asset finance.
The result was that the rheumatologist was able to move forward with a significant business expansion quickly, with certainty around the funding.
The Takeaway
For medical professionals undertaking significant practice expansions, presenting the right information to the lender can be just as important as the underlying strength of the business.
A well-structured application, supported by realistic cash-flow forecasting and a clear explanation of how the investment will support future growth, can help a lender understand the opportunity and make a faster credit decision.
Planning a practice expansion?
We’ll help structure the application so the lender sees the cash-flow picture clearly, not just the profit on paper.