Specialist lending for medical professionals
Medical Fit-Out Finance for Practices
Open the new rooms, or upgrade the old ones, without emptying the practice account to do it. Medical fit-out finance in Australia spreads the build and equipment over the life of the assets, and at some lenders funds up to 100%, so an eligible practice keeps its working capital for running the business.
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What Fit-Out Finance Covers in Australia
Medical fit-out finance funds the build and the equipment that turn a bare tenancy into a working practice, from partitioning and plumbing to dental chairs, imaging and reception furniture.
Because the assets hold resale value, lenders secure the finance against them, so an eligible practice funds the fit-out without putting up the family home, matched to the healthcare-aware lenders that price this work.
Consumables and some software licences fall outside it, since a lender needs an identifiable asset it can resell. The fit-out is funded separately from a practice purchase, which a medical practice finance broker can arrange alongside it, and where you own the premises you can hold the premises in super as a separate business-real-property loan.
How the finance is structured, and how much is funded, depends on the assets, the practice's earnings and the lender, so it is set up for your specific fit-out.
Ways to Finance a Fit-Out
The build and equipment are usually funded through one of four structures, matched to the assets:
Chattel Mortgage
You own the asset from day one and repay over the term. A chattel mortgage suits long-life equipment such as dental chairs and sterilisers, where ownership and resale value are worth holding.
Finance Lease
The lender owns the asset and you pay rent, with options at the end of the term. A finance lease suits fast-changing technology such as imaging and scanners that you may upgrade.
Hire Purchase
You use the asset and take ownership after the final payment. This sits between owning outright and leasing, and suits a practice that wants ownership without the full upfront cost.
Fit-Out Facility
Build works and equipment are bundled into one facility, sometimes with working capital, through a bundled fit-out facility. This suits a full practice build or refurbishment funded as a package.
Tax treatment differs by structure and is a matter for your accountant, so treat these as a general guide.
What Lenders Assess
Because the security is the asset, lenders weigh the equipment and the practice together:
Asset Type
The kind of assets and how well they hold value, since consumables and some software cannot be financed.
Practice Earnings
The practice's earnings, along with your profession and current registration, which mark a lower-risk borrower.
Trading History
For a new practice, your contracts, projections and registration stand in for years of accounts.
Security Position
Whether the finance stands on the assets alone or needs broader support from the practice.
What a lender counts and how it structures the finance vary by lender and asset and can change, so treat these as a general guide.
How a Fit-Out Is Financed
The steps run in order, from first contact to drawdown:
- Scope the fit-out. We look at the build, the equipment and the timing, and how it fits any practice or premises loan.
- Choose the structure. We match long-life and fast-changing assets to a chattel mortgage, lease or fit-out facility.
- Lender match. We compare the healthcare-aware asset and equipment lenders on rate, term and structure.
- Approval and drawdown. We arrange the facilities and align drawdowns with your build and equipment orders.
- Ongoing support. We stay available as the practice grows and equipment is replaced.
Timeframes depend on the lender, the build and the suppliers, so the stages above are a general guide.
Trade-Offs of Financing a Fit-Out
Spreading the cost keeps cash free, at a cost worth weighing:
Where It Helps
A large cost is spread over the life of the assets, so working capital stays with the business, and at some lenders, up to 100% is funded, keeping the home out of it. The structure can be matched to each asset, and interest or depreciation may be deductible, which is a question for your accountant.
Where It Costs
Financing costs more over time than paying cash, and a fit-out funded the wrong way can reduce what you can borrow for a home or premises purchase later. Leased technology is returned or bought out at the end rather than owned, and consumables and some software cannot be financed at all.
Who Fit-Out Finance Suits
It tends to suit a practice opening, refurbishing or replacing equipment that would otherwise tie up cash the business needs to run. It suits less well a small purchase cheaper to fund from cash, or items a lender cannot resell, such as consumables.
Fit-Out Funded Over Its Life
The worry is usually cash, a fit-out swallowing the money a new or growing practice needs to run. Spread over the life of the assets and structured against them, the bill stops competing with payroll and stock, and we set it up through the healthcare-aware lenders active in Australia so it does the least damage to what you can borrow next.
Frequently Asked Questions (FAQs)
Can I finance a fit-out in leased premises?
Yes. Fit-out finance is commonly used in leased spaces, funding the leasehold improvements and equipment without freehold security. Eligible practices can often fund up to 100% across a fit-out facility and an equipment line.
Is a chattel mortgage or a lease better for my equipment?
It depends on the asset. A chattel mortgage suits long-life equipment you want to own, such as chairs and sterilisers, while a lease can suit fast-changing technology you may upgrade, such as imaging. Tax treatment differs, so confirm with your accountant.
Can a new practice with no trading history get fit-out finance?
Often yes. Specialist lenders read a practitioner's registration, contracts and projections rather than requiring years of accounts. The structure depends on the lender and the deal.
How long do fit-out and equipment terms run?
Commonly around three to seven years, matched to the life of the assets. Longer-life items can sit over a longer term than fast-changing technology, and the right term balances cash flow against the total cost.
Will financing the fit-out affect my home borrowing later?
It can, since the repayments count as a commitment. We structure the fit-out so it does the least damage to what you can borrow for a home or premises purchase, and flag the effect before you commit.
Can I bundle the fit-out with a practice purchase?
Yes, usually as separate facilities alongside the purchase. We structure them so the fit-out and the practice loan work together rather than competing for the same security.
Why use Specialist Broking instead of going directly to my bank?
A bank tends to offer one product. We match each asset to the right structure across the healthcare-aware asset and equipment lenders, and align the fit-out with any practice or premises loan. We confirm how we are paid before any work begins.
Who leads the healthcare lending work at Specialist Broking?
Daniel Jones, founder and chief executive, began his finance career at Medfin Finance, supporting doctors, dentists and allied health professionals, before founding Specialist Broking. The team works with medical professionals across home lending, refinancing, and practice and equipment finance.
How do I get started?
A free 15-minute consultation is the starting point, available through the Specialist Broking website, by phone on +61 423 308 892, or by email at daniel@specialistbroking.com.au.
This page provides general information only and does not take into account your objectives, financial situation or needs. It is not taxation, accounting or financial advice. Lending criteria, rates and terms vary between lenders and can change without notice, and a fit-out depends on the assets and your circumstances. Consider speaking with a qualified professional before acting.
OUR SPECIALIST AREAS
We believe finance should be delivered with care, integrity and expertise, by people who know what it’s like to stand in your shoes.
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Daniel Jones, Founder and CEO, is a former commercial pilot who understands aviation finance: variable rosters, unique allowances and banks that don’t always get a pilot’s income.
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Our team supports doctors, dentists and allied health professionals with finance strategies that evolve throughout their careers, from buying a first home to growing a practice and building long-term wealth.
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Our finance capability runs deep across commercial and investment lending. Led by Daniel Jones, who has worked extensively in medical and professional finance, our team structures lending that supports business growth, cash flow and asset acquisition.
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We know finance is never just about numbers. It is about decisions that shape homes, careers and futures. We support first home buyers, families planning their next move and clients looking to refinance or consolidate debt.
Our Team
CEO and Founder
A former Qantas Group pilot turned specialist broker, Daniel helps aviation, medical and business professionals navigate complex finance with precision. He builds long term relationships with clients, helping them strengthen their financial position and plot a course that makes sense for the long haul.
Specialist Broker
Carly helps clients turn property goals into reality by combining her experience in Sydney's property market and global finance with practical lending advice tailored to each client's circumstances.
How we work
Together, our team helps clients structure lending that is strategic, adaptable and built for the long haul.
STEP 1
Reach out to Specialist Broking.
STEP 2
We get to know you and your goals.
STEP 3
We negotiate with banks and lenders.
STEP 4
We conduct an annual financial health check.
WHAT OUR CLIENTS SAY:
“As an ophthalmologist, my financial situation is a mix of personal and business considerations, and I needed advice that genuinely understood both.
Dan took the time to really get across how my practice operates as well as my personal goals, and helped structure solutions that made sense across home lending and practice setup.”
Hamish Dunn — Opthalmologist