Medical practice fit-out

The situation

The following is an anonymised composite reflecting a recurring pattern, not a specific settled deal. A specialist medical practitioner leaves a hospital or group practice role to open their own consulting rooms, needing to fund a fit-out, medical equipment and initial working capital before the new practice has any patient billing revenue of its own.

Why it's hard

The practitioner has a strong personal income history, but the new practice entity itself has no trading history at all, which is exactly the gap most standard business lending is built to require. Medical equipment can also be a significant cost, and financing it separately from the general fit-out requires the lender to understand the equipment's value and resale market.

How it can be structured

Equipment finance, structured as a chattel mortgage over the specific medical equipment, funds that portion of the cost against the asset itself, generally assessed on the practitioner's personal income and professional standing rather than the new practice's non-existent trading history. An unsecured business loan, or a facility secured by the practitioner's own property if a larger amount is needed, can fund the fit-out and initial working capital, assessed similarly on the practitioner's strong personal financial position and professional registration; the exit is ordinary servicing from the practice's billing revenue once operational. Lenders experienced with medical professionals typically have streamlined policies recognising the strength of a specialist's income history and professional standing, even where the new entity itself is unproven.

Lenders experienced with medical professionals will often distinguish clearly between equipment with an established resale market, such as general diagnostic or consulting equipment, and highly specialised equipment tied to a narrow sub-specialty, since the latter typically supports a lower loan-to-value ratio given the thinner secondary market if the facility were ever enforced. Where the practitioner is joining or forming a group practice rather than opening entirely solo, evidence of the group's own trading history and patient base can meaningfully strengthen the application, since it demonstrates a more predictable path to billing revenue than a genuinely standalone new practice would present. Some practitioners structure the fit-out and equipment as separate facilities specifically to take advantage of different loan-to-value ratios and terms each asset type supports, rather than bundling everything into a single facility priced at the more conservative end for the whole package. A clear breakdown of Medicare, private health fund and self-funded billing expectations also helps a lender build a realistic servicing picture once the practice opens, rather than relying on the practitioner's own projection alone.

What it typically costs

Pricing for equipment finance reflects the asset's value and resale market, while the fit-out and working capital facility is priced against the practitioner's personal financial strength, both quoted on enquiry once a lender has reviewed the practitioner's income history and the practice plan. Costs are broadly standard for each respective product category.

Timeline

1. Same day — scoping call confirming the practitioner's specialty, income history and the fit-out and equipment plan.
2. 2–5 business days — document collection, including personal income evidence and equipment quotes.
3. 5–10 business days — lender matching and approval.
4. 3–5 business days — settlement and equipment delivery coordination.

Questions we'd ask you

1. What is your specialty, and what has your personal income looked like in recent years?
2. What is the total cost of the fit-out and equipment, broken down by category?
3. Do you have a signed lease for the consulting rooms, and what is the expected opening date?
4. What working capital do you estimate needing before patient billing revenue begins?
5. Is any equipment being purchased second-hand, and does this affect its financeable value?

Related

Asset & equipment finance · Unsecured business loans · Medical professionals · Chattel mortgage