Modern healthcare runs on technology — from digital X-ray and ultrasound to dental chairs, sterilisation systems, and optometry diagnostics. But high-quality equipment is expensive, and paying cash can drain working capital that should be used for staffing, consumables, fit-outs, and day-to-day practice operations.
That’s why medical equipment loans are a common way for Australian doctors, dentists, vets, and allied health businesses to access the tools they need now while spreading repayments over time. The right structure can protect cash flow, support growth, and help your practice keep pace with evolving standards of care.
This article explains how healthcare equipment loans work in Australia, which finance structures are typically used, what affects rates and approval, and the practical steps that can make the process quicker for time-poor medical professionals.
Important note: lender policies vary and approval is never guaranteed. Finance structures have different tax and accounting outcomes, and you should speak with your accountant before committing.
What are medical equipment loans?
A medical equipment loan is a type of business asset finance used to fund new or used equipment for healthcare delivery. In many cases, the equipment acts as security for the finance, which can make it more accessible than unsecured working capital.
Depending on the lender and structure, finance may be available for a single item or for multiple pieces of equipment bundled into one facility.
Common equipment categories include:
- Imaging and diagnostics (including an x-ray equipment loan, ultrasound, radiology and scanning equipment)
- Dental chairs, suction systems, compressors and sterilisation units (loan for dental equipment)
- Optometry testing equipment (optometry equipment loans)
- Veterinary imaging, surgical and monitoring equipment (veterinary equipment loans)
- Practice technology (servers, practice management systems and eligible hardware)
These facilities are often used by both new and established practices — from solo practitioners to larger clinic groups.
Why healthcare professionals finance equipment instead of paying cash
Financing is not just about “affordability” — it’s about business strategy and maintaining clinical capability without overextending the practice.
- Preserve cash flow: keep funds available for wages, consumables, rent and other operational costs.
- Access better technology sooner: invest in equipment that improves patient outcomes and supports new billable services.
- Match repayments to revenue: spread costs over the useful life of the asset.
- Upgrade more easily: leasing structures can suit clinics that refresh equipment regularly.
- Potential tax benefits: treatment depends on structure and your entity type — confirm with your accountant.
For many clinicians, the key is choosing a structure that supports predictable repayments without creating pressure during slower months or seasonal fluctuations.
Finance options for medical, dental and allied health equipment
Different facilities suit different practice goals — especially around ownership, cash flow, and upgrade cycles.
Chattel mortgage
A chattel mortgage is commonly used when the practice wants to own the equipment from day one. The lender holds a mortgage over the asset until the loan is repaid.
It may suit clinics that want long-term ownership and predictable repayments. In many cases (for GST-registered businesses), GST may be claimable upfront on the purchase, subject to accounting advice.
Hire purchase
Hire purchase allows you to use the equipment while paying it off over time, with ownership transferring at the end of the term (once all payments are made).
This can be useful when you want ownership but prefer a structured “pay over time” approach.
Finance lease
With a finance lease, the lender owns the equipment and the practice leases it for a term. End-of-term options typically include paying out a residual, extending the lease, or upgrading (depending on the agreement).
This structure is often used when equipment upgrade cycles are important, particularly for technology that evolves quickly.
Operating lease
An operating lease is closer to a rental model: the lender owns the equipment and you pay for use over a period, often returning it at the end. It can suit clinics that want flexibility and minimal ownership risk.
“Start-up” or step-up repayment structures (where available)
Some lenders offer repayment profiles that start lower and step up later. These can help a new practice ramp up, but the trade-off is typically higher total interest cost over the full term. These structures should be used carefully, with conservative revenue projections.
What affects medical equipment loan rates and approval?
Medical equipment loan pricing and approval depend on both the borrower profile and the asset itself. Lenders commonly assess:
- Credit profile: repayment history, existing liabilities, and recent enquiries.
- Practice cash flow: bank statements, financials and serviceability (ability to repay).
- Time trading: newer entities may face more conservative terms, although options exist.
- Equipment type and resale value: widely used equipment with strong secondary markets is often easier to finance.
- Deposit and loan-to-value: some approvals can be achieved with low or no deposit, but this depends on policy and risk.
- Supplier credibility: reputable suppliers and clear invoices reduce friction in approval.
If you’re searching for location-based terms like Perth medical equipment loans, the core approval principles remain similar Australia-wide — but lender appetite can vary depending on the asset type and the overall deal profile.
Also note: adding a balloon/residual can lower monthly repayments, but it creates an end-of-term obligation. You should have a plan for the residual (payout, refinance, upgrade or sale).
Practical tips to make the process faster for time-poor clinicians
Healthcare professionals are busy, so the “speed” of approval often comes down to preparation. Consider these practical steps:
- Have a supplier quote/invoice ready with full equipment details and delivery timelines.
- Provide clear ID and entity details (ABN/ACN, trustee details if relevant).
- Prepare recent bank statements and/or financials that show stable cash flow.
- List existing debts and repayments upfront (helps serviceability assessment).
- Bundle multiple items into one facility when it makes sense (reduces admin and repayments).
For doctors and practice owners, a common reason to use a specialist is time: an equipment loan for doctors often involves matching lender policy to unique income structures (contracting, private billings, practice ownership, or mixed income streams).
Risks and misconceptions to understand
- “No deposit always means best”: higher leverage can mean higher pricing or tighter policy, depending on the lender.
- “Low monthly repayments are always cheaper”: long terms or balloons can raise total cost.
- Repossession risk: if repayments are missed, the lender may have the right to repossess the equipment, which can disrupt patient care.
- Tax outcomes vary: deductions and GST treatment depend on structure and your circumstances — confirm with your accountant.
FAQ
Can I get medical equipment loans for new or used equipment?
Yes. Many lenders finance both new and used medical equipment, including imaging and dental assets. Approval can be more conservative for older or highly specialised equipment, and may require a valuation or additional documentation.
What is the best loan structure for doctors buying equipment?
It depends on whether you want ownership, how often you upgrade, and your cash flow. Chattel mortgages and hire purchase suit ownership, while leases can suit frequent upgrades. Your accountant can help confirm tax implications.
How do dental equipment loans work?
Dental equipment loans are typically asset finance facilities used for chairs, imaging, sterilisation and practice equipment. Repayments are spread over a term, and the equipment often secures the finance.
Can I finance an X-ray system or imaging equipment?
Often yes. An x-ray equipment loan may be available for eligible imaging assets, with lenders assessing the equipment’s resale value, supplier, and your practice’s ability to service repayments.
Are optometry equipment loans available in Australia?
Yes. Many lenders consider optometry diagnostics and testing equipment, especially where the asset is widely used and has a clear resale market. Your credit profile and practice cash flow remain key.
Do veterinary equipment loans work the same way?
Broadly, yes. Veterinary equipment loans commonly fund imaging, surgical, monitoring and clinic equipment. Lenders will assess the asset type, business profile, and serviceability similar to other healthcare borrowers.
Can a new practice get healthcare equipment loans?
Sometimes. New practices may need stronger supporting information (business plan, cash flow forecast, deposit, or evidence of bookings/contracts). There are lenders that cater to newer ABNs, but terms can be more conservative.
What affects medical equipment loan rates?
Rates are influenced by asset type, term length, deposit (if any), your credit profile, and the lender’s policy. Comparing total cost (including fees and any residual) is more reliable than comparing rate alone.
Medical, dental and healthcare equipment finance is ultimately about balancing patient outcomes with business sustainability. If you choose a structure that protects cash flow, matches the equipment’s useful life, and leaves a buffer for quieter months, you can invest in technology confidently without putting unnecessary strain on the practice.