The short version
A medical practice loan is a business loan that helps a doctor, dentist or allied health owner buy, set up or grow a practice. It can pay for goodwill, a fit-out, working capital or the building you work from. Equipment is usually funded separately. Our guide to medical equipment finance covers that side.
Healthcare is one of the few areas where some lenders will fund a business purchase with no property as security. They lend against the practice and the practitioner. Lenders see registered doctors and dentists as lower-risk borrowers, and their health policies show it.
- To buy a practice, or buy into one, look at a goodwill loan.
- To build new rooms or refit old ones, look at fit-out finance.
- For cash flow while the books fill up, look at an overdraft or line of credit.
- To buy the building you work from, look at a commercial property loan.
This guide covers business loans for practices only. It doesn't cover home loans.
What a medical practice loan pays for
"Medical practice loan" isn't one product. It's a name for a few kinds of business loans that practices use.
| What you need | The usual loan | What the lender holds as security |
|---|---|---|
| Buy a practice, or a share of one | Goodwill loan (a term loan) | The goodwill and equipment, sometimes property |
| New rooms or a refit | Fit-out loan, often drawn as you build | The practice, plus your guarantee |
| Set up a new clinic | Establishment loan, often fit-out plus working capital | Your income, your plan and your guarantee |
| Day-to-day cash flow | Overdraft or line of credit | The practice, often with a guarantee |
| Buy your premises | Commercial property loan | The property |
A lot of deals use more than one of these. A practice purchase might need a goodwill loan, a small refit and an overdraft on day one. For the general rules on how lenders assess a business, see how to get a business loan.
Goodwill loans: buying a practice or buying in
A goodwill loan pays for the part of a practice's value that isn't equipment. That's mainly the patient list and the billings. When you buy a practice, or buy a share from a partner, most of the price is often goodwill.
Most business lenders won't lend much against goodwill. Some health lenders will. Two examples, checked October 2026:
- BOQ Specialist says it can lend up to 100% of the purchase price of an existing practice, subject to credit approval. It takes the goodwill and equipment as security, not your home. Terms run up to 15 years, with up to three years interest only.
- NAB Health says medical, dental and vet practices can borrow up to 100% of the purchase price, subject to eligibility criteria.
Those are top-end figures. Not every doctor or every deal will get them. The lender still has to be happy with the practice's numbers and with you.
A partner buy-in works much the same way. BOQ Specialist says it only takes security over the share you're buying, so the other partners aren't affected.
Before you sign, a few things are worth sorting out. NAB Health's tips for buyers cover most of them.
- Get your own lawyer. The seller's solicitor usually draws up the contract.
- Check the lease. How long is left? Does it transfer to you? Will the landlord want a bank guarantee? NAB Health suggests putting the guarantee in your finance request.
- Ask for a restraint of trade clause, so the seller can't open up down the road and take patients with them.
- Look at how the price is split between equipment and goodwill. NAB Health notes the split affects tax and finance rates. Your accountant should look at this early.
Some health lenders don't ask for a formal practice valuation. BOQ Specialist says it doesn't need one. NAB Health says it doesn't always need one if your accountant does the due diligence.
Medical fit-out finance for new rooms or a refit
Medical fit-out finance pays for the build. That means walls, cabinetry, plumbing, electrical work, sinks and flooring. A lender can't easily resell a fit-out, so it usually lends against the practice and you rather than the fit-out itself.
The hard part is timing. Builders invoice in stages, and the new rooms aren't earning yet. Some health lenders deal with this through a facility you draw on as invoices come in.
BOQ Specialist's escrow facility is one example (checked October 2026). It says you only pay interest on the money you've drawn. You don't make repayments until the project is finished. Then the balance moves into a longer loan with set repayments.
Fit-out and equipment are often funded together. The tax rules for each are different, so check with your accountant before you set up the loan. Our medical equipment finance guide explains the split.
How to fund a new clinic
A new clinic has no trading history. So the lender looks hard at you instead. That means your registration, your specialty, what you bill now and your plan for the new practice.
Expect the lender to ask for:
- a business plan with cash flow forecasts for the first year or two
- the fit-out quote and the lease, signed or in draft
- proof of what you bill in your current role
- a budget for the months before your appointment book fills up
NAB Health lists establishment loans to cover setup costs and early working capital. Some lenders put the fit-out, equipment and working capital into one package for a new practice. Others split them up.
A new clinic is a harder deal than an established one. The lender may want a deposit or extra security. Fewer lenders will look at it, so it pays to go to the right ones first.
Cash flow and working capital for a practice
A practice can be profitable and still run short of cash. Wages and rent go out every week or month, whatever comes in. A new doctor takes months to build up their patient list. After a purchase, some patients take time to settle with the new owner.
The usual tools are simple:
- An overdraft or line of credit covers day-to-day gaps. You only pay interest on what you use.
- A short-term loan covers a one-off cost, like carrying a new associate while they build their books.
- For bigger one-off spends, our business loans page sets out the main options.
Match the loan to what you're paying for. Don't use a short-term facility for a long-term purchase like goodwill. The repayments will squeeze your cash flow, which is the problem you were trying to fix.
Loans to buy your practice premises
Plenty of practice owners rent. Some buy the building instead. The rent then goes to your own structure, rather than to a landlord. That structure is often a family trust or an SMSF, set up on your accountant's advice.
The loan here is a commercial property loan. For most businesses, a commercial property loan needs a bigger deposit than a home loan.
Some lenders treat healthcare differently and will lend a higher share of the property's value to a practitioner who owns and works in the practice. How specialised the property is also matters, because a fitted-out surgery can be harder to sell than a standard office.
That last point matters. A day surgery or a fitted-out dental clinic has fewer buyers than a plain office. Some lenders will lend less against it for that reason.
You may have heard that doctors can skip lenders mortgage insurance (LMI). Those waivers are mostly on home loans. On a commercial property loan, LMI isn't usually part of the deal. The real question is how much the lender will lend against the property, and that varies a lot between lenders.
What lenders look at
Health lenders assess the practice and the person running it. These are the things they typically check.
- AHPRA registration. Current registration is the starting point. Many lenders also ask for your Medicare provider number.
- Your profession and specialty. Some health policies only cover certain professions, most often GPs, specialists, dentists and vets. Allied health owners may be assessed under a lender's standard business policy instead.
- Time since fellowship or qualifying. A newly fellowed specialist may get a different deal from one with ten years in practice. Some lenders will look at what you're likely to earn, not just what you've earned. BOQ Specialist says it can assess the loan on the practice's income, your own billings, or both.
- Your billings. Your own billings, and the practice's, show what the lender is really backing. For an established practice, expect to show two to three years of figures.
- Insurance. BOQ Specialist asks for life and income protection cover on loans secured by goodwill.
- Your own position. Other debts, assets and whether you'll give a personal guarantee. Most practice loans need one.
Documents you'll need
Every lender has its own list. Most ask for something like this:
- AHPRA registration and Medicare provider number
- photo ID for each borrower and guarantor
- recent personal tax returns and notices of assessment
- practice financial statements, ideally two to three years for an existing practice
- a statement of your assets and debts
- for a purchase: the contract of sale, the seller's financials and the lease
- for a fit-out: the builder's quote and plans
- for a new clinic: a business plan and cash flow forecast
- for premises: the contract of sale (the lender orders the valuation)
Have these ready before you apply. Gaps in the paperwork slow most deals more than the lender does.
How a broker helps
Aurelius Capital is a broker, not a lender. We work with 130+ lenders, including the bank health teams and specialist lenders.
For a practice owner, that means a few practical things:
- We know which lenders have a health policy for your profession, and which will treat you as a standard small business.
- We split the deal properly. Goodwill, fit-out, equipment and premises can sit with one lender or several, depending on what costs less overall.
- We compare the full cost, not just the rate. Fees and loan terms matter as much. Our guide to the true cost of a business loan shows why.
- We get the paperwork right before it goes in, so the lender isn't chasing you close to settlement.
For an overview of what we arrange for practices, see finance for medical professionals. If you have a deal in front of you, send us the details and we'll come back with options. All finance is subject to lender approval.
A quick note: this is general information. Lender policies change, and the figures above are what each lender published when we checked in October 2026. It isn't tax or financial advice. Sort out the structure with your accountant first, then talk to a broker about the finance.