Medical Finance

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Medical Finance

To support the Australian health sector in providing first class services, the financial services sector is well-resourced with highly effective lending facilities for the purchase of medical equipment. A range of commercial finance facilities are available to suit the different types of operators in this space: sole practitioners, partnerships, specialists, medical centres, clinics, specialist facilities and corporate operations.

Types of Medical Finance

Depending on the set-up of the medical service, a range of lending options are available on either a secured or unsecured basis.

Secured Medical Equipment Finance

For doctors, GPs, specialists, clinics, medical centres and specialist facilities the range of secured finance products for the purchase of medical equipment include:

  • Chattel Mortgage for Medical Equipment
  • Medical Equipment Lease
  • Medical Equipment Rental
  • Comprehensive Hire Purchase (CHP) for Medical Equipment

In each of these loans, the lender uses the equipment as security against the loan. Each offers a differing treatment of tax, GST, balance sheet and depreciation. The decision is based on the accounting method used by your practice – cash or accruals – and the specific benefits of each to your business.

You are welcome to contact us for specific details on each medical loan product.

To decide which is best suited to your practice, we advise you speak with your accountant. We can then assist with sourcing a quote for your requirements.

Unsecured Medical Equipment Finance

For a range of reasons, some borrowers do not provide security against their loan. In these cases Unsecured Finance may be available. This is subject to the guidelines of individual lenders. Business Loans may also be available as an effective form of finance for your purpose. We can assist with more information in this area.

Business Finance

In addition to finance for the purchase of equipment, a range of general business finance is available to the medical sector. These include:

  • General Unsecured Business Loans
  • Non-bank Overdrafts
  • Debtor Invoice Funding
  • Insurance Premium Funding – to fund large insurance premiums such as professional indemnity policies.

Sourcing Medical Equipment Finance

Most banks and financial institutions offer commercial finance facilities to the medical sector. Not all will offer specific medical equipment finance and you may be offered a general business loan.

Using the services of a professional Finance Broker can be extremely beneficial to securing a cost-effective finance package that specifically suits your purchase and your practice.

We can assist in this regard. Please contact us.

As the medical industry is regulated, so is the financial services sector. Finance brokers are required to undergo strict training and checks to be accredited and licensed. Professional brokers should be members of the Financial Brokers Association of Australia (FBAA) and you can refer to their website or contact the association by phone to enquire about individual brokers.

To be most effective, your finance broker should be independent and not aligned with any bank or financial institution and be accredited with an extensive bank and lender panel.