Business loans for medical professionals

Business loans for medical professionals

Starting your own medical practice? Here’s how to get the business loan you need to make it happen.

Running your own medical practice requires sound financial knowledge and management skills. Whether you’re establishing a new medical practice or looking to buy an existing one, it’s important that you understand the financing options that are available to help you run a successful business.

There are several business loan options available for Australian medical professionals, so let’s take a closer look at what those loans are and how they can benefit your business.

How can my business benefit from a loan?

Business loans for medical professionals can provide funding for a wide range of purposes, such as:

  • Startup finance to help you establish a new practice and fit out your business premises
  • Funding to purchase an existing practice
  • Money to buy or upgrade business equipment
  • Managing ongoing cash flow needs
  • Covering the day-to-day costs of running your business, such as paying staff and marketing costs
  • Meeting the expense of extending or expanding your practice

Types of loans to consider

What business loan does your medical practice need? Consider the following finance options:

Loan typeAmountLoan featuresRepayment
Line of credit$5,000 – $100,000,000
  • Fast access to cash
  • Manage ongoing expenses and deal with unexpected emergencies
  • Only pay interest on the money you spend
  • Can be ongoing or have a fixed term (1 - 5 years)
Regular, minimum repayments towards your loan balance
Business overdraft$10,000 – $100,000,000
  • Linked to business bank account
  • Can be accessed once you have exhausted the other funds in your account
  • Secured and unsecured loan options available
  • Variable interest rates apply
  • Can help you meet unexpected expenses
Ongoing account, minimum repayments required
Fixed term business loan$5,000 – $500,000
  • Borrow a lump sum and repay it over a fixed period
  • Fixed or variable interest rates available
  • Secured and unsecured loan options
  • Safe and stable option
Regular fixed loan repayments
Equipment loanThe cost of equipment
  • Access the funds you need to buy specialised medical equipment
  • Fixed or variable interest rates available
  • Allows you to use the equipment while you are paying it off
  • Potential tax benefits
Regular repayments required
Short-term business loan$5,000 – $250,000
  • Lump-sum loans with terms ranging from 3 to 12 months
  • Cover unexpected expenses or seasonal cash flow shortages
  • Quick and easy application process
Daily (or sometimes weekly) repayment schedules

How to compare business loans for medical professionals

There are several factors you need to consider when comparing business loans, including:

  • Interest rates. The lower the interest rate, the less your loan repayments will be. However, remember to consider the interest rate in line with the fees and other features of a loan before deciding whether it’s right for you.
  • Loan fees. Make sure you read the fine print to learn of any upfront and ongoing fees that apply to the loan. Upfront fees include establishment, application and legal charges, while ongoing monthly or annual fees may apply.
  • Loan amounts. Be aware of any minimum or maximum limits that apply to a loan. For example, if you choose a line of credit, many lenders will require you to borrow a specified minimum amount.
  • Loan repayments. How much will you need to repay towards the loan each month? Can you realistically afford that amount? Some lenders offer flexible repayment terms to borrowers in the medical profession, such as monthly repayment amounts that start out low and then gradually rise as your cash flow increases.
  • Loan terms. How long will you have to repay the money you borrow? Can you spread the repayments out over several years, or will you need to pay off the loan in full within a shorter period such as 12 months?

Loans you can apply for today

Rates last updated February 25th, 2018
Name Product Min Loan Amount Max. Loan Amount Loan Term Application Fee Product Description
Prospa Business Loan
$5,000
$250,000
0.25 to 2 years
$0
Apply for up to $250,000 and receive your approved funds within one business day. Note: Businesses must have a turnover of more than $5,000 per month and be able to demonstrate 6 months of trading history.
NAB QuickBiz Loan
$5,000
$100,000
1 to 3 years
$0
An unsecured business loan from $5,000 that can be processed in 1 business day. Businesses that apply and are approved before 30 April 2018 are eligible for a discounted interest rate of 12.95% p.a.
Moula Business Loan
$5,000
$250,000
0.5 to 2 years
$0
Small business loans of up to $250,000 approved and funded within 24 hours.
Transparent fees and rates. Note: Business must have been operating for at least 12 months and have monthly sales of at least $5,000.
Spotcap Loans
$10,000
$400,000
2 years
$0
Take advantage of a fixed interest rate and no upfront fees with this business loan, available up to $400,000. Note: Business must have been operating for at least 18 months and have turnover over $200,000.
Sail Unsecured Business Loan
$5,000
$100,000
1 year
2.5% origination fee
Apply for up to $5,000 even if you have bad credit. Note: Business must have been operating for at least 6 months and have turnover over $50,000.
OnDeck Business Loans
$10,000
$150,000
0.5 to 2 years
$0 (2.5% origination fee)
Apply online for up to $150,000 with OnDeck and receive approved funds in one business day.
businessloans.com.au Flexible Business Loan
$5,000
$500,000
0.5 to 1 years
1.5% Initial draw down fee
A 100% online business loan with amounts available from $5,000. Flexible eligibility criteria and transparent rates and fees.

Compare up to 4 providers

Costs to consider if starting a new practice

For some medical professionals, the opportunity to build their own practice from the ground up is an exciting proposition. If you’re thinking of starting your own medical practice from scratch, there are several expenses you will need to factor into your budgeting calculations, including:

  • Buying or leasing business premises
  • Fitting-out your business premises
  • Purchasing expensive medical equipment
  • Acquiring other essential office supplies
  • Insurance premiums
  • Advertising and marketing expenses to develop and expand your customer base
  • Hiring and paying staff

Costs to consider if you’re purchasing an existing business

If you’ve decided that purchasing an existing medical practice is a better option, remember that there are still several costs you need to consider. However, the business finance options available to you will vary, depending on whether you buy the business only (leasehold) or the business and the property where the business is located (freehold).

Under a leasehold arrangement, you buy the existing business and typically also the fittings and fixtures inside the business premises. However, you don’t buy the business premises and will instead be taking over the lease. Most lenders will be willing to let you borrow up to 50% or 60% of the value of the business.

With a freehold, you purchase both the existing business and the commercial property where it is located. In this scenario, it’s often possible to borrow up to 100% of the property’s value.

Apart from the actual cost of purchasing the business and potentially the business premises, other costs to consider when buying an existing practice include:

  • Any existing debts the business may have
  • Equipment upgrades that may be required
  • Staff salaries
  • Insurance costs
  • A practice fit-out or renovation to update your business

How to get approved for a business loan

If you’re considering applying for a business loan, there are a few simple things you can do to improve the chances of your application being approved:

  • Check the eligibility criteria. Read the fine print to make sure you satisfy all of the loan eligibility criteria before you apply.
  • Prepare a business plan. Whether starting from scratch or buying an existing practice, make sure you have a detailed and realistic business plan in place that outlines how your business will grow in the future.
  • Get expert advice. Get an independent accountant to crunch the numbers and provide expert advice. This will help you make an informed decision about whether to buy an existing practice or start a new one, and you’ll have help in assessing your financing options.
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