
Get exclusive money-saving offers and guides
Straight to your inbox
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Australians are becoming increasingly conscious of their own health. As such, Australians of all ages are embracing allied health services, including physiotherapy. The Australian government has also recognised the the benefits of physiotherapy, particularly for Australia's ageing population. Medicare coverage for physiotherapy has increased over the past decade. Private health insurers have also increased physiotherapy benefits to stay competitive.
The demand for physiotherapy in Australia has never been higher. Are you a physiotherapist looking to open your own practice or purchase an existing one? Read on to find out everything you need to know about loans for physiotherapy practices.
When you're considering going into business on your own as a physiotherapist, the first decision is whether to start your own practice or to purchase an existing practice.
Starting your own physiotherapy practice has the emotional advantage of building something from the ground up. Like other professionals, physiotherapists train for years to achieve their qualifications. Many physiotherapists find the idea of building their own client base and creating a legacy in your own name enticing.
Purchasing an existing physiotherapy practice can be a better financial and professional choice. Established practices come with an existing client base and an element of standing within the community. The practice may have existing ties and referral agreements with the local medical community. In addition, the practice could already be approved to provide private health services.
The start-up costs for each business model can vary, and there is no set rule about which involves the greater initial outlay. Starting your own practice will incur costs for the initial fit-out and equipment purchase. This may not be more than the costs of purchasing an existing practice outright.
If you choose to purchase an established physiotherapy practice, consider the following factors before making an offer.
The financial industry considers physiotherapy a stable industry, secure in the long-term. Added to this are the above-average incomes earned by physiotherapists in Australia. As such, banks and other lenders consider physiotherapists to be prime borrowers, giving benefits that aren't available to other corporate lenders.
Lenders are keen to do business with prime borrowers, and will offer favourable loan terms and other benefits, including:
The key to financing a physiotherapy practice is to look for lenders actively pursuing allied health professionals. This is one instance where it may not pay to stay with the same bank that you typically show loyalty to. Find a lender actively seeking physiotherapy clients and you could secure a zero deposit or low-doc loan with lower than industry-level interest rates and a long loan term.
Loan qualification requirements depend on whether you are starting your own business or purchasing an existing physiotherapy practice.
Starting your own business? You will need:
Purchasing an existing practice? You will need:
Further requirements for any physiotherapy practice loan:
As anyone who has ever compared home loans would know, the big banks and other major lenders in Australia are happy to display their interest rates and policies online. Unfortunately, the same isn't true for commercial property loans. The commercial property loan market is not as regulated as the home loan market. This gives lenders the power to set their own rates and loan terms as they see fit. Conversely, the lack of sets loan terms gives well-placed borrowers more power to negotiate their own terms.
Commercial lenders are not subject to the same legal requirements as home loan lenders to prove that the borrower can afford the loan. However, banks and larger lending institutions are still unlikely to extend credit to a high-risk borrower. If you have unusual financial circumstances, you would benefit from approaching specialist commercial funding and other non-bank lenders. These lenders are more likely look into your circumstances on a case-by-case basis than the big banks.
Trends across Australian lenders suggest that they look favourably on physiotherapy borrowers. If you have a guarantor and a high-value residential property as security, you could borrow up to 100% of the property value. Otherwise, lenders are willing to lend up to 80% of the property value for loans up to $1 million, and up to 70% for loans up to $5 million.
Low-doc and no-doc loans are available but will generally attract a larger deposit. So too will loans to set up a physiotherapy practice under a leasehold arrangement.
Since the banks and other major lenders do not publicise their commercial loan terms and interest rates, consider using a mortgage broker. Mortgage brokers cultivate relationships with key loan officers. This gives brokers valuable insights into the lending criteria and terms of each lender.
Specialist physiotherapists are highly sought after and can charge higher rates than general practices. Play to your strengths and only specialise if you have the requisite training and experience to support your claims. Clients will be happy to pay a premium for specialised physiotherapy services, but these same clients will look elsewhere if they feel you are not as knowledgeable in the specific field as you claim.
Running your own physiotherapy practice can make you feel like you spend more time on administrative tasks than providing treatment. Are you interested in the finer points of running a business and providing excellent customer service? If so, invest in a business management course before commencing trading. Otherwise, hire a business manager to take care of the day-to-day administrative and financial tasks. This will give you the freedom to concentrate on providing your professional services.
Pictures: Shutterstock
From costs and finance options to what materials you’ll need, learn about bathroom renovations in this comprehensive guide.
Become an in-demand nail tech with these online nail technician courses.
Off the back of Christmas spending, a finance expert has warned that your Afterpay habits could negatively impact your home loan application.
Lenders often give discounts to new borrowers, but not to loyal existing customers. Here's how to work out if you're being charged too much.
Learn the key considerations when it comes to starting and growing your smartphone app company.
Find out what you need to know before starting an accounting business.
Here’s how to go about starting a remote IT business to offer installation, servicing and maintenance support to both businesses and households.
Here's how to use your IT skills to start your own network engineering business.
How to start your landscaping business from the ground up.
Follow this ultimate recipe for how to start your cooking business.