Business acquisition finance · Allied health
Business acquisition finance for allied health
Allied health finance is lending for physiotherapy, psychology, podiatry, chiropractic and similar practices, covering treatment equipment, clinic fit-outs, practice purchases and the working capital that carries a growing clinic.
How business acquisition finance works for allied health
Allied health practices are bought and sold regularly, often by a senior practitioner buying out a founder or merging two small clinics. Lenders will consider goodwill for a registered practitioner, though more conservatively than in dental or medical because allied health patients are frequently loyal to a person rather than a clinic. Expect focus on how much of the billing the vendor personally generates, the transition arrangements and any restraint. Vendor finance over one to two years is common and helps align both sides.
The cash-flow pattern we plan around
Session-based income from a mix of private fees, health fund rebates and scheme or insurer payments, with new practitioners taking three to six months to reach a full book.
What allied health typically fund
- Treatment tables and rehabilitation equipment
- Clinic fit-out and additional treatment rooms
- Shockwave, laser and diagnostic devices
- Practice management software and telehealth systems
- Working capital while new practitioners build a book
Business acquisition finance for allied health: the numbers
| Typical amounts | $100,000 – $10,000,000 |
|---|---|
| Term | 24–120 months |
| Indicative rates | 7.5% – 16% p.a. |
| Repayments | Monthly |
| Speed | 3–8 weeks |
| Documents allied health usually need | ABN and AHPRA or professional association registration · 6–12 months of bank statements or practice financials · Equipment or fit-out quote |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
Allied health practice finance
Allied health practice finance is lending to physiotherapy, psychology, podiatry, chiropractic, speech and occupational therapy practices, used for equipment, fit-outs, acquisitions and the working capital of adding practitioners.
Ramp-up funding
Ramp-up funding is working capital that covers the period between hiring a new practitioner or opening a new treatment room and that capacity generating enough billings to cover its own cost.
What is business acquisition finance?
Business acquisition finance is a loan used to fund the purchase of an existing business or a shareholding in one. Lenders assess the target business’s adjusted earnings, the assets included in the sale, the buyer’s deposit and any security offered.
How much deposit do you need to buy a business?
Most lenders expect the buyer to contribute 30–50% of the purchase price in cash or equity. Where the buyer offers property security, the required cash contribution can fall substantially.
What is vendor finance in a business sale?
Vendor finance is where the seller leaves part of the purchase price outstanding, repaid by the buyer over an agreed period. It bridges the gap between the price and what a lender will fund, and signals the vendor’s confidence in the business.
What is normalised EBITDA?
Normalised EBITDA is a business’s earnings before interest, tax, depreciation and amortisation, adjusted to remove owner-specific items such as above-market director wages, personal expenses and one-off costs. Lenders use it to estimate what the business will actually earn under new ownership.
Questions from allied health
Can a physio, psychology or podiatry clinic finance its fit-out?
Yes. Treatment rooms, reception, cabinetry, flooring and treatment equipment can be funded under one fit-out facility with the builder and suppliers paid as the work progresses, repaid over three to five years within the lease term. Equipment such as treatment beds, reformers and diagnostic tools is often financed separately at a sharper rate.
How does a growing clinic fund new practitioners before their books fill?
A line of credit or a short-term unsecured loan covers wages and room costs for the three to six months a new practitioner takes to reach a full book, and is repaid as their billings come through. Lenders assess the clinic’s existing billings, so applying while the current team is busy gets the best terms.
Are allied health practitioners eligible for professional finance packages?
Some lenders extend professional packages to physiotherapists, psychologists, podiatrists, chiropractors, optometrists and other registered practitioners, with lighter documentation and sharper pricing on equipment and practice finance. Registration and a practice plan are the key documents. A broker knows which lenders include your profession.
Can I finance buying an allied health practice?
Yes. Practice acquisition finance funds the purchase of an existing clinic or a buy-in against its billings and goodwill, with lenders looking at the practice’s financials, referral base and the practitioners staying on. Equipment and fit-out can be financed alongside the purchase.