Finance for physio, dental and allied health clinics

A physio on the corner, a dental practice above the chemist, an optometrist next to the bank. Health clinics have become a fixture of New Zealand main streets and suburban centres, and they’re among the most stable businesses on the square: people book appointments in advance, come back for follow-ups, and rarely stop needing care because the economy is flat.

That stability makes clinics attractive to lenders. But clinic projects are expensive, and a few features of health income are worth understanding before you borrow.

What do clinics usually borrow for?

• Treatment-room fit-outs. Each new room needs walls, plumbing for a basin, data cabling, lighting and sometimes specialist ventilation. See shop fit-out finance.
• Clinical equipment. Dental chairs, imaging, rehab equipment, lasers, diagnostic tools — often with long working lives and high price tags.
• More space. Taking on the tenancy next door or upstairs to add rooms and practitioners. We cover this in taking the shop next door.
• Buying a practice or a share of one. Often the largest single amount a practitioner will borrow in their career.
• Working capital. Covering wages while new practitioners build their books.

What makes clinic income different?

It’s appointment-driven. Booking systems give a reasonably reliable forward view of income. Bring reports showing appointments, cancellations and rebooking rates.

Some of it arrives on a lag. If part of your income comes from funders or insurers, payments may arrive weeks after the appointment. Twelve months of bank statements show the rhythm.

It can depend on people. If one practitioner generates most of the income, a lender will want to know what happens if they leave. Practices with several practitioners and documented agreements are easier to fund.

The calendar is fairly flat. Clinics tend to be quieter over Christmas and early January and steady the rest of the year, rather than swinging with tourism or retail seasons.

How do lenders assess a clinic?

Area	What helps
Income	Regular patient and funder income visible in bank statements
Practitioner mix	Several practitioners, clear agreements, low turnover
Bookings	Appointment data showing demand and rebooking
Equipment	Ownership clear; existing finance disclosed
Lease	Enough term left to justify fit-out costs
Professional standing	Registration and experience of key practitioners

Secured or unsecured for a clinic?

Unsecured term funding — typically $5,000 to $500,000 for trading businesses — suits extra rooms, equipment and smaller fit-outs for established clinics with steady income.

Property-secured business loans — $20,000 to $5,000,000 — suit buying a practice, larger fit-outs, or new clinics where trading history is short. Property security can be a home or commercial property, through a first or second mortgage or caveat-style security.

Equipment finance is often the cleanest way to fund big clinical items, because the equipment itself supports the funding.

Planning something? Tell us about it in a quick enquiry. There’s no credit check to ask.

A note on fit-outs and tax

Inland Revenue says commercial fit-outs — such as non-structural interior walls, electrical cabling and fire protection equipment — can be depreciated separately from the building, while structural elements and waterproofing can’t. If your clinic is in a mixed-use building, the rules depend on the building’s main purpose. Talk to your accountant early, because the tax treatment affects the true cost of your project.

An illustrative example

Illustrative only. A two-practitioner physio clinic has a waiting list and an empty room upstairs it could lease. Fitting out two treatment rooms and a small gym area would let them bring on two more physios.

They price the job, get the landlord’s approval for the alterations, and use an unsecured term facility sized on their consistent patient income. Because new physios take time to fill their books, they also keep a small buffer for wages in the first few months — something the cash gap estimator helps them size.

Before you apply

• Twelve months of business bank statements
• Practice management or booking reports
• Practitioner agreements and a list of staff
• Equipment and fit-out quotes
• Your lease, and landlord consent for any alterations
• For purchases: the practice’s accounts and the sale agreement

What does buying a practice involve?

Buying a practice — or a share of one — is usually the largest amount a practitioner borrows. Beyond the price, it’s worth working through:

• Patient numbers and patterns. How many active patients, how often they return, and how many come through referral relationships that might change with ownership.
• Practitioner agreements. Who stays, on what terms, and what restraints apply to anyone leaving.
• Equipment and fit-out. Age, condition, ownership and any finance still owing.
• The lease or property. Term remaining, renewal rights and whether the landlord will consent to assignment.
• Funding structure. Property-secured loans suit most purchases; equipment finance can sit alongside for new equipment after settlement.

Business.govt.nz’s general advice on buying a business — checking assets, liabilities, contracts and staff retention, and using a lawyer and accountant — applies as much to clinics as to cafés.

See what your clinic could qualify for

Whether you’re adding rooms, upgrading equipment or buying into a practice, start your 60-second enquiry. Asking doesn’t involve a credit check, your enquiry stays with one team instead of being sent around, and a person will call you to talk it through. Please be accurate about your practice income and what you need — it helps us get the right option in front of you first time.