Medical practice finance for GP clinics and medical centres

A general practice is a strange business to lend to if you only read the profit and loss statement. Revenue arrives through Medicare, private billing and incentive programs, much of it earned by contractor doctors who keep a share. Costs are front-loaded: reception staff, nurses, rent, software and clinical consumables all have to be paid before the quarterly incentive lands. Lenders who understand general practice look past the headline numbers to the rhythm underneath. This page explains how that works and where finance fits.

What can medical practice finance be used for?

Most GP clinic borrowing falls into a handful of purposes. Each one is assessed a little differently.

Purpose	What it usually covers	How it’s often structured
Fit-out	Consulting rooms, treatment room, sterilisation, reception, joinery, data cabling	Property-secured loan or a mix of secured and equipment finance
Equipment	ECG machines, spirometers, treatment beds, autoclaves, IT and phones	Unsecured facility, equipment finance or part of a larger secured loan
Buying a practice	Goodwill, equipment, patient records transfer, stamp duty where it applies	Property-secured loan, sometimes with vendor terms
Premises	Buying the suite or building you practise from	Commercial property loan
Working capital	Wages, rent and payroll tax while incentives and billings catch up	Line of credit or short-term facility

If you’re planning a new room or a whole new site, the fit-out and equipment calculator adds up the build, the equipment and the cash buffer you’ll need before patients start booking.

How do lenders assess a GP clinic?

A lender who knows primary care asks different questions from a generalist. Expect a conversation about:

• Billings history. Twelve to twenty-four months of practice income, split between Medicare, private fees and incentives, tells a story that one year’s tax return can’t.
• Doctor retention. How many GPs you have, how long they’ve stayed and whether revenue relies on one or two high billers.
• Service agreements. Well-documented contractor or employment arrangements reduce uncertainty.
• Lease security. A long lease with options gives a fit-out lender comfort that the practice will be there to use what it’s borrowing for.
• Tax position. Payroll tax, BAS and PAYG withholding obligations, and whether anything is overdue.

None of these is a pass-or-fail test. They shape how much can be lent, whether property security is needed and how the facility is structured.

Secured or unsecured: which suits a medical practice?

Property-secured business loans run from $20,000 to $5,000,000 and can sit as a first mortgage, second mortgage or caveat over residential or commercial property. They suit bigger projects: a full fit-out, a practice acquisition or buying your own premises. Because the property carries much of the risk, they’re also the usual route when the practice itself is new or its numbers are uneven.

Unsecured and line-of-credit options, typically $5,000 to $500,000, are calculated from turnover and banking history. They suit a trading clinic that needs equipment, a smaller refurbishment or a buffer for quarterly incentive timing.

Plenty of practices use both: property security for the fit-out and a small unsecured line for the months when payments bunch up. If you’re unsure which applies, a short enquiry is the quickest way to find out, and it won’t touch your credit file.

How does bulk billing affect practice cash flow?

From 1 November 2025, practices that register for the Bulk Billing Practice Incentive Program and bulk bill every eligible service for every Medicare-eligible patient receive an additional 12.5% incentive on MBS benefits from eligible services. The Department of Health, Disability and Ageing says the payment is quarterly and split evenly between the GP and the practice.

For many clinics that’s a welcome lift in revenue. It also changes timing. Private gap fees that used to arrive on the day are replaced by a larger payment that lands once a quarter. Wages, rent and payroll tax don’t wait for the quarter to end. Our page on bulk billing and cash flow walks through ways to plan around the lag.

An illustrative example

Illustrative only; not a real client. A two-doctor clinic in a growing outer suburb wants to add three consulting rooms and a treatment room in the vacant tenancy next door. The fit-out quote, equipment list and fees come to a figure beyond what the practice could fund from cash without draining its buffer.

The owners have equity in their home. A lender might structure a property-secured loan for the fit-out and equipment, then add a modest unsecured line to cover wages for new staff during the first months, while the new doctors build their books. The clinic keeps its cash reserve intact and repays as billings grow.

What documents will you need?

Having these ready shortens the process:

1. Recent business bank statements (usually six to twelve months)
2. Latest BAS and financial statements, or management accounts if the year isn’t finished
3. Practice billing reports by provider and by payment source
4. Your lease, or the agreement for lease on new premises
5. Builder’s quote or equipment invoices for what you’re funding
6. ID for directors, plus details of any property offered as security

Contractor agreements and a simple twelve-month cash flow forecast help too, especially for a new site. If payroll tax on contractor GPs is a worry, read our payroll tax guide for medical centres before you apply.

Ready to see what your clinic could qualify for?

You spend your days triaging other people’s problems. Working out finance for the practice shouldn’t feel like another shift. The enquiry takes about 60 seconds and involves no credit check. Your details go to one team, not a queue of lenders who’ll ring you through the lunch rush. Someone who understands GP billing will look at your numbers and call to talk it through.

The more accurate your answers on the form (amount, purpose, state and whether there’s property available as security), the more precisely we can match you on that first call.

Check what your practice could qualify for →