Overview
Medical equipment finance requirements in Australia generally fall into four areas: the business (who is borrowing), the asset (what you are buying), the structure (how the facility is set up), and the paperwork (what proves the story). Getting these aligned improves approval odds, pricing and speed.
Facilities commonly used for medical assets include chattel mortgage, hire purchase, finance lease and operating lease. The right option depends on cash flow, tax position and whether you want ownership at the end of term.
Eligibility at a glance
While each lender has its own credit policy, most will look for the following when assessing medical equipment finance:
- Active ABN (and GST registration if turnover is typically above $75k)
- Time trading: 6–24+ months is common; startup options may be available for new practices and newly self‑employed clinicians
- Clean credit history (paid defaults may be considered with explanation)
- Demonstrable serviceability (cash flow to meet proposed repayments)
- Up‑to‑date ATO lodgements; manageable or formalised tax debts
- Appropriate insurance for the asset and business
- Directors’ guarantees (standard for companies and trusts)
How it works
In medical equipment finance, requirements map to risk. Stronger files (established practices, solid cash flow, clean credit, reputable suppliers) generally get broader product choice, higher loan‑to‑value ratios (LVRs) and quicker approvals. Early‑stage or complex files may need tighter structures (e.g. deposit, shorter terms or added security).
The asset type can influence policy. For example, imaging equipment (X‑ray, CT, MRI), ultrasounds and sterilisation units are usually favoured if compliant and supported by reputable installers. Consumables, IT components and software can often be bundled if itemised on supplier invoices.
Documents you may be asked for
Exact medical equipment finance requirements vary by lender and loan size. Typical requests include:
Standard/full‑doc
- Driver licence(s) and entity details (ABN/ACN, trust deed if applicable)
- Latest two years financial statements (P&L and balance sheet) and recent interim figures
- Recent BAS or ATO portal summary
- 3–6 months business bank statements
- Asset quote(s) from an Australian supplier with serial/model details, installation and training line items if applicable
- Insurance certificate of currency (not always required at application but needed before settlement)
Low‑doc/alt‑doc (policy dependent)
- ABN/GST registration details and time trading confirmation
- Accountant’s letter or BAS summaries as income proxy
- Bank statements (typically 6–12 months)
- Signed self‑declaration of income (some lenders)
Asset and supplier requirements
- New vs used: New equipment is widely accepted. Used assets are often financeable subject to age, hours/usage, condition and resale profile.
- Compliance: Devices must meet Australian regulatory standards. Where relevant, ensure TGA inclusion and proper installation/commissioning is planned.
- Supplier: Reputable Australian suppliers/installer quotes help. Private sales can be accepted but usually need extra verification and may reduce LVR.
- Bundling: Delivery, installation, training, IT integration (e.g. PACS, DICOM, practice software), and warranties can often be included if itemised.
- Insurance: Equipment insurance is typically required prior to settlement, naming the financier as an interested party where applicable.
Structure settings that affect approval
- Deposit/LVR: Up to 100% finance may be possible for strong files; deposits of 10–30% can help in early‑stage or higher‑risk scenarios.
- Term: 24–84 months is common. Match term to economic life and maintenance plan.
- Residual/balloon: ATO‑compliant residuals for leases and optional balloons on chattel mortgage/hire purchase can reduce repayments, but must be realistic.
- Ownership outcome: Choose product based on whether you want title during term (chattel mortgage/hire purchase) or prefer leasing (finance/operating lease).
- Security: The asset is primary security. Directors’ guarantees are standard; property ownership can strengthen the file but is not always required.
Key considerations
- Serviceability first: Lenders typically assess cash‑flow coverage of repayments. Seasonal or Medicare/private billing cycles should be explained.
- Pipeline evidence: Letters of engagement, referral patterns or booked procedures can help for new equipment lines.
- ATO position: Up‑to‑date lodgements are important. Active payment plans can be considered with consistent conduct.
- Future upgrades: Build flexibility into term or residual if rapid tech refreshes are expected.
- Total cost of ownership: Consider maintenance/service contracts, consumables and software subscriptions alongside repayments.
Approval and documentation
Clean, consistent documents reduce friction. Mismatched names across quotes, insurance and entity details, or out‑of‑date financials, can slow assessment. If time is critical (for example, installation booked with a theatre fit‑out), flag this and provide complete documents upfront.
For same‑week turnarounds, low‑doc pathways may be available for eligible borrowers and assets. Larger, complex equipment (e.g. imaging suites) often need full‑doc review and site/installation confirmations.
New practices, contractors and startups
Clinicians moving into private practice or starting a new clinic can still access medical equipment finance in Australia. Expect closer scrutiny of:
- Qualifications and experience, letters of appointment or room contracts
- Business plan and projected cash flow (conservative assumptions help)
- Evidence of referrals or agreements with hospitals/insurers
- Personal asset position and savings (a modest deposit can help)
Fast‑track tips
- Request a combined supplier quote that itemises hardware, software licences, delivery, installation and training.
- Provide recent bank statements and BAS together to show up‑to‑date trading.
- Confirm TGA status or compliance notes for clinical devices, if relevant.
- Line up insurance early; some funders require certificate before settlement.
- Be clear on preferred structure (loan vs lease), term and any residual/balloon.
Get help with medical equipment finance requirements
Have a quote ready, or still exploring options? Our team can map your eligibility, documents and structure, then recommend next steps.
Frequently asked questions
What are the medical equipment finance requirements in Australia?
Common requirements include an active ABN, time trading (or strong professional background for startups), serviceable cash flow, up‑to‑date ATO lodgements, a compliant asset from a reputable supplier, and standard identification and financial documents. Directors’ guarantees are typical for companies and trusts.
Do I always need a deposit for medical equipment finance?
Not always. Strong, established practices can often finance up to 100% including installation and training. Startups, private sales or older used assets may benefit from (or require) a 10–30% deposit.
Can used medical equipment be financed?
Often yes. Lenders assess age, condition, service history, and resale profile. Certified reconditioned units from known suppliers are usually more acceptable than ad‑hoc private sales.
Which product should I use: loan or lease?
Chattel mortgage and hire purchase suit ownership outcomes and potential tax benefits like instant asset write‑off (policy dependent). Finance/operating leases can suit off‑balance sheet or high‑refresh strategies. The best fit depends on your objectives and tax advice.
How fast can medical equipment finance be approved?
Simple, low‑doc applications for smaller amounts can be approved in days. Larger, complex assets (e.g. imaging suites) may need full‑doc review and installation confirmations, taking longer. Complete documents are the fastest path.
Will a tax debt or past credit issue stop approval?
Not necessarily. Disclosed, manageable ATO payment plans and explained credit events may still be considered. Expect tighter structures (e.g. deposit, shorter term) and provide strong supporting evidence.
Final takeaway
Medical equipment finance requirements in Australia centre on a clear story: a compliant asset, a credible borrower and a structure your cash flow can comfortably support. Preparing accurate documents and matching the product to your goals will improve approval odds and long‑term value.
If you want a quick sense check on eligibility and documents for your scenario, reach out and we will guide you through the next steps.