- Dentists
- Updated
- • 5 min read
Dental Practice Finance Explained
Dental practice finance covers a wide range of needs — from purchasing or establishing a practice to equipment, fit-out and working capital. Each type has different lender requirements, structures and documentation needs.
Quick Answer
Dental practice finance may include practice purchase, equipment finance, fit-out lending and working capital. Assessment depends on practice income, existing debts, business structure and overall financial position.
Types Of Dental Practice Finance
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Practice purchase — buying an existing dental practice, including goodwill
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Equipment finance — dental chairs, X-ray machines, imaging equipment
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Fit-out and refurbishment — new or upgraded premises
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Working capital — managing cash flow between billing and payment
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Commercial property — buying premises rather than leasing
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Frequently Asked Questions
Can I finance goodwill when buying a dental practice?
Some lenders will finance a portion of goodwill as part of a practice purchase. Policy varies.
Is dental equipment finance separate from a home loan?
Yes. Equipment finance is a separate product, but existing business debt is counted in personal serviceability.
Personal vs Business Income For Practice Owners
Dental practice finance covers several distinct needs. Each type has different lender requirements, interest rate structures, repayment terms and documentation requirements.
Practice Purchase Finance
Purchasing an existing dental practice typically involves finance for goodwill, fit-out, equipment and working capital. Lenders assess practice profitability, existing client base, lease terms and the purchaser’s dental experience.
Equipment Finance
Dental chairs, X-ray machines, CBCT scanners, CAD/CAM systems and other equipment can be financed through a chattel mortgage, finance lease or hire purchase. Equipment finance is separate from the practice purchase but affects personal serviceability.
Fit-Out Finance
New practice fit-outs or refurbishments can cost $200,000–$600,000+ depending on the size and standard. Fit-out finance is typically assessed against business income, the lease term and the expected return on investment.
What Lenders May Look At
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Practice profitability and revenue history
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Existing client base and retention
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Lease terms and options to renew
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Goodwill valuation
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Common Mistakes In Practice Finance
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Not separating practice finance from personal home loan applications
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Using the same lender for all business and personal borrowing without comparing
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Not having a clear picture of goodwill value before applying
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Underestimating fit-out costs
Can goodwill be financed?
Some lenders will finance a proportion of goodwill as part of a practice purchase. Policy varies.
Is equipment finance separate from a business loan?
Yes. Equipment finance is a distinct product but counts toward total business liabilities.
Review Dental Practice Finance Options
We assess practice finance needs across a range of lenders.
General information only. Lending eligibility, LMI waiver policies, rates and approval outcomes vary by lender and are subject to assessment.
Review Dental Practice Finance Options
We assess practice finance needs across a range of lenders.
General information only. Lending outcomes vary by lender and individual circumstances.