Private Lending for Medical Clinics and Healthcare Practices

Medical clinics and healthcare practices operate in a structurally different environment to most small businesses. Revenue is often stable, but ownership structures, compliance obligations, and acquisition costs can complicate traditional bank lending.

Private lending for medical clinics provides asset backed funding solutions where timing, structure, or ownership arrangements do not fit standard bank policy.

This page explains how private lending is used in the healthcare sector in Australia.

Why Medical Clinics Use Private Lending

Unlike many businesses, medical clinics often have:

• strong recurring revenue

• high professional income

• complex ownership structures

However, banks may still decline or delay funding due to:

• trust or company ownership

• multiple practitioners

• practice acquisition timelines

Private lending focuses on asset strength rather than internal bank policy constraints.

Common Medical Lending Scenarios

Private lending is commonly used for:

• purchasing an existing medical practice

• funding practice expansion or relocation

• refinancing short term liabilities

• buying into or restructuring partnerships

For practice purchases, timing certainty is often critical.

Property and Security Considerations

Medical lending commonly involves:

• commercial premises

• mixed use medical buildings

• residential property held by practitioners

Lenders assess:

• property quality

• tenancy strength

• long term marketability

For lending structure comparisons, see first mortgage loans and second mortgage loans.

Exit Strategy in Healthcare Lending

Exit strategies often include:

• refinance to a bank once ownership settles

• long term practice cash flow

• sale of premises

The relative stability of healthcare income often supports these exits.