The Healthcare and Medical sector has long been a preferred segment for banking and finance. Credit providers increasingly focus on understanding what drives behaviour and credit risk in specific industries, and set lending policies accordingly. Therefore lending to the healthcare practitioners and staff has expanded in recent years.
There is a range of medical finance options for borrowing that fit a number of purposes. This can include establishing new practices, working capital lending, equipment finance and property.
Competition between financiers is strong, and several lenders have developed expertise that has developed into specialised health teams.
In turn, this has built greater performance insights and benchmarks in the industry, allowing financiers to take a stronger lending position compared with standard credit policy that applies in other lending scenarios.
Some of the funding opportunities available include:
Lending of up to 95% of Market Value (LVR) of Practice Premises (excluding Greenfield sites)
Lending of up to 75% LVR for Practice Goodwill being purchased/established
Pre-approval for Equipment Finance facilities - up to circa $350,000
Lending for working capital purposes on an unsecured basis
Lending of up to 100% LVR to purchase Owner Occupied Residential Property
Lending of up to 95% LVR to purchase Investment Residential Property
Interest rates and terms are varied, based on the mix of facilities taken above.
The range of healthcare sectors eligible for medical lending has expanded in recent years. There are lenders who offer finance to these positions:
Medical Doctors (General & Specialist)
Dentists
Veterinarians
General Practitioners
Physiotherapists
Junior Medical Officers & Interns
Some specialist lenders also offer lending to qualifying Healthcare Administration and Operations staff.
Borrowers must generally have three years of professional experience
A Practice must meet performance standards such as Interest & Debt Service Cover
Practitioners must be registered with relevant professional regulators
For more information, or to talk about a scenario, please contact us.