Quick answer
Physiotherapy and allied health clinics borrow for treatment and rehab equipment, fit-outs, second locations, practice software and hiring before new rooms fill. Lenders look at practitioner utilisation, referral sources, the mix of private clients, health funds, compensation schemes and the NDIS, and how quickly funders pay. Steady deposits support unsecured options; larger expansions often use property security.
Key points
- Lenders read clinics through practitioner utilisation and referral sources.
- Funder income is reliable but can be slow — claiming history matters.
- Contractor practitioners can leave; lenders ask about retention.
- A second clinic should be judged on its own ramp-up plan.
- Common uses
- Equipment, fit-outs, second sites
- Lenders focus on
- Utilisation, funders, retention
- Unsecured options
- Typically $5k – $500k
- Property-secured
- $20k – $5m
Physiotherapy, chiropractic, osteopathy, podiatry, occupational therapy, exercise physiology — allied health clinics are built on skilled people, fitted-out rooms and a steady stream of referrals. Lenders like the demand. What they study is how full the diary is, where the patients come from, and who pays the bill.
What do allied health clinics usually borrow for?
- Treatment and rehab equipment. Reformers, treadmills, shockwave and ultrasound machines, gym fit-outs for group rehab.
- Fit-outs. More treatment rooms, a better reception, accessible bathrooms.
- A second site. Expanding into a neighbouring suburb or a sports club.
- Software and systems. Practice management, telehealth and claiming tools.
- Hiring ahead of demand. Wages for a new graduate or senior practitioner while their diary fills.
How do lenders look at a clinic?
Utilisation. How full are practitioners’ diaries? A clinic running at high utilisation has a clear case for more rooms or staff; a clinic with half-empty diaries needs marketing before it needs a fit-out.
Referral sources. GPs, specialists, sporting clubs, insurers and word of mouth. A spread of sources is reassuring.
Who pays. Private patients pay on the day (with health fund rebates), but compensation schemes, the NDIS and some third-party funders pay later. Our guide to government-funded revenue explains how lenders treat those claims.
People. Practitioners must be registered — physiotherapists with the Physiotherapy Board of Australia through Ahpra. Many clinics use contractor practitioners, so lenders ask about retention and whether patients would follow a practitioner who leaves.
Benchmarks. The ATO publishes small business benchmarks for physiotherapy services and for chiropractic and osteopathic services, useful for checking your cost structure against peers.
If your diaries are full and you’re ready to grow, check your clinic’s options — there’s no credit check to enquire.
A closer look: funder claims and debtor days
Many allied health clinics treat a meaningful share of patients through third parties: workers’ compensation and motor accident schemes, the NDIS, the Department of Veterans’ Affairs, and sometimes employers or sporting bodies. The income is reliable in the sense that the funder will pay, but it often arrives weeks after the treatment. Meanwhile, the clinic has paid its practitioners and its rent.
Lenders look at this in two ways. First, how much of your monthly income comes through funders, and how long they typically take to pay. Second, whether claims are being rejected or queried — a sign that admin processes need attention. A clinic that submits clean claims promptly and tracks its debtors turns funder income into a strength. One with a growing pile of unpaid claims looks like it needs working capital just to stand still.
If funders make up a large part of your income, a line of credit is often a better fit than a lump-sum loan, because it can be drawn when claims are slow and repaid when they land.
Documents to have ready
| Document | Why it matters |
|---|---|
| Business bank statements | Receipts from patients and funders |
| Practice management reports | Utilisation, appointments, practitioner split |
| Practitioner registrations | Confirms the clinic can deliver care |
| Funder payment history | How quickly claims turn into cash |
| Lease and fit-out quotes | Site security and purpose |
Red flags for clinic finance
- Slow-paying funder claims building up.
- Practitioners who could walk with a large share of patients.
- A second clinic losing money without a turnaround plan.
- No utilisation data, making the case for expansion hard to judge.
- Equipment finance stacked across several providers.
Questions a lender will ask
- How full are the diaries, practitioner by practitioner?
- Where do new patients come from?
- What share of income comes through funders, and how fast do they pay?
- Are practitioners employees or contractors, and how long have they stayed?
- What will the new equipment or rooms add?
How to strengthen a clinic application
Export a twelve-month utilisation report and a summary of income by payer type. List practitioners with their start dates and arrangements. Put equipment quotes in writing and explain what service they enable — group classes, a new modality, more appointments. If funder claims are slow, show the ageing and what you’re doing about it. A clinic that can show its diary and its debtors on two pages is easy to lend to.
Illustrative scenarios
Illustrative: rehab room. A physiotherapy clinic needs $55k to turn an unused storeroom into a rehab gym for classes. Twelve months of steady deposits from private clients and health funds support an unsecured loan.
Illustrative: second clinic in a sports precinct. A multidisciplinary clinic wants $200k to open a second site near a sports complex. The first clinic is profitable but the new one will take time to fill. A second mortgage over the owner’s investment property funds the fit-out and ramp-up wages.
Secured or unsecured for a clinic?
Unsecured lending of $5k to $500k, sized on turnover and bank statements, covers most equipment and fit-outs. Larger expansions or buy-ins go further with property-secured loans from $20k to $5m. Clinics with a strong fitness side should read the gym guide, and those serving NDIS participants the NDIS provider guide.
Could your clinic qualify?
A quick enquiry is the easiest start. It takes about a minute, there’s no credit check when you first enquire, and your details go to a real person rather than a queue of lenders. Tell us accurately about turnover, the amount and any property, and we’ll come back with options shaped around how your clinic actually earns.
Frequently asked questions
Can a physio clinic borrow for a rehab gym?
Yes. Clinics with steady banked income can often borrow unsecured for equipment and fit-outs. Lenders like investments that add group classes or extra practitioner capacity.
Do lenders count compensation scheme and NDIS income?
They count what reaches your bank account. Funder income is reliable but can be slow, so lenders look at your claiming history and debtor days.
What if my practitioners are contractors?
Lenders will ask how long they've been with you and what happens if one leaves. Contractor models are common; stability is what matters.
Can I borrow to open a second clinic?
Yes. Lenders look at the first clinic's performance and a realistic plan for the second. Property security helps if the new site will take time to become profitable.