Quick answer
Dentists usually borrow to buy or start a practice, fit out surgeries, and finance chairs, imaging, intraoral scanners and sterilisation equipment. Banks with health teams lend readily to established dentists and are often the cheapest option. Equipment finance suits most clinical gear, while acquisitions use business or property-secured loans. Lenders focus on active patient numbers, the hygiene recall book, the lease and how revenue splits between health funds and out-of-pocket fees.
Key points
- Most dental revenue is paid by patients and health funds at the chair, so cash arrives fast, but it's more sensitive to household budgets than Medicare-funded medicine
- Equipment is the dominant cost: surgeries, imaging and digital workflow gear often suit equipment finance better than a general business loan
- Buying an existing practice is valued on its active patient base and recall system; lenders look past the headline goodwill figure
- Victoria's payroll tax exemption for bulk-billed GP services does not cover dentists, so contractor dentist arrangements still need careful review
A single fully equipped dental surgery can cost as much as a new four-wheel drive, and that’s before the imaging room, the sterilisation bay and the plumbing to make it all work. Multiply by three or four surgeries and you see why dentistry is one of the most equipment-heavy small businesses in Australia. It’s also why dental finance tends to be built around the gear rather than around a generic business loan.
Should you start a practice from scratch or buy one?
For most dentists, this choice outweighs every other money decision in their career, and lenders treat the two routes very differently.
| Starting from scratch | Buying an established practice | |
|---|---|---|
| Upfront cost | Fit-out and new equipment | Purchase price, often with older equipment included |
| Income from day one | Low; patient base built over time | Existing patients and recall book |
| What lenders weigh | Your experience, business plan, location, security | Practice profit, patient numbers, equipment age, lease |
| Main risk | Slow patient growth | Paying too much for goodwill, losing patients after the sale |
| Typical finance | Equipment finance plus a term loan or property-secured loan | Business acquisition loan, often with property security, plus equipment finance for upgrades |
Banks with health or professional teams generally favour buying, because the income is proven. For an experienced dentist purchasing a profitable practice, a bank is often the cheapest and most flexible lender, and it’s worth hearing their offer. Starting from scratch is very achievable too, though lenders want to see a strong plan and usually some security.
Which finance suits dental equipment?
Most dental gear is well suited to equipment finance, because it has a recognised supplier network and resale market:
- Dental chairs and delivery units. The core of every surgery.
- Imaging. Intraoral X-ray units, OPGs and CBCT scanners.
- Digital workflow. Intraoral scanners, chairside milling units and 3D printers.
- Sterilisation. Autoclaves, washer-disinfectors and the sterilisation bay fit-out.
- Plant equipment. Compressors, suction units and water treatment.
Technology in dentistry moves quickly. Today’s intraoral scanner can look dated within a handful of years. That’s why some dentists choose a lease for fast-changing tech and a chattel mortgage for equipment they’ll keep for a decade. Our comparison of leasing versus buying equipment sets out the trade-offs, and the equipment finance calculator shows indicative repayments in dollars.
Building works (plumbing to each chair, radiation shielding for imaging, cabinetry, lighting) are harder to secure. They’re usually funded with a term loan, property-secured lending or the practice’s cash flow.
Need a chair, scanner or full fit-out funded? Send us the details for a call back from a specialist; your credit report isn’t looked at when you enquire.
How does dental revenue look to a lender?
Unlike general practice, where Medicare funds most consultations, dental revenue comes mainly from patients and their private health insurers, typically collected at the chair through claiming terminals. That means cash arrives quickly, with few unpaid invoices, which lenders appreciate.
The trade-off is sensitivity to household budgets. When cost-of-living pressure rises, patients delay crowns, implants, orthodontics and cosmetic work, while emergency and preventive care holds up better. Lenders look at the mix:
- Hygiene and recall income. Regular check-ups and cleans are the backbone of a stable practice. A strong recall system is one of the first things a buyer’s lender examines.
- Major and cosmetic work. Higher margins, more discretionary.
- Government-funded care. The Child Dental Benefits Schedule provides a capped amount for eligible children over two calendar years. According to the ADA, the cap is $1,158 for children whose treatment period begins in 2026. State public dental voucher schemes can add further volume in some areas.
A practice drawing on several streams usually reads as steadier than one relying heavily on cosmetic or implant work.
Payroll tax and contractor dentists
Many practices engage associate dentists as contractors, with the practice collecting fees and paying the dentist a percentage. State revenue offices have examined similar arrangements in medical practices closely, and the same contractor provisions can apply to dentistry.
Relief measures introduced for general practice don’t automatically extend to dental. Victoria’s State Revenue Office, for example, says its exemption for fully-funded GP services from 1 July 2025 doesn’t apply to dentists or allied health businesses. If you engage associates on contract, have your accountant review the arrangement before you borrow. A lender can work with an imperfect arrangement; what it can’t work with is a liability nobody mentioned. Our page on ATO and tax debt business loans explains how lenders handle tax arrears generally.
Buying a practice: what to check before you borrow
Goodwill is often the largest component of a dental practice’s price, and goodwill is hard for lenders to secure. Before committing, look beyond the profit figure:
- Active patients. How many patients have attended in the past 18 to 24 months, and how many are booked for recall.
- Who generates the revenue. If the retiring principal personally produces most of the income, some patients may leave with them.
- Associate and staff stability. Will the associates, hygienists and front desk team stay?
- Equipment age. Ageing chairs and imaging mean a capital bill soon after settlement.
- The lease. How long it has to run, any options, and the landlord’s consent to a transfer.
For more on financing an acquisition, see buying a business.
Documents lenders will ask for
- Two to three years of practice financial statements and tax returns
- Twelve months of business bank statements
- Production reports by practitioner and item type from your practice software
- Active patient and recall numbers
- Equipment list with ages, or quotes for new equipment
- Premises lease, including options
- Your AHPRA registration and, for purchases, the contract of sale and any practice valuation
Example: an associate buying the practice they work in
A hypothetical case, for illustration only. An associate dentist in Perth has worked for six years in a three-chair practice owned by a principal planning to retire. The agreed price is $780k, including equipment that is mostly over ten years old. The practice has a solid hygiene program and steady health fund income.
The associate’s bank offers to fund most of the purchase secured over their home, with the remainder from savings. What the bank won’t do quickly is fund the CBCT and two new chairs the associate wants to install straight after settlement. They finance the new equipment separately on equipment finance through a specialist lender, approved in days, with the equipment as security. The purchase settles on time, and the upgrades go in over a long weekend so patients barely notice.
Ready to plan your practice finance?
Whether you’re fitting out a first surgery, buying the practice down the hall or replacing an imaging unit that’s reached the end of its life, the right structure keeps cash flow comfortable while the practice grows.
It’s about a minute to enquire, and the enquiry leaves no trace on your credit file. We don’t send your details out to every lender in town, so there’s no flood of calls. One of our team reads your enquiry and phones you to understand your practice properly. If you give us accurate figures on production, patients and the purchase or equipment involved, we can line up the most suitable option first time round.
Frequently asked questions
Can a new graduate dentist get finance to start a practice?
It's possible but harder than buying an established practice. Lenders like to see a few years of clinical experience, a solid business plan and a deposit or property security. Equipment finance for chairs and imaging is usually the most accessible starting point.
How do I finance a CBCT or intraoral scanner?
Most dentists use equipment finance or a lease, secured by the machine. Lenders are comfortable with recognised brands from established suppliers. A lease can make sense if you expect to upgrade as the technology moves on.
How much can I borrow to buy a dental practice?
It depends on the practice's profit, the patient base, your own experience and the security available. Lenders discount goodwill, so buyers often contribute a deposit or offer home equity. A practice with strong recall systems and steady hygiene income usually supports a larger loan.
Do lenders care about the Child Dental Benefits Schedule?
CDBS income is a modest but reliable stream for practices that treat eligible children. Lenders mostly look at total revenue and its stability, though a broad mix of income sources, including CDBS, health fund and private fees, reads well.
What if my bank won't fund my fit-out in time?
Non-bank lenders can often finance chairs, sterilisation and imaging equipment quickly through equipment finance, and fund building works through a term loan or property-secured loan. You can return to the bank to refinance once the practice is trading.