Quick answer
Physiotherapists usually borrow to fit out or expand a clinic, buy equipment such as Pilates reformers and shockwave units, buy into or purchase a practice, and carry wages while new clinicians build a caseload. Equipment finance suits gear, a term loan or property-secured loan suits fit-outs and acquisitions, and a line of credit covers wage gaps. Banks favour established practices; non-bank lenders move faster on bank statements.
Key points
- Lenders value physio practices on repeat patient flow, room utilisation and how much revenue depends on the principal personally
- Equipment such as reformers, shockwave units and treatment tables is usually cheapest on equipment finance, secured by the gear
- Queensland's payroll tax ruling on medical centres names physiotherapy practices, so contractor arrangements are a question lenders and buyers now ask about
- The $20,000 small business instant asset write-off is permanent from 1 July 2026, which changes the timing maths on smaller equipment purchases
A physiotherapy practice earns money one appointment at a time, and most patients pay or claim through HICAPS before they walk out the door. That makes the day-to-day cash look tidy. The pressure arrives in lumps: a new treatment room, a second site, a reformer studio, or a senior physio keen to buy in. That’s when finance matters, and the right type depends on which lump you’re facing.
How do lenders look at a physiotherapy practice?
Most lenders like health businesses. Demand is steady, income doesn’t swing with fashion, and practitioners are registered professionals. For a physio clinic, though, an assessor usually wants to understand three things beyond the headline turnover.
How busy the rooms are. A clinic with four treatment rooms booked solidly through the week is a different proposition from one with the same turnover but empty afternoons. Lenders may ask for booking reports from your practice management software as well as bank statements.
Who generates the revenue. If the principal personally produces most of the income, the lender is lending against one person’s health and willingness to keep working. Practices with several clinicians, and patients loyal to the clinic rather than to one individual, are easier to lend against and easier to sell.
Where patients come from. A healthy mix of private health insurance, self-paying patients, GP chronic disease referrals, NDIS participants, sporting clubs and compensable work (workers compensation and motor accident schemes) spreads the risk. Compensable payers can be slow, so a practice heavy in that work may show a larger gap between treating and getting paid.
What do physios typically borrow for?
| Purpose | Finance that usually fits | Why it works |
|---|---|---|
| Treatment tables, rehab gym, ultrasound, shockwave unit | Equipment finance or a chattel mortgage | The equipment secures the loan, which keeps the cost down |
| Clinical Pilates reformers and studio equipment | Equipment finance | Each reformer can be listed as a separate asset; replace or add over time |
| Fit-out of new rooms or a second site | Business term loan or property-secured finance | Building works have little resale value, so lenders want other security or strong figures |
| Buying a practice or a partner’s share | Business acquisition loan | Assessed on the practice’s profits and the stability of its patient base |
| Wages while a new clinician builds a list | Business line of credit | Draw for a few months, repay as their diary fills |
As a rough guide from Australian suppliers and clinic fit-out guides, shockwave machines tend to sit somewhere around $10k to $30k, clinical reformers around $5k to $8k each, and a full fit-out of a new physio clinic often lands well into six figures. Get real quotes before you apply: lenders size the loan on the tax invoice, not on an estimate. Our equipment finance calculator shows what a given purchase is likely to cost in dollars over the term.
Does the instant asset write-off change how I should buy equipment?
It changes the timing, not the need for finance. The ATO says the $20,000 threshold for small businesses has been made permanent, starting 1 July 2026. Qualifying assets priced under that figure can generally be written off in a single year, the year the clinic starts using them, instead of being depreciated bit by bit.
For a physio practice, that covers a lot of the gear list: individual reformers, treatment tables, a radial shockwave unit at the lower end of the price range, gym equipment and computers. Financing the purchase doesn’t stop you claiming the deduction, because the write-off follows ownership and use, not how you paid. With a chattel mortgage, the clinic holds title from day one. A lease leaves ownership with the financier, and the tax picture shifts accordingly. Your accountant should confirm which structure suits your situation before you sign.
If a bank is slow and a supplier needs a deposit this month, send us a quick enquiry. Asking doesn’t touch your credit file.
Why are lenders asking about contractor physios and payroll tax?
Many physio clinics engage practitioners as contractors under service agreements, with the practice collecting fees and paying the practitioner a percentage. State revenue offices have taken a firm line on these arrangements since the Thomas and Naaz decision involving a medical centre.
Queensland’s public ruling on medical centres, PTAQ000.6, specifically includes physiotherapy practices in its scope. It also says the general practitioner payroll tax exemption Queensland introduced doesn’t extend to other practice types, such as a physiotherapy practice, or to payments to other health practitioners. Other states have issued their own rulings, and their GP concessions generally don’t cover physios either.
Why does a lender care? Because an unrecognised payroll tax liability can turn a profitable practice into a business with a large debt to the state revenue office. Lenders funding a practice purchase, and their valuers, are increasingly asking how practitioners are engaged and whether payroll tax has been assessed. If you’re buying, make it part of your due diligence. If you’re the owner, getting advice and a clear answer before applying makes the process smoother and protects the value of the practice.
What risks and seasonal patterns matter in physio?
Physiotherapy is fairly steady, but it isn’t flat.
- Sport seasons. Clinics linked to local football, netball or running clubs see injury peaks in winter sport and pre-season periods, and quieter spells in between.
- Health fund resets. Many patients use up extras limits late in the calendar year, then hold back in January once limits reset.
- School holidays and Christmas. Appointment numbers usually dip, while rent and wages don’t.
- Funder rules. The NDIS physiotherapy price limit is $183.99 an hour for 2026–27, held at the same level as the previous year while wages keep rising. Practices with heavy NDIS caseloads feel that squeeze.
- Key-person risk. Losing one senior practitioner can take a big slice of revenue with them, particularly if patients follow.
Lenders aren’t put off by any of this, but a plan showing how you handle the quieter months reassures them.
Documents that make a physio loan straightforward
- AHPRA registration details for the principals
- Business bank statements: three to six months for smaller requests, twelve for larger ones
- Practice management reports showing appointment volumes and room utilisation
- Recent financial statements and tax returns, plus the latest BAS lodgements
- Equipment quotes or tax invoices
- The lease for your premises, including the remaining term and any options
- For a purchase or buy-in: the sale contract, the vendor’s financials and copies of practitioner agreements
Example: a two-room clinic adding a second site
Illustrative only; not a real practice. A physio owns a busy two-room clinic in a growing outer suburb, with one employed physio and a part-time receptionist. Rooms are booked out most weekdays and the waiting list is a fortnight long. A nearby medical centre offers three rooms on a new lease.
The plan needs about $140k for the fit-out, around $45k of equipment including four reformers and a shockwave unit, and roughly three months of wages for two new graduates while they build a caseload. The owner’s bank likes the practice but wants another year of figures for the second site.
So the funding is split. The equipment goes on equipment finance, secured by the gear, with each item under the write-off threshold. The fit-out is funded by a term loan secured against equity in the owner’s home. A modest line of credit sits behind wages for the first few months. Once the second clinic has a year of trading, the owner goes back to the bank to refinance on cheaper terms.
Ready to talk through your practice?
Physios are good at building a treatment plan around one patient’s goals. Funding works the same way: the right structure hinges on what you’re doing: more rooms, a purchase, or extra clinicians, and we’re happy to work through that with you.
Our form is short; most physios finish it between patients. Filling it in leaves your credit file untouched, because nothing is checked at that stage. We don’t pass your name around a crowd of finance companies, so expect one call, not twenty. Someone on our team reads your notes properly and rings you back. The more precise you are about turnover, purpose and timing, the more likely our first suggestion is the right one.
Frequently asked questions
Can a newly graduated physio get a loan to open a clinic?
It's possible but harder. Lenders like to see a track record, so a new practitioner often starts with equipment finance for treatment tables and gear, plus some savings or property equity for the fit-out. A business plan showing referral sources and room bookings helps a lot.
How do I finance a Pilates reformer studio inside my practice?
Reformers and studio equipment usually suit equipment finance or a chattel mortgage, with the equipment as security. The building works for the studio space are usually funded separately, through a term loan, savings or property-secured lending.
Will lenders count NDIS and workers compensation income?
Yes, provided it shows up consistently in your bank statements. Lenders may look at how long those payers take to settle and how much of the business depends on any single funder or referrer.
Can I borrow to buy into an existing physiotherapy partnership?
Yes. Buy-ins are usually funded by a business acquisition loan, often secured against property, sometimes alongside vendor finance. Lenders will look at the practice's profit history and whether patients are likely to stay once ownership changes.
Does my bank look at physio practices favourably?
Generally yes. Several banks have health professional teams that understand practice finance, and they are often the cheapest option for an established clinic with good records. If the timing or criteria don't fit, non-bank lenders can assess the practice mainly on bank statements.