Equipment is the number that decides an optometry practice. An OCT alone runs $60,000 to $120,000, and a full independent consulting and dispensing setup commonly reaches $250,000 to $400,000 before you have bought a single frame. Frame stock is a separate funding problem again.
The short version
- Optometry has the highest equipment intensity of the allied health disciplines, and that changes which finance products matter.
- An OCT is usually the single largest line item and the one most practices finance separately from everything else.
- Frame and lens stock is inventory, not equipment. It cannot be funded with asset finance and needs a working capital facility instead.
- Buying into a franchise and opening independently are different lending propositions: the franchise brings a proven model and a fixed capital requirement, the independent brings freedom and a forecast.
- Equipment that holds resale value finances more cheaply. Practice-specific joinery and dispensing furniture does not.
What does optometry equipment actually cost?
The consulting room and the dispensary have very different cost profiles.
| Equipment | Indicative cost | Notes |
|---|---|---|
| OCT (optical coherence tomography) | $60,000 to $120,000 | The largest single item in most practices |
| Visual field analyser | $15,000 to $35,000 | Refurbished units meaningfully cheaper |
| Retinal or fundus camera | $15,000 to $40,000 | Sometimes integrated with the OCT |
| Autorefractor and keratometer | $8,000 to $20,000 | |
| Slit lamp with imaging | $5,000 to $15,000 | |
| Phoropter and chair-and-stand unit | $15,000 to $40,000 | |
| Edging and glazing lab | $30,000 to $80,000 | Only if you glaze in-practice |
| Dispensing furniture and displays | $20,000 to $60,000 | Fit-out, not equipment, for finance purposes |
A consulting-only practice that outsources glazing can be equipped for around $120,000 to $180,000. Add an in-house edging lab and a full dispensary and the number roughly doubles.
Why does an OCT get financed on its own?
Because of its size relative to everything else, and because the useful life is long but the software cycle is not.
Most practices finance the OCT as a discrete asset over five to seven years rather than folding it into a general practice loan. Two reasons:
- It is genuinely resaleable. There is an active secondary market for imaging equipment from the major manufacturers, which means a lender is comfortable securing against it. That comfort translates into better pricing than unsecured lending.
- The term can match the life. A seven-year term on an asset that will work for twelve is a sensible match. Folding it into a four-year practice loan compresses the repayment into a period much shorter than the value it delivers.
The question worth asking before you sign is what happens at end of term, and whether the manufacturer's software and support arrangements continue independently of the finance.
How do you fund frame and lens stock?
This is the part that surprises new practice owners, and it is worth separating clearly.
Frames are inventory. A modest independent dispensary carries $30,000 to $100,000 of frame stock, and it turns over slowly: many practices hold six to twelve months of stock at any time. Asset finance does not fund inventory, because inventory gets sold and the security disappears.
The options are:
- A business overdraft or line of credit, sized to your stock holding, drawn as you buy and repaid as you sell.
- Trade finance, if you import frames directly rather than buying through a local distributor.
- Supplier terms, which many frame distributors offer and which are often the cheapest capital available to a new practice.
The mistake is funding frame stock out of the same term loan that paid for the fit-out. A term loan amortises on a fixed schedule; your stock holding does not. You end up repaying capital on an asset that has not converted to cash yet.
Franchise or independent: which finances more easily?
Both are financeable. They are assessed differently.
A franchise brings a documented model, a known capital requirement, and in many cases a lender panel already familiar with the brand. Approval tends to be more predictable and the process faster. The constraint is that the capital requirement is set by the franchisor, and the franchise agreement term can cap how long a lender will lend for.
An independent practice has no template. The lender assesses your location, your forecast, and your experience. It takes longer and usually requires more of your own capital. What you get in exchange is that the goodwill you build belongs to you rather than being tied to a brand licence.
If you are looking at a franchise, one thing to check early: whether the franchisor's accredited lending panel is genuinely competitive or simply convenient. Accreditation is an administrative arrangement, not a guarantee of pricing.
Worked example: an independent consulting practice
An optometrist opens an independent practice, outsourcing glazing.
- OCT: $85,000, financed over seven years as a standalone asset.
- Remaining consulting equipment: $70,000, financed over five years.
- Fit-out, joinery and dispensing furniture: $90,000, business term loan over five years.
- Frame stock: $45,000, funded through a combination of supplier terms and a $30,000 overdraft.
- Working capital buffer: $25,000.
Total project: around $315,000, of which $155,000 sits in equipment that finances at the lowest cost, $90,000 in fit-out that does not, and $70,000 in stock and working capital that needs a revolving facility rather than a term product.
Three different funding problems, three different products. Solving all three with one loan is the most common and most expensive mistake in a practice setup.
Frequently asked questions
How much does it cost to open an optometry practice in Australia?
A consulting-focused independent practice that outsources glazing typically costs $250,000 to $350,000 all in, including equipment, fit-out and initial stock. Adding an in-house edging lab pushes that toward $400,000 or more.
Can I finance an OCT separately from the rest of the practice?
Yes, and most practices do. Imaging equipment holds resale value and has an active secondary market, so lenders will finance it as a discrete asset, usually over five to seven years.
Can frame stock be financed?
Not through asset finance, because stock is sold rather than retained. Frame stock is funded through a revolving facility such as an overdraft or line of credit, through trade finance if you import directly, or on supplier terms.
Is refurbished optometry equipment financeable?
Often yes, though lenders apply age limits and may require a shorter term or a larger deposit. Refurbished visual field analysers and slit lamps are commonly financed; very old equipment from unsupported manufacturers is harder.
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