A three to four room physiotherapy clinic fit-out typically runs $80,000 to $250,000 in Australia, depending on whether you are taking a shell or a fitted tenancy. Lenders will usually fund 70 to 100 per cent of equipment, but far less of the soft fit-out. That split is the thing to plan around.
The short version
- Equipment finances easily because it can be repossessed and resold. Partitioning, flooring, plumbing and joinery do not, so they are funded differently and often need more of your own cash.
- A greenfield clinic and a practice buy-in are two completely different lending propositions. A buy-in has revenue history a lender can assess; a greenfield has a forecast.
- Budget for the receivables gap as well as the fit-out. Medicare and private health rebates do not land the day you treat.
- Expect to fund the soft fit-out through a term loan or unsecured facility, and the equipment through asset finance, at a lower cost.
- Practice buy-ins are typically assessed on the goodwill multiple and the retention of the treating clinicians, not on the equipment.
What does a physiotherapy practice fit-out actually cost?
The range is wide because "fit-out" covers two very different things.
| Item | Indicative cost | How lenders treat it |
|---|---|---|
| Treatment plinths and tables (per room) | $1,500 to $4,000 | Asset finance, straightforward |
| Exercise and rehab equipment | $10,000 to $40,000 | Asset finance, straightforward |
| Shockwave therapy unit | $8,000 to $20,000 | Asset finance, straightforward |
| Ultrasound and electrotherapy | $2,000 to $6,000 | Asset finance, straightforward |
| Partitioning, flooring, plumbing, joinery | $50,000 to $150,000 | Term loan or unsecured. Not asset finance. |
| Reception, signage, IT and software setup | $10,000 to $30,000 | Term loan or unsecured |
The distinction in the right-hand column is the one that catches people out. Asset finance is cheap because the lender can take the asset back. A wall you built inside someone else's tenancy has no resale value, so it cannot be financed the same way.
The practical consequence: if your $180,000 fit-out is $60,000 equipment and $120,000 building work, you are not financing $180,000 at equipment rates. You are financing $60,000 cheaply and $120,000 at unsecured business loan pricing, or out of your own capital.
Is it easier to finance a buy-in than a new clinic?
Generally, yes, and by a wide margin.
A practice buy-in comes with financial statements. A lender can see two or three years of revenue, patient volumes, and the fee split with contractors. The risk is legible. Buy-ins of an existing physiotherapy practice are typically priced against the goodwill valuation, and lenders will lend against a going concern more readily than against a business plan.
A greenfield clinic comes with a forecast. There is no revenue history, no patient list, and no proof the location works. Lenders respond by asking for more security, more deposit, or both.
If you are buying in, the questions a lender will focus on are:
- What proportion of revenue is delivered by the departing owner, and are they staying on during a transition?
- Are the other treating physiotherapists employees or contractors, and are they staying?
- What is the referral mix: GP referrals, private, workers compensation, DVA?
Concentration risk is the recurring theme. A practice where 60 per cent of revenue walks out the door with the seller is a different loan to one where it does not.
How does the receivables timing affect a physio practice?
Most new practice owners budget the fit-out and forget the gap.
Private patients paying on the day are cash on the day. But a meaningful share of physiotherapy revenue arrives later:
- Private health fund claims processed on the spot generally settle within a few business days.
- Workers compensation and CTP claims are slower, commonly 30 to 60 days and sometimes longer where approvals are contested.
- DVA and Medicare chronic disease management items sit somewhere in between.
A clinic doing $60,000 a month with a third of that in workers compensation work can easily have $25,000 to $30,000 permanently outstanding. That money is earned, invoiced, and unavailable. If your fit-out loan consumed all your capital, that gap becomes the problem that follows the problem you just solved.
Budget working capital as a line item alongside the fit-out, not as an afterthought.
Worked example: a new three-room clinic
A physiotherapist opens a three-room clinic in an outer suburban strip.
- Equipment: $55,000, funded via asset finance over five years.
- Building works and soft fit-out: $95,000, funded via an unsecured business term loan over four years.
- Working capital buffer: $25,000, held in an offset or a small overdraft rather than drawn.
Total project: $175,000. Own contribution: around $25,000 to $40,000, which is a typical expectation on a greenfield clinic without property security.
The reason to split the funding across two products rather than take one $150,000 loan is cost. Asset finance against identifiable equipment prices materially better than unsecured lending, so putting the equipment portion where it belongs lowers the blended cost of the whole project.
What should a physiotherapist have ready before applying?
- A quantity surveyor or builder's quote separating equipment from building works. Lenders need the split, and providing it yourself speeds everything up.
- Your registration and any practice ownership structure documents.
- For a buy-in, three years of the target practice's financials and a breakdown of revenue by practitioner.
- A realistic patient volume ramp, ideally benchmarked against a comparable clinic rather than best case.
Frequently asked questions
How much deposit do I need to open a physiotherapy practice?
For a greenfield clinic without property security, expect to contribute somewhere in the range of 20 to 30 per cent of the project cost. For a buy-in of an established practice with clean financials, deposits can be lower because the lender is assessing existing revenue rather than a forecast.
Can I finance a physiotherapy practice without property security?
Yes. Equipment can be funded through asset finance secured against the equipment itself, and the fit-out portion through unsecured business lending. Property security typically reduces the cost but is not a requirement for every lender.
Is it better to lease or buy physiotherapy equipment?
It depends on how quickly the equipment dates. Treatment plinths hold up for a decade and are usually worth owning. Technology that moves faster, or that you may want to swap out, can suit a lease. Your accountant is the right person to model the tax treatment for your structure.
How long does finance for a practice buy-in take?
Where the target practice has clean financial statements, a straightforward buy-in can move in two to four weeks. Where financials are incomplete or the valuation is contested, it takes longer.
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