How your equipment finance is structured affects your cash flow, your tax position, and what you can borrow later. Most medical professionals don't find this out until after they've committed. We work through the options with you before you sign anything.
With equipment, the rate is the least interesting part. How the finance is structured — lease, chattel mortgage or rental — affects your cash flow, your tax position, and how much you can borrow next for rooms, a practice buy-in or a home. Vendor finance and paying cash both feel easy, but either can cost you more than the structure you'd have chosen with advice. Check it before you sign, and confirm the tax treatment with your accountant. This is general information; your own position depends on your circumstances and the lender's assessment.
Vendor finance is convenient. Paying cash feels simple. But both can cost you more than you realise — not just now, but when you want to borrow for rooms, a practice buy-in, or a home loan in the next few years. The structure of your equipment finance affects your borrowing capacity, your cash flow, and your tax position. We look at all three before recommending anything.
The right structure spreads costs appropriately without tying up working capital or creating repayment pressure at the wrong time in your practice cycle.
Different finance structures have different tax treatment. Getting advice before you sign means you're not leaving money on the table or creating an unnecessary tax problem.
What you finance today shows up in your liability position tomorrow. Structure it correctly and your capacity to borrow for rooms or a practice buy-in stays intact.
Vendor finance from equipment suppliers is common in medical. It's convenient — but it's designed for the supplier, not for you. Before you accept it, let us check whether there's a better structure available. In most cases there is.
We'll look at the rate, the term, the structure, and how it fits with what you're planning to do in the next 12–24 months.
Get a Second Opinion on Your OfferMedical Finance Australia is the specialist medical lending division of Model Mortgages, led by Phil Riches and Virginia Graham Riches. Phil spent his early career at Westpac before joining the business in 2010. Virginia founded Model Mortgages in 2004. Together they lead a handpicked team of specialist brokers with over 20 years of experience across medical, commercial and residential lending.
Most of our medical clients come through referrals. If someone pointed you here, you're in the right place.
Start an Equipment Finance CheckIt's convenient, but it's designed for the supplier, not for you. Before you accept it, it's worth checking whether a different structure suits your cash flow and tax position better. In many cases there's a stronger option.
Sometimes, but not automatically. Paying cash can tie up working capital and, depending on your situation, may be less tax-effective than financing. It's worth weighing the options — and confirming the tax treatment with your accountant — before deciding.
What you finance today shows up in your liability position tomorrow. Structured poorly, it can quietly reduce how much you can borrow for rooms, a practice buy-in or a home loan. Structured well, your capacity stays intact.
Common structures include chattel mortgage, lease and rental arrangements, each with different cash flow and tax treatment. The right one depends on your circumstances and how you're set up — your accountant should confirm the tax side.
Clinical and diagnostic equipment, dental chairs and units, imaging, theatre and surgical equipment, practice fit-out and refurbishment, IT and practice software, and professional vehicles.