Quick answer
Veterinary practice finance is business lending for vets who want to buy a clinic, buy into a partnership, open a new practice, upgrade diagnostic equipment or refinance debt. Lenders look at the practice's earnings, goodwill and the vet's experience. Ownright Custom Finance arranges veterinary practice finance Australia-wide, from small-animal clinics to rural mixed practices.
Key points
- Covers clinic purchase, partner buy-in, start-up, fitout and equipment
- Lenders consider goodwill, client base and the vet's registration and experience
- Diagnostic equipment can be financed against the assets
- Rural and mixed practices have their own considerations
- Suits
- Small-animal, equine, mixed and large-animal vets
- Security
- Practice assets, equipment, property and sometimes personal security
- Common uses
- Clinic purchase, buy-in, fitout, equipment, refinance
- Australia-wide
- Yes
What is veterinary practice finance?
Veterinary practice finance is lending shaped around the way vet clinics are bought, built and run. That can mean borrowing to purchase an existing clinic, to buy a share of a partnership, to open a new practice, to fit out consult rooms and theatres, to buy diagnostic equipment or to refinance debt on the way to growing.
Vet practices are attractive to many lenders. Clients tend to return, demand for animal care is steady and the practice usually owns valuable equipment. They are also complicated. Much of the purchase price is often goodwill, income depends on the vets working there, and practices range from small suburban clinics to large rural operations with vehicles, farm calls and after-hours rosters.
Who uses vet practice finance?
- Vets buying their first clinic or buying out a retiring principal
- Associates moving into partnership
- Owners expanding to a second site or adding specialist services
- Rural and mixed-animal vets upgrading vehicles and equipment
- Equine vets building or buying facilities
- Practices refinancing or consolidating existing debt
Owners of other kinds of professional practice may prefer to read medical and dental practice finance and professional services practice finance.
How do lenders assess a vet practice?
Earnings and trend. Tax returns, BAS and practice financials show turnover, margins and consistency. A practice with growing or stable client numbers and a mix of income streams, such as consults, procedures, retail and dispensing, tends to look more resilient.
Goodwill and the price. Lenders compare the price to earnings and the value of physical assets. Where goodwill makes up a big share, they may want a larger deposit or extra security.
The vet. Registration, experience, references and track record. A buyer who has worked in the practice and knows the clients is often easier to finance.
Premises. Whether the clinic owns or leases its building matters. Owned premises add security, while a lease requires a lender to be comfortable with the terms. For property-backed lending, see owner-occupier commercial loans.
Equipment and fitout. Diagnostic gear and fitout can be financed on their own. See business fitout finance and medical equipment finance.
Personal position. Credit history, other debts and assets, since personal security or guarantees are often part of the picture.
What can the finance cover?
| Purpose | Typical approach | Notes |
|---|---|---|
| Buying a clinic | Business loan with practice and sometimes property security | Goodwill is a key point |
| Partner buy-in | Loan funding your share | Partnership agreement matters |
| New practice | Start-up funding with fitout and working capital | Lenders want a clear plan |
| Equipment | Chattel mortgage or lease | See chattel mortgage loans |
| Vehicles | Vehicle or ute finance | Common for rural vets |
| Refinance | New facility replacing old debts | May improve cash flow or structure |
What is different about rural and mixed practices?
Rural practices often depend on farming conditions. A dry season can reduce farm animal work, while a good one may keep the clinic flat out. Lenders understand that, but they like to see the income spread across clients and services. Travel, vehicles, after-hours work and staff recruitment can all weigh on costs. If the practice sits alongside a farm or lifestyle property, the property position may also be relevant. We explain these points to lenders, and our experience with rural finance helps when the practice and the property are intertwined. For related background, see rural business loans.
If you are considering a purchase or a buy-in, you can tell us the details and we will say what looks workable.
How Ownright arranges veterinary practice finance
Ownright Custom Finance is about finding a way through. Trevor Scott and the team start by understanding what you want to achieve and what the practice looks like on paper. We then test the plan from the lender’s perspective, so the application tells a clear story about earnings, goodwill and your capability.
From there we look across the market. A bank may suit some deals. A non-bank or specialist lender may fit better where goodwill is large, paperwork is untidy or the timeline is short. We work Australia-wide, from capital cities to country towns, and we look for solutions other brokers may not know exist.
An illustration
Illustrative scenario only. A vet working as an associate in a regional mixed practice wants to buy the clinic from the owner, who is ready to retire. The practice owns diagnostic equipment and a couple of vehicles, and the building is leased. A broker might arrange a purchase facility secured over the practice assets and some personal property, separate equipment and vehicle finance, and a short handover period with the retiring owner staying on to introduce clients.
What about opening a new vet clinic?
A new clinic has no trading history, so lenders look closely at the plan. They usually want to understand the local catchment, the competition, your experience, the premises and how long it might take to build a client base. Fitout is a major cost: consult rooms, a theatre, kennels, imaging and a pharmacy area all add up, and much of it can be financed against the assets themselves. Working capital deserves equal attention, because wages, rent and stock are due long before the books fill. A realistic buffer, savings of your own and supporting security can make the difference. If a retiring vet in the area is looking to sell, buying an existing clinic can sometimes be easier to finance than starting from nothing, because there is an earnings record to point to.
How does the lender see after-hours and emergency work?
After-hours and emergency services can lift income, but they also add staffing costs and pressure on the team. Lenders like to see how the roster works, whether the practice is part of a shared emergency service and how that affects profit. Being able to explain it clearly is part of presenting the practice well.
What mistakes should you avoid?
- Paying a goodwill figure the earnings cannot support
- Overlooking the lease terms and make-good costs
- Relying on one vet for most of the income
- Underestimating working capital after settlement
- Assuming equipment finance and the main loan must come from the same lender
- Applying with several lenders at once and leaving a trail of enquiries
What documents should you have ready?
Gather practice tax returns and financials, BAS, a breakdown of income by service, the sale contract or partnership agreement, equipment and vehicle lists, the lease, your registration and qualification details, and personal asset and liability statements. Our guides to business loan documents and getting loan ready cover the usual items.
Sounds like you want to own your vet practice?
Sounds like you’re looking for veterinary practice finance, and we’re ready to help you buy, build or expand. We’re the lending experts at helping vets get the clinic they want, so click the button below and see if you qualify.
How it works, step by step
- 1
Step 1
Tell us about the practice, the plan and your experience.
- 2
Step 2
We review the practice financials, goodwill and your own position.
- 3
Step 3
We approach lenders who understand professional practices and veterinary businesses.
- 4
Step 4
Finance is documented and settled alongside the purchase or fitout.
Frequently asked questions
Can I get a loan to buy a veterinary practice?
Yes, many lenders finance vet practice purchases. They assess the practice's earnings, how much of the price is goodwill, your registration and experience, and the security available. Established practices with a loyal client base and several staff vets are often viewed favourably. We help present the deal to suitable lenders.
How do lenders treat goodwill in a vet clinic purchase?
Goodwill, the value of the client base and reputation, is harder to use as security than equipment or property. Lenders may fund part of it but often want a deposit or extra security. Having an agreed price backed by independent evidence and a handover plan helps.
Can I finance diagnostic equipment separately?
Usually, yes. Digital X-ray, ultrasound, dental units, anaesthetic machines and in-house lab equipment are commonly financed with the equipment itself as security. This can keep the main loan smaller and spread costs over the equipment's useful life. We can compare options before you order.
Is finance different for a rural or mixed-animal practice?
It can be. Rural practices may have seasonal income tied to farming conditions, vehicles and more travel, and sometimes owned premises. Lenders look at the local client base and the stability of income across good and dry seasons. We explain these points to lenders so they understand the practice.
Can a recently graduated vet buy into a practice?
Sometimes. Lenders like to see some experience, but they also consider the practice, the owner's transition plan and the security. A buy-in by stages, or with a retiring owner staying on for a period, can make the deal easier. Tell us your timeline and we will suggest realistic options.
What if a bank has already declined my vet practice application?
A decline does not close every door. The reason may be goodwill, thin security, paperwork or your own credit file. Other lenders can weigh these differently. We ask why it was declined and look at different structures or lenders that might suit better.