Last reviewed: 30 October 2026 · Written by John Pierre Saliba, Director, OverdraftMe
Health and wellness businesses in Australia usually run a business overdraft for day-to-day gaps such as HICAPS and Medicare rebate delays and quiet December trading, and a fixed-term business loan for equipment and fitouts. Non-bank lenders fund $10,000 to $500,000 on 6 months of bank statements, with no property security under $150,000 and decisions from 1 hour.
Health and wellness is one of Australia's fastest-growing sectors - but rapid growth creates its own cash flow challenges. Whether you're running a gym, physio clinic, allied health practice or beauty salon, understanding your finance options is essential for sustainable growth.
Cash flow challenges in health and wellness
Health and wellness businesses face a particular set of financial pressures:
- Equipment costs - commercial gym equipment, treatment tables, specialist medical equipment can cost tens of thousands upfront
- Fitout expenses - setting up or refurbishing a clinic or studio requires significant capital
- Seasonal demand - January sees a surge in gym memberships and wellness services, while December can be slow
- Staffing costs - qualified health professionals command competitive wages
- Insurance and licensing - ongoing professional requirements add to fixed costs
- HICAPS and Medicare delays - allied health practices often wait for health fund and Medicare rebate payments
Business overdraft for health and wellness
A revolving business overdraft is ideal for managing the day-to-day cash flow gaps that come with running a health or wellness business. Draw on it during slow months, repay during busy periods. Only pay interest on what you use.
Common use: A physiotherapy clinic draws $20,000 from their overdraft in December to cover wages and lease payments during a quiet period. By late January and February, as clients return from holiday, revenue rebounds and the overdraft is repaid.
Business loans for equipment and fitouts
For capital investments - gym equipment, fitout, treatment room setup, or opening a second location - a business loan with fixed weekly repayments gives you the certainty of knowing exactly what you'll pay each week. Spread the cost over 1-5 years.
Eligibility for health and wellness businesses
- Active ABN - business loans from 6 months; overdrafts typically 1+ year (property owners) or 2+ years, assessed case by case
- Minimum $6,000 monthly turnover
- Good credit history - Equifax 550+
- Australian citizen or permanent resident (owner/director)
- 6 months business bank statements
- No property security required under $150,000
How much overdraft does a clinic or gym actually need? Three scenarios
Non-bank lenders size an overdraft at roughly 1 to 1.5 times average monthly revenue. The right limit, though, depends on the specific gap you are funding. These three profiles are typical of the health and wellness files that come through OverdraftMe.
| Business | Monthly revenue | The gap being funded | Facility guide | Cost of a typical draw |
|---|---|---|---|---|
| Physiotherapy clinic, 3 practitioners | $35,000 | HICAPS and Medicare rebates landing 2 to 6 weeks after treatment; wages paid fortnightly | $35,000 to $50,000 | $20,000 drawn for 30 days: about $300 interest |
| Gym, 24-hour franchise model | $60,000 | December dip before the January membership surge; equipment lease still due | $60,000 to $90,000 | $40,000 drawn for 60 days: about $1,180 interest |
| Beauty salon, 2 chairs plus retail | $18,000 | Product and stock orders ahead of the Christmas period | $18,000 to $27,000 | $10,000 drawn for 45 days: about $220 interest |
In each case the facility is an unsecured business overdraft with no property security, and the undrawn limit costs only the line fee of 0.5% to 2% p.a. If the gap is a single known amount, such as a fitout deposit, a fixed-term working capital loan is usually cheaper than leaving an overdraft drawn for a year.
Frequently asked questions
Can a physio or allied health clinic get an overdraft while waiting on Medicare and HICAPS rebates?
Yes. Rebate timing is one of the most common reasons allied health practices use an overdraft. Lenders assess 6 months of business bank statements, so a clinic depositing $6,000 or more a month with an Equifax score of 550 or above can be approved from 1 hour, with no property security under $150,000.
Can a new gym or studio get finance in its first year?
Business loans are available from 6 months of trading. Overdrafts typically need a 1-year ABN if you own property or 2 years if you do not, with strong candidates considered earlier and every application assessed case by case. A studio that opened with a strong membership base and clean statements is exactly the kind of file that gets considered early.
Is equipment finance or an overdraft better for gym equipment?
For a large, one-off purchase such as a $40,000 rack of commercial equipment, a fixed-term business loan or equipment finance gives a known weekly repayment over 1 to 5 years. An overdraft is better kept for the recurring gaps: rent and wages in a quiet month, or the lag between delivering a service and receiving the rebate. Many clinics and gyms run one of each.
Health & wellness finance at a glance
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