Dental chair finance in Australia: Loan options, repayments, and buying scenarios explained

Explore real finance scenarios for dental chairs in Australia. Learn loan types, repayments, and how to qualify faster with the right supplier.

Key takeaways

• Dental chair costs vary: New dental chairs in Australia cost $7,000 to $25,000, while used chairs range from $3,000 to $12,000, depending on features, age, and brand.
• Finance-ready terms: Most dental chair loans are structured over 3 to 5 years, with average monthly repayments starting from $180/month for used and $400/month for new chairs.
• Chattel mortgage is preferred: For tax and ownership benefits, a chattel mortgage is the most popular structure among Australian dentists.
• Instant asset write-off applies: Eligible practices can write off the full cost of chairs under the instant asset write-off scheme (check ATO thresholds).
• Approval insights: Finance providers assess credit history, business tenure, ABN/GST registration, and cash flow. New clinics can access low-doc loans or guarantor-backed loans.
• Used chair financing: Good brokers validate asset condition and help avoid inflated valuations or compliance risks.
• Watch for balloon traps: A balloon payment may lower monthly outgoings but adds a significant lump-sum at term end.

Introduction

Dental chairs are the backbone of any dental practice. Whether you’re setting up a new clinic, expanding treatment rooms, or upgrading to ergonomic, fully digital units, the cost of dental chairs in Australia can be significant. For many dentists, financing a dental chair rather than paying upfront is a smart and cash flow-friendly option.

This comprehensive buying and financing guide will help you explore funding options for both new and used dental chairs in Australia, understand what finance companies are looking for, and identify potential pitfalls before you sign a loan agreement.

Dental chair price ranges in Australia

Knowing your budget helps determine the best finance solution. Here’s what to expect in terms of cost:

New dental chairs:

• Entry-level (basic reclining and LED light): $7,000 – $10,000
• Mid-range (integrated suction, sensors, chair-mounted delivery): $11,000 – $17,000
• High-end (touchscreen controls, imaging, seamless upholstery): $18,000 – $25,000+
  
  

Used dental chairs:

• Older models with basic functions: $3,000 – $6,000
• Recent mid-range models (<5 years): $6,500 – $12,000
  
  

Used chairs are often refurbished and resold by dental suppliers or exiting practices. Ensure compliance with TGA medical device standards if imported or refurbished.

Popular financing options for dental chairs

Chattel mortgage (recommended)

• You own the asset from day one
• Repayments are fixed
• GST claimable upfront (if GST-registered)
• Asset depreciated under ATO rules
  
  

Example: A $15,000 chair on a 5-year chattel mortgage at 7.5% p.a. for approx. $301/month.

Equipment lease

• Monthly rental
• No ownership unless opting to buy at lease-end
• 100% tax-deductible
  
  

Suitable for short-term upgrades or clinics that need to preserve capital.

Rental or operating lease

• No upfront payment
• Flexible return or upgrade options
• Best for public clinics, community centres, or temp setups
  

Loan structure and repayment scenarios

Here are some real-world repayment breakdowns for different scenarios:

Scenario A: New chair for growing practice

• Chair cost: $22,000
• Loan: Chattel mortgage
• Term: 5 years
• Interest: 7%
• Monthly repayment: $435/month
• Instant asset write-off applies (if eligible)
  
  

Scenario B: Refurbished chair for new clinic

• Chair cost: $6,500
• Loan: Low-doc lease
• Term: 3 years
• Interest: 9.5%
• Monthly repayment: $210/month
  
  

Scenario C: Upgrade multiple chairs

• Total cost: $60,000
• Loan: Chattel mortgage
• Term: 5 years
• Interest: 7.2%
• Monthly repayment: $1,195/month
• Balloon option: $12,000 residual reduces monthly to $960/month, but be cautious about the lump sum later.

What lenders look for during approval

Finance providers want to mitigate risk. These are key approval criteria:

• ABN and GST registration (at least 6 months preferred)
• Business bank statements (3-6 months)
• Credit score/history of business owner(s)
• Quote or invoice from equipment supplier
• Proof of turnover or projected cash flow (especially for startups)
  
  

New dentists or clinics can consider guarantor-backed loans or low-doc options with higher interest.

How a good finance broker helps

An experienced equipment finance broker should:

• Assess your cash flow and suggest repayment terms that don’t overstretch you
• Understand ATO tax treatments and advise on chattel mortgage vs lease
• Negotiate better rates with lenders
• Validate the market value of used chairs
• Ensure supplier is reputable and product is TGA-compliant
  
  

Look for brokers who specialise in medical and dental equipment.

Things to be cautious of with used dental chair loans

Used equipment can be tricky to finance. Here’s what to keep in mind:

1. Overvalued chairs

• Some sellers inflate prices
• Brokers should check market value
  
  

2. No warranty or compliance issues

• Ensure chair has a warranty
• Must comply with Australian safety and hygiene standards
  
  

3. Limited lender appetite

• Fewer lenders finance used assets
• Interest rates may be higher (8.5% to 12%)

Tax benefits of financing

Instant asset write-off (as per ATO 2024-2025)

• Eligible small businesses (<$10M turnover) can claim full cost of the chair upfront
• Applies to chairs installed and ready for use before June 30
  
  

GST input credits

• For GST-registered businesses
• Full GST amount claimable on chattel mortgage
  
  

Consult a dental-savvy accountant before EOFY.

Supplier considerations when financing dental chairs

Choosing the right supplier is vital for smooth finance approval. Lenders often delay or reject applications if supplier quotes are unclear or non-compliant.

Key points:

• TGA compliance: Ensure the supplier sells TGA-registered dental chairs meeting Australian safety standards.
• Formal quotes: Obtain detailed, itemised quotes with the supplier’s ABN, GST, and clear product descriptions.
• Warranty and service: Confirm warranties and maintenance packages are included to reduce equipment risk.
• Reputation: Choose suppliers with strong track records to avoid delivery or quality issues.
  
  

Tips to avoid finance delays: Request a compliant quote, verify supplier credentials, and consult your finance broker to ensure lender requirements are met. This approach speeds up approval and prevents paperwork issues.

Financing dental chairs as part of a full clinic fitout

Dental chairs are often part of a larger clinic fitout including cabinetry, sterilisation, and imaging equipment. Financing all equipment together can simplify repayments and improve loan terms.

Why bundle finance?

• Single repayment: Manage all equipment costs under one loan for easier cash flow.
• Better rates: Larger finance amounts may qualify for lower interest rates.
• Tax benefits: Claim instant asset write-offs on the total equipment value.
  
• Streamlined approval: Lenders prefer funding complete fitouts in one package.
  
  

What can you bundle?
Cabinetry, sterilisation units, digital imaging, compressors, and practice software.

How to proceed:
Work with a dental finance broker, get itemised quotes for all equipment, and consider staged drawdowns to align payments with delivery. Choose terms that fit your budget and growth plans.

Bundled finance helps clinics expand efficiently while managing capital and operations effectively.

FAQs on financing dental chairs

Q1: Can I finance multiple chairs in one loan?

Yes. You can bundle several chairs or other equipment (e.g., sterilisation units) under a single equipment loan for ease of repayment and documentation.

Q2: What is the average interest rate for dental chair finance in Australia?

As of mid-2025, rates range between 6.5% to 9.5%, depending on creditworthiness, business history, and new vs used equipment.

Q3: Can I get finance if I’m starting a new practice?

Yes. New clinics can access finance via:

• Guarantor-backed loans
• Low-doc chattel mortgages
• Personal asset-secured loans (if credit is limited)
  
  

Q4: What documents will I need to apply?

Typically:

• ABN and GST registration
• Supplier invoice or quote
• 3-6 months bank statements
• ID and credit check
  
  

Q5: Should I consider balloon payments to lower my monthly repayments?

Only if you can confidently pay the balloon at the end. For a $20,000 loan with a $5,000 balloon, repayments drop by ~15%, but you'll owe $5,000 in five years.c 

Final thoughts: making the right finance move

Financing a dental chair can free up working capital and help you offer better patient experiences sooner, but it pays to make informed decisions. Compare finance options carefully, seek professional broker guidance, and don’t underestimate the importance of equipment condition and tax strategy.

Whether you're fitting out your first chair or upgrading to state-of-the-art treatment rooms, the right finance structure can set your clinic up for years of operational success.