Establishing a Nursing Home or Care home can be a very rewarding and fulfilling career. It has become general knowledge that with trends of a healthier lifestyle and medical technology advancing people are living longer and living healthier. This has, therefore, had a secondary effect of the population to live longer and has significantly increased over the last two decades.
New regulations have forced many existing homes to close and made it more difficult to convert existing properties into care homes. Due to these circumstances’ costs have risen since the act was passed. However, with sufficient investment, buying, or setting up a care home can still provide a financially rewarding business.
A benefit of running a nursing or care home facility is that you do not need to be VAT registered due to being in the caring industry.
You may need to find the right type of funding option to allow you to:
- Refurbish your current premises
- Acquire new premises
- Acquire or upgrade your equipment
- Update areas
- Fund ongoing operating costs
- Finance growth
- Deal with unexpected tax bills
- Preserves your working capital.
- Access to high standard equipment.
- Allows you to expand/ upgrade without being tight on cashflow.
- Can work out more expensive than buying the equipment outright.
- You do not own the assets so they cannot be classed as an asset within the business.
- If the assets you want to use as collateral are given a low valuation, it could substantially reduce the amount of funds you're able to obtain.
- Costs can be high when your asset is industry-specific or there is limited appeal from the lender.
At Think Business Loans we understand the costs and challenges that the nursing and care sector presents and have the experts to help support you with appropriate funding solutions. That is why we have a team of experts here to advise you on the best options that are available to you at competitive prices.
If you are unsure on what path to follow, a good first step is to fill out the form below to see what loans your business is eligible for.
The business who approached us provides assistance to over 250 elderly people within and around Plymouth. The client helps with the housework, shopping, personal care, medicines, and meal preparation within the comfort of their customer's homes. They also provide personal and emotional support to people in six sheltered accommodation projects.
With the increasing trend of healthier lifestyles and improvements in technology, people are living longer. This is where the client provides support for those who need an extra helping hand in day to day activities. They wanted to take the opportunity to expand their business as it was becoming increasingly successful. However, as they were expanding, it was making an impact on cash flow.
That is when we were approached, asked for advice on the best pathway to take for short-term funding; to help manage cash flow whilst the expansion was taking off. One of our experts spoke with the client, and decided the best option would be a business overdraft, as it is a short-term loan that is accessible quickly.
A business overdraft gives you flexible access to cash when you need, and you only pay for the amount you borrow. Business overdrafts can be a really useful way of accessing working capital when you need the cash quickly and are used to provide the working capital that covers a company's short-term operational needs.
The benefits of using a Business Overdraft are:
- Borrow and repay quickly.
- Unlikely to have restrictions on the finance.
- Short term loan to help with cash flow whilst expanding.
- No collateral is needed.
Want to know more about business overdrafts? Click here.
With the business overdraft the client was able to successfully expand and provide care to more elderly people within the area. It also relieved stress and pressure from the business since they were able to manage the cash flow better during the completion of the expansion.