Finance to Support Your Care Home Expansion

Consolidation and expansion are important factors in the care sector. Care homes providing elderly care, specialist care for vulnerable adults, or children's care homes are often operated by groups, providing resources to provide the highest standards while enjoying economies of scale. So, 

So, you already have a care home business - perhaps you own one or multiple facilities in the same care home agency or group. You are now in a strong position to embark on your next venture, whether that's expanding an existing care home, offering a new type of clinical care or starting a new care home.

Whatever your plans, you will likely need care home finance to fund this growth. Any new funding packages should fit with your existing finance arrangements. In addition, you should find that the funding helps rather than hinders your business. 

How care home finance can help

A business loan should help you meet your ultimate goals. Whether opening a new care home, refurbishing your existing facilities, or branching out into a new sector, there are several different ways care home finance can help you succeed in business.

Care home finance can help you to :

• Buy an existing care home facility or group
• Start a new care home
• Acquire, maintain and repair equipment and assets
• Support your cash flow 
• Deal with tax requirements
• Deal with unforeseen problems

So, if growth is on the horizon for your care home, then make sure you have the financial backing to achieve your objectives. Whether one or multiple points on the above list apply to you, we can help. 

At Rangewell, we have a team of independent advisors who scour the whole of market, including traditional and specialist lenders, to find and secure the best finance for your circumstances. We don't just help to find loans, although that is a huge part of it.

We are also here for the application process. From supporting with the application itself through to identifying common risk factors that affect what lenders can offer, we have a wealth of experience to help you get the best results and find a funding package that aligns with your goals. 

Buying an operational care home

Buying an existing case home or care home group can be a great way to expand your business. Depending on the acquisition terms, you may purchase a profitable operation with established care providers and equipment. 

However, a care home acquisition can be expensive, especially if the operation is turning a profit and has high occupancy rates. You could get a better deal if you buy a struggling care home then, you will need to take into account the costs of turning this business around and improving the CQC rating. 

Either way, the purchase of an operational care home can be a great way to expand your care home group. If you have a positive reputation, then this will make an impact when it comes to rebranding the care home and bringing it under your umbrella. If you have a waiting list for potential residents, then you could direct them towards your new acquisition and make it clear that you will be offering the same quality of service at this new facility. 

Lenders are often keen to offer finance to established care home operators buying another facility, especially if the business you are buying has residents in place. 

Buying any business is expensive, so you will need a finance package that supports your acquisition and covers all of the necessary costs. To make sure you're getting the best possible funding for your care home, speak to Rangewell's advisors about care home finance. 

Starting a new care home

Many care home groups will invest in a brand new care facility, either building a development from the ground up or acquiring property and applying for change of use. Either way, a new facility requires significant investment and you won't start making any money until the doors open to residents, so you'll need to take that into account when it comes to financing your project.

Care home mortgages can help you spread the cost of acquiring a suitable property over 20 years or more. Setting up a care home may involve many other expenses, but with the property being looked on positively by most lenders, as an existing care business, it may be relatively easy to secure the mortgage you need. 

To find out about commercial mortgages and start your loan application, get in touch with Rangewell today. 

Buying care home equipment

Whether you're buying an existing care home or starting a new facility, you will likely have equipment needs. Care home equipment can be expensive, not just to acquire but also to maintain and repair. Since it's a vital part of your business, you will need the funds to back you up. That's where asset finance comes in. 

Asset finance lets you spread the cost of the equipment - or assets - you need. There are several types of asset finance, including hire purchase and leasing. 

Hire purchase allows you to hire assets until you have paid for them. HP agreements generally last between 12 and 72 months and require a 10-20% deposit plus fixed monthly instalments. Meanwhile, leasing operates very much like a rental agreement, with a monthly charge to use the asset.

If you have care home equipment needs, then speak to Rangewell today about accessing finance. 

Hiring staff for your care home

Behind every successful care home is a team of talented professionals who provide quality care to the residents on a daily basis. As you need to hire equipped and experienced staff, you need the funds to offer a competitive salary and benefits. It is now recognised as highly desirable that staff working in care roles should be required to register with an independent body that oversees standards within the profession.

Cash flow support and Working Capital Finance can provide cash to deal with large costs and overheads and keep your cash flow in the black. It is usually designed to be repaid in short to medium-term once the imminent problem has been dealt with. 

Care home finance from Rangewell

As you can see, expanding your care home group may present a number of financial challenges. Thankfully, you're not alone. With Rangewell on your side, you can be sure to have access to the best possible funding to meet your needs and even combine your financing solutions into a bespoke package known as Jigsaw Finance.

At Rangewell, we work with businesses across the care home sector to access the funding they need to achieve their goals. Ready to apply for care home finance or want to know more? Get in touch with Rangewell today.