Finance for day surgeries
Providing medical facilities requires investment. We can help you find the most appropriate funding for your plans.Speak to one of our experts020 4525 5312
- Spread costs over 6-60 months
- Rates from 6%
- Undercut ’0%’ deals from equipment suppliers
- Asset Refinance available
- Working capital
- Tax Finance
- Mezzanine Funding
- Secured lending - from 2% above base rate
- ‘Jigsaw’ Funding
Providing medical facilities requires investment. We can help you find the most appropriate funding for your plans.
Providing medical facilities requires investment. We can help you find the most appropriate funding for your plans.
Table of Contents
With new techniques and treatment protocols, there is a growing demand for daycare - and for new funding solutions to help providers offer the facilities that patients need.
Healthcare is changing. Private healthcare is becoming more popular and the NHS will now call on private sector facilities to provide swift access to effective care.
Technology and costs mean that daycare is fast becoming the solution of choice for many investigations and treatments that once were only possible for inpatients - meaning that providing day surgery facilities can be an effective business strategy.
However, at the same time, the cost of providing care is growing. Technology and professional standards make large costs unavoidable if you are to provide any kind of medical facilities, and the standards required for daycare are no different from those of a traditional clinical facility.
If you are to answer the growing demand for daycare facilities you need to be able to call on high levels of finance.
At Rangewell, we are committed to helping businesses in the healthcare sector find the financial solutions they need. We can help you at every stage, from premises purchases and equipping them as a daycare facility, to providing operating funding. We can even find refinance solutions, helping you cut the cost of any existing financial equipment.
Funding options for day surgery facilities
As experts in all aspects of business funding, we can work with you to find the most appropriate funding option to:
- Buy an existing day surgery
- Buy premises and build specialist facilities
- Provide equipment and assets
- Provide operating finance
- Refinance existing facilities
Funding to buy a day surgery
Buying an existing day surgery may require a substantial investment, but it may have the advantage of providing you with an existing business that is already profitable and with a steady stream of referrals and patients to generate an income.
It may be possible to arrange a secured business loan to help you buy a day surgery as a going concern.
If you are thinking of buying into a large practice, you may need to do so as a partner - or buy out a partner who may be retiring. Buy-in and Buyout Finance recognises these challenges and can provide funding tailored to help you make full use of the opportunity.
If you then want to buy additional practices, dedicated acquisitions finance may be available. Find out more here.
Buying medical premises
If you intend to set up your own day surgery facility, you will first need premises. A surgery or walk-in clinic may operate from dedicated premises or a suite in an existing hospital or clinic.
If you need to acquire premises we can provide solutions including:
Many types of property may be acquired through a long-term lease. Arranging a suitable lease may mean a large initial payment - we can help find lenders who can provide the necessary lump sums, as a secured or unsecured loan.
Buying suitable property for your medical facility can provide an important asset for your business, and with the right arrangements may be arranged at monthly costs which actually undercut a lease.
A Commercial Mortgage operates much like a residential mortgage. The loan is secured on the property itself and can run for 15 years or more. It can be used to buy land and existing premises of all types. Unlike a residential mortgage, however, the rates for a Commercial Mortgage are arranged on an individual basis. Lenders will look at your financial situation and projections to establish a fair rate. Our knowledge of the lenders and rates available can be essential to achieve a competitive deal.
Find out more about Commercial Mortgages here.
Renovating existing facilities
Buying run-down property is not usually possible with conventional mortgage funding. Refurbishment Finance can provide the means to buy and convert a property for medical use. It may also be possible to use Property Development Finance to provide funding to buy property for conversion or demolition and redevelopment. It is only available for experienced developers, but if your medical business has a professional property team, you may be able to secure funding on the same basis as commercial developers. Property Development Finance usually takes the form of a short-term loan and lenders may advance up to 70% of the gross development value.
Find out more about Property Development Finance here.
Medical Equipment costs
The costs of medical equipment has always been high. With high-technology new equipment such as CT suites, MRI and PET scanners becoming essential in many clinical settings, the equipment needs for your day surgery may be substantial. Fortunately, the costs of most medical equipment can be covered by Asset Finance. Asset Finance includes a range of Hire Purchase and leasing arrangements and can let you spread the cost of equipment.
Hire purchase offers a straightforward way to spread the cost of providing equipment. You will need to put down a deposit, usually between 5%-25% of the total price, and repay the remainder, together with the interest, over an agreed period from 6 to 60 months. You pay a fixed rate of interest and agreed monthly payments, making budgeting simple to align with your monthly turnover.
Medical equipment dealers may offer HP arrangements during the sales process. These can look very attractive, and even include 0% options, but these deals often mask hidden costs. You may be able to save money by paying cash and arranging finance with our help. See how we can help you beat 0% finance deals.
With a lease, you hire your equipment for the period of the agreement, avoiding any need for capital expenditure from you. Monthly payments are fixed, and you can pay for your equipment from the income it generates each month. You may also be able to choose a lease which makes maintenance and repair the responsibility of the finance company. Leasing is particularly suitable for high-cost equipment which will need to be replaced when technology moves forward. For example, MRI scanners with costs in the millions are almost always leased.
You can find out more about Asset Finance here.
Refurbished equipment can be a sound investment, especially if you are setting up a new practice. However, many day surgery operators miss out on the potential savings because they believe they need to find cash to pay for it.
At Rangewell we can help you spread the cost of used as well as new assets with Asset Finance. Find out more here.
Your day surgery will mean substantial operating costs. Skilled staff will need their salaries paid, and your suppliers' invoices will need to be settled on agreed terms. Particularly in the early days of operating your facility, the cash may not be there to cover the costs you face.
Operating and growth finance solutions exist to provide the funds you need.
Operating Capital Finance
Working or operating capital finance is designed to boost the working capital available to run a business. It's often used to provide cash to pay staff during the early weeks and months of opening a new medical facility. It is designed to be repaid in the short- to medium-term, once your business has achieved its target profitability.
Our finance experts can help solve your working capital needs
Large quarterly VAT bills or annual tax demands can cause problems with the cashflow of your medical business, particularly when that falls at the same time as other costs.
Tax Loans help you to spread the cost of your tax demands into affordable monthly payments, ensuring that your business does not have to go through cashflow difficulties because of a minor tax liability.
See how a Tax Loan can mean better control of cashflow with fixed monthly payments.
Refinance your Day Surgery
If you already have financial arrangements in place for your day surgery business, you may believe that you are locked into them. At Rangewell we know that this is not true - and that if you already have loans, leases or other commitments in place the chances are that you could replace them and improve your financial position by refinancing.
Refinancing is the replacement of an existing debt with another debt obligation under different and usually much better terms. So a loan might be refinanced to take advantage of a better interest rate, providing a reduced monthly payment or a reduced term.
You simply take out a new loan with a better rate, and use it to pay off your existing loan.
In the same way, refinancing your Asset Finance arrangements might let you pay less each month for the equipment you use.
The chances are if you have had your existing arrangements in place for a year or so that we can help you find a loan that works out cheaper each month - reducing your commitments and improving your cashflow.
The potential benefits of refinancing don’t stop there. You can also refinance to release cash to reinvest elsewhere in your medical business.
So for example, if your business has a large and valuable facility such as an x-ray suite, you can refinance it. A lender will, in effect, buy it from you and pay you a large sum of cash, and then allow you to buy it back from them with a standard Asset Finance arrangement. Sale and Leaseback is another type of refinance that can take assets off your capital list, and allow you to fund them from operating expenditure.
You can find out more about refinancing here.
If your organisation already owns premises, refinancing with a Commercial Mortgage can also be used to let you access very large-scale funding.
By remortgaging an existing property your business can receive a cash lump sum which is comparable to its market value to use as you wish. So existing clinical premises could be used to raise funds to acquire other property or to provide equipment. You would simply make monthly mortgage repayments until the property becomes yours again.
It is usually not necessary to have paid off the initial purchase of a property to be able to remortgage it.
Find out more about commercial refinance here.
Why you need Rangewell to capitalise your day surgery
At Rangewell, we understand the pressures you face as a medical facility operator.
We work closely with medical businesses across the UK, which has helped us build expertise both in understanding the challenges - and in finding the funding you need to answer them.
So whether it is finding the cash for a single piece of medical equipment, or a multi-million-pound loan to let you build and equip a new day surgery from the ground up, we are ready to help. Our knowledge and experience works for you, and by calling on our support you can give your day surgery business a competitive advantage.
We know the lenders who can provide the most competitive funding to the sector.
As well as conventional loan products, we can help you find Alternative Funding, using new loan providers and innovative funding solutions.
Whether your answer is a straightforward, small-scale funding need, or a complicated ‘Jigsaw’ Funding plan made up of a combination of financial products, we can work with you to find the answers you need.
Call us now to get our experts working for you and your day surgery business.
Last update: 7 June 2023
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