Finance to grow your Opticians’ Practice

You need to extend your premises, take on staff and bring in new equipment. But how can you find the funding to make the necessary investment?

At Rangewell, we work with optician businesses across the country. We can help you use your special status to get up to 100% funding when you want to expand your business.

A Commercial Mortgage could support your expansion plans

Expanding or relocating, premises will be a major cost. You may be able to take suitable shop premises on a long-term lease or, alternatively, you might want to consider a Commercial Mortgage. Commercial Mortgages work much like a residential mortgage and can be used to help you buy a surgery or even an existing practice. Some lenders have a minimum loan value of £75,000 or more, but there is no set upper limit.

Commercial property finance is arranged on an individual basis. Rates and terms will be agreed based on your business plans.

Goodwill Loans for opticians

It may not be simple to withdraw money from your optician practice without reducing your working capital and causing problems with cashflow and jeopardise its future.  A Goodwill Loan, also known as a Capital Withdrawal Loan or Cash Out, can let you access the value in your business without withdrawing funds from it. It can bring you a sum comparable to your annual turnover, probably in excess of £500,000, with repayment terms of up to 15 years.

Goodwill Loans are particularly suitable for opticians as they recognise your professional status with very competitive rates.

Equipment for opticians

Equipment can be a major investment - an OCT system alone could start at £20,000, with costs that keep on going up with every option. Asset Finance can be the most effective way to get the equipment you need for your shop, consulting room or office – or anywhere else in your practice. Asset Finance covers a range of funding solutions:

Hire Purchase

Hire Purchase lets you acquire equipment straight away, with a single deposit payment. It then lets you spread the costs in regular monthly instalments over up to 5 years. At the end of this term, you own the asset outright, making it ideal for items which have a high cost and a relatively long life. Your OCT solution could be provided in this way.

Leasing

Leasing works much like a rental agreement. It lets you use the equipment without having to buy it, with a payment each month to the finance company. For technical equipment which could go out of date, leasing can be ideal, as it can be easy to update when a better model becomes available. Leasing can also include maintenance agreements - meaning that keeping your equipment in perfect condition remains the responsibility of the lender - helping you avoid any unexpected costs.

Leasing may be suitable for items such as keratometers.

Both new and used equipment can be funded with Asset Finance solutions.

Borrowing the funds you need to grow

A business loan could provide solutions for many types of growth plans.

Secured Loans

Secured Loans can provide a high level of funding, with rates that can be as low as 2% above base rate, and ten or more years to repay. They are secured because they are supported by security, such as your existing premises or your home, that the lender can take and sell if you became unable to make repayments. This reduces the risk to lenders and allows them to reduce the cost to you. They can have a part to play in expanding your business, and could even be sufficient to acquire smaller premises.

Unsecured Loans

Unsecured business loans are a straightforward way of borrowing and operate much like a personal loan which can be used in any way you wish. They are suitable for smaller sums, up to £250,000, but often far less. The loan is repaid in monthly or quarterly instalments over an agreed term under 5 years. Decisions can be fast, inside a working day with some lenders, but you will need to provide a personal guarantee, meaning that you will become personally liable for the debt if your business was unable to pay.

‘Jigsaw’ Finance

The growth plans you have for your opticians' practice probably don’t fit a single solution. We can provide Jigsaw Funding - a bespoke package made up of the most appropriate type of business funding for each purpose. So a business might have Jigsaw Funding made up of Asset Funding for equipment, a Secured Loan or Commercial Mortgage to acquire premises, and a cashflow solution based on a Merchant Cash Advance, funded by your card takings. We have found that it can help people ready to make the most of their business, access a higher level of funding that could be provided by a single finance option - and reduce costs.

The finance you need to grow your practice

As a professional optician with your own practice, you may be in a very good position to raise the finance you need when you are ready to consider expansion. Your special status may make it possible to get 100% finance for your plans.

Many lenders will be happy to work with you - but not all will be able to offer the most competitive solutions for your needs.

At Rangewell, we know lenders that offer the most attractive funding solutions. But we don’t stop there. We will work with you to understand your business plans and use our expertise to help find the funding that meets your needs. We can find the most competitive rates for all types of finance, including Professional Loans, Unsecured and Secured Loans, Invoice Finance, Asset Finance, Merchant Cash Advance, Commercial Mortgages, Growth Finance and more.

To find out more about setting up the finance you need to grow your practice and open a second branch simply call us. Our experts are ready to help.