Setting up a private medical facility

The basic costs of buying premises may be equalled by the cost of equipping a modern clinical facility. Even basic facilities will cost tens of thousands of pounds. A single bed may cost £5,000 - the cost of a fully equipped operating theatre is in the millions.

Bringing in trained doctors, a nursing team and other medical professionals will mean a huge investment before a single patient has been treated, or a single service billed.

Equity finance is, consequently, the most commonly used method of providing funding - but it means diluting the ownership and profitability of your business. At Rangewell, we have a number of alternative solutions which can help provide the funding you need without sacrificing control.

A Commercial Mortgage for medical facilities

Premises will be a major cost factor for any plans you may have to set up clinical facilities.

If you want to convert an existing building you could consider a Commercial Mortgage. Commercial Mortgages are an affordable way to spread the cost of acquiring all types of commercial property. They work much like a residential mortgage, but with an important difference - they can be used to help you buy an existing clinical practice, as well as the premises it works from. Commercial Property Finance is also always arranged on an individual basis, and rates and terms will be agreed based on your business plans.

For extensive projects and ground-up developments, you may need a more complex finance arrangement. Development Funding can let you build the premises you need to purpose-build a hospital or clinic, and may be able to provide for the cost of land as well for construction.

Lending arrangements can include a roll-up of interest and associated costs into the loan, leaving you with no funding to find until your investment in your business starts to provide returns.

Find out more about clinical premises funding here. 

Capital Funding for hospital projects

This is finance on a large enough scale to support very large-scale business plans - but based on borrowing, which means you won’t have to sacrifice equity in your business.

Growth Capital Funding is actually a type of private equity investment, but structured as a minority investment. Growth Capital Loans are technically Mezzanine Loans and can work well alongside additional senior debt facilities. They can provide sums of £5 million or more, for terms of up to five years, with interest paid quarterly or rolled up and capitalised - essentially providing the benefits of a major investor, without the risk of loss of control.

Asset Finance

The cost of medical equipment is growing. It is not just the obvious items, like CAT and MRI scanners, with costs in the millions. Equipment designed for everyday care, from beds and trolleys to the seating in your reception area, all carry a high price tag.

Asset Finance covers a range of funding solutions designed to let you spread the cost of equipment. Find out more about affording the equipment you need for your hospital or clinic here. 

‘Jigsaw’ Finance for your hospital plans

Developing and operating your hospital may mean a range of funding is required. 

We have found that the most suitable way to provide this is with Jigsaw Funding - a bespoke package made up of the most appropriate type of funding for each need your plans present. It can help access a higher level of funding than could be provided by a single finance option - and reduce costs overall.

Developing Jigsaw Finance must be done on an individual basis. At Rangewell, we can provide an individual service - and experience across the entire lending market - to develop the tailored funding package that you need to build, equip and operate your clinical facility.

We will work with you to understand your plans for your hospital or clinic business, and use our expertise to help find the funding that meets your needs.

Simply call us for any type of GP surgery finance. Our experts are ready to help.