Setting up a private medical facility
- From 2% above base rate
- Up to 25 years terms
- Interest-only or capital repayment
- Buy premises or existing business
- Unsecured lending from from 6%
- Up to 5 years to repay
- Secured lending from 2% above base rate
- Long repayment terms
Growth Equity Finance
- Private capital investment
- £5 million - No Maximum
- Suitable for businesses with up to £25 million turnover
- Capital is rolled up to the end of the term
Setting up a private medical facility, a hospital or specialist clinic or surgery could be the basis of a rewarding business. But the scale of funding required will be substantial
The scale of investment required to set up a modern clinical facility is staggeringly high. Even the smallest clinic may mean costs of a £1million or more in many regions of the country.
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.
The level of funding your require may be more than most lenders will provide as funding for start-ups.
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 unil your investment in your business starts to provide returns.
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.
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.
REAL EXAMPLES OF WHAT WE CAN DO
Help arrange a 100% loan to set up a specialist surgical facility
Find a lender to provide a Commercial Mortgage to acquire premises
Help arrange Asset Finance to equip a cosmetic surgery clinic
Help arrange Jigsaw Funding for a laser surgery start-up
‘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. Our experts are ready to help.
Helping you build your profits
Funding tailored to your needsFunding can be drawn together from several sources and tailored to your needs.
Large-scale fundingThe scale of your needs may require special solutions.
Asset FinanceAny type of equipment can be acquired with Asset Finance solutions.
Covering all the costs with Jigsaw FundingWe can help you arrange bespoke funding tailored around your needs.
Early repayment optionsSome loan providers will accept early repayments, reducing the total cost of your borrowing.
Cutting borrowing costsAt Rangewell, we search the entire UK lending market to find the most appropriate solutions for your funding needs, helping you reduce the costs of your expansion plans.
Download Rangewell’s free and detailed guide to Finance for the Medical Profession
What types of finance are available and which is right for your hospital or surgery?
Are all lenders authorised and regulated by the financial conduct authority?
We offer private healthcare medical procedures, are we eligible to apply for finance?
Lifting the lid on interest free finance/0 apr representative
What terms and conditions apply to medical loans?
Key finance terms explained, including total amount repayable, subject to application and amount of credit
Is there a difference between monthly payments and monthly instalments?
My business offers multiple medical treatments, what costs can I finance?
Download our free resource on finance for hospitals and surgeries explained
Getting the right funding arrangement is essentialThere are many forms of business finance available. Getting the most appropriate type for the business needs of your practice is essential.
Your key equipment could be at riskIf you are unable to keep up repayments on a hire purchase or lease agreement, the equipment your practice depends on could be could be at risk.
Long-term financial commitmentsYou may not be able to pull out of a finance arrangement once set up.
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