For a brand new practice, you can expect to pay around £100,000 and £200,000 depending on the size of the premises. You should expect to pay around £10,000 on your IT systems, and you should dedicate around £40,000 per room.
Finance for Opticians: Optometry Practice Loans & More
We bring clarity to business loans for optometry practices and opticiansSpeak to one of our experts020 4525 5312
- Spread the cost of any opticians equipment
- Use the latest ophthalmic technology
- Buy over up to 60 months or lease
- Release cash tied up in equipment
- Opticians get 100% funding
- Buy premises with a commerial mortgage from 2% above base rate
- Buy your competitors
- Take on staff, expand your practice
Any funding need
- Release wealth from your practice with a goodwill loan
- Tax bill? Spread the cost
- Lending to let you buy in as a partner
- Fund marketing - training - development
Practice Loans for Opticians
For business owners who have vision, we can provide finance to help you grow
As an optician with a practice to run you need finance that recognises your professional status and the challenges you face. At Rangewell we work harder to help you find it. Remember, as an optician you have a special status - lenders may be able to offer 100% finance for many of your business needs.
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See the Optician Industry more clearly
Rangewell offers tailor-made finance solutions from our range of optical loans, leasing, and hire purchase products. Our team of specialist experts understand the financial challenges and opportunities in the optical sector.
Rangewell can offer optical finance solutions for optometrists, opticians, and optical professionals designed to help with growth and development.
Loans can be used for the acquisition or relocation of a practice, a revamp, for the purchase of new technical equipment, or simply a loan to cover your tax demand. In all cases, we will work with you to discuss your business requirements and then help you find a suitable financial product to support your goals.
So whether you're unsure as to the right type of loan for your business, which lender to work with, what rates or terms are suitable for your situation or any other concerns, we can help.
You can expect a fast response from our in house underwriters, who can deal directly with multiple suppliers on your behalf, allowing you to focus on the day-to-day running of your business.
What business loans are available for optician practices?
Secured Bank Loans
Traditional bank lenders may be able to offer practice loans to businesses that can meet their strict criteria. However, it can be challenging to qualify for optician practice funding, especially in the first stages. Getting a lower interest rate and a higher amount may prove challenging. Still, for the entrepreneur starting out, it may be impossible to get a high credit score, which is essential for security against the loan.
By advertising your desire to start up an optician business practice on crowdfunding websites, you'll stand chances of having to wait months for the funds to be gathered. In some instances, the project won't be funded at all.
Seeking out a private investor is an excellent way to get optician's finance. While you can often get the funds you need quickly, investors will often want to have a say in the business, and for the optical sector, this is not ideal.
Alternatively, we can help you find an alternative finance provider -- a type of lender that works with independent investors but lends through their own business platform. This means you can benefit from the flexibility of independent investment with more security around who you are working with.
Business credit cards and overdrafts
If you're struggling to get a bank loan, then you might be able to access a business credit card or an overdraft facility. Most credit cards will have a limit on how much can be withdrawn, and often credit cards and overdraft facilities have limitations and high-interest rates.
Business loans for medical facilities
At Rangewell, we can offer you brokered business loans for your optical practice. In addition, we offer unsecured loans, so you won't be required to secure the funding your receive against any collateral. Opting for an unsecured business loan may suit smaller businesses just starting and can support you with the extra support and flexibility when you need it the most. It will help with expansion costs or simply aid you in the maintenance and upkeep of your business.
What loans are available for optician equipment?
Whether you are starting up, buying into an existing practice, or ready to move your current business on, specialist equipment is vital. From a smart mirror to an ophthalmometer/keratometer, you need the latest equipment to remain competitive and deliver high standards of customer care.
At Rangewell, we have found that asset finance can often provide the most cost-effective solutions. Asset finance is a broad term that describes numerous ways to finance the purchase of a new piece of machinery or equipment. Two common options include:
If you need equipment that you want to go on giving service for years, Hire Purchase can provide the solution.
If you need the latest equipment without the cost of owning it, leasing will give you the freedom and flexibility you need.
New or used?
Good quality used equipment can be a sound investment, especially if you are setting up a new practice. However, many opticians miss out on the potential savings because they believe they need to find cash to pay for it. Many forms of business lending allow for purchasing a used asset, which may be more cost-effective than financing a brand-new one in the long-term.
Vehicle finance for opticians
Asset finance can also be the most cost-effective way to provide vehicles - specialist Vehicle Finance could help you cut the cost of the vehicles you need.
What business loans are available to buy an optician practice?
Buying an existing practice may require a substantial investment, but it may be possible to arrange a straightforward business loan to help you buy your first practice.
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 the challenges and provides funding tailored to help you make full use of the opportunity.
Buying an optician franchise
Franchising is becoming an important development in the UK high street. An optician franchise will mean a substantial initial fee, a monthly fee and additional expenses for specified equipment and shopfitting. Conventional business lenders, such as banks, may not be able to help, as your business is technically a start-up, lacking a business history.
A Franchise Loan package may provide the solution.
Commercial Mortgage or Lease
Premises in a good location, ideally with parking and public transport nearby, will be a major cost for your optician practice. You may need to borrow for the deposit on a long-term lease. Alternatively, you might want to buy with a Commercial Mortgage. Commercial Property Finance is arranged on an individual basis.
If you're already a tenant and want to own your property, you can explore the potential of becoming an owner through 100% finance to go from tenant to owner. We can help you navigate the route to ownership and raise the capital needed to own your practice and secure a valuable asset for future growth.
This type of lending recognises your status and does not require security. It can provide a relatively high level of funding at a preferential rate of interest, which you may use for any purpose connected with your practice.
Contact us to find out more about whether a Practice Loan could benefit your optician business.
Tax loans help you to spread the cost of your quarterly and annual tax demands into affordable monthly payments.
Working Capital Finance
Working Capital Finance is designed to boost the working capital available to a business. It's often used to provide cash to pay staff and suppliers while business is slow during the early weeks and months of opening a practice or during a period of growth. It is designed to be repaid in the short- to medium-term.
Our finance experts can help solve your working capital needs. We can also help you find solutions if you want a capital injection for your practice - or to find out more about capital release.
Large-scale finance can be vital if you have major plans for your practice, such as acquiring a competitor. Growth finance is a special type of funding designed to fund your growth plans.
Even if you do not have the long trading history and profit record that lenders usually require, we can help you find solutions.
Goodwill Loans, also known as Cash Outs, use the value in your business as the security for a loan, and may provide a sum comparable to your annual turnover. This type of lending is suitable for any purpose inside or outside the business. Many opticians use it to fund investments or property purchases.
If you have a major project, such as acquiring another practice, you may require funding from more than one source. At Rangewell, we are experienced in creating this kind of ‘Jigsaw' funding, which allows us to use our financial expertise to provide the most cost-effective solution for each aspect of your financial plans.
Contact us to discuss how 'jigsaw' funding can provide answers for you.
Whatever your funding need, we've got opticians covered:
What businesses are eligible for a loan?
To be eligible for a business loan for your optical business, your company will need to:
- Be registered in the UK
- Will need to have been operating for over 6 months
- Have a minimum turnover to match lender expectations - which varies based on who you approach.
- Have an owner over the age of 18
- Be a limited company or a sole trader
To find out more about optometry practice loans, speak to Rangewell today.
REAL EXAMPLES OF WHAT WE CAN DO
- Help arrange jigsaw funding for an optician to support a premises purchase
- Find a lender to provide the most competitive commercial mortgage to acquire premises
- Help set up a 100% funding plan for a new opthamologist to buy an existing opticians business
- Help arrange funding for every stage of an optician’s expansion programme
- Find the most effective source of funding to allow an optician to take on a newly qualified ophthalmologist
- Find funding to allow an optician to buy a beachside development in Portugal
Last update: 18 July 2023
Frequently asked questions
Have a question?
Optometry isn't a dying trade. On the contrary, the need for optometrists will be greater than ever in the coming year. This is because the current population of 315 million will grow to almost 350 million by 2025. In addition, the population age of 65 and over will increase 50%, from 12% to 18%.
Practice loans for opticians are a type of financing used explicitly by businesses in the optometry sector. For example, this type of loan can be used to buy expensive optical equipment or fund new staff training.
There are several things a lender will look at when deciding whether to lend.
From a practice point of view, the bank will look at the number below and feel them into the cash flow model. Then, they'll use this model to project how much money you'll make as an owner of the practice you're considering and if you can afford to make the repayments.
Collections - How big is the practice? Are collections growing or shrinking?
Profitability - How much money do you keep aster paying all the expenses of the business.
Hygiene production - What percentage of the patients come for hygiene? What comes from new patients? Who are returning patients?
Your creditworthiness - The majority of the decision to lend money will depend on the economics of the practice; you'll still need a solid credit history. It's not to say a lender won't work with you if you have a bad credit history. It just may be a different process.
The bank will run a credit check, so make sure your credit score is in the best possible way.
The bank will then look to see if you're responsible with money, so they'll look at things like how much debt you have, how much ingoing and outgoings you have, if you've defaulted on any payments, and your monthly credit allocation. They'll be looking to see if you're spending every pound that hits your bank and if you can make monthly payments. They could also ask to see a business plan, bank statements for the past couple of years, and information on your current assets.
When you get the loan, make sure you look at the term, the repayment penalty requirements, and the fees involved.
Yes, you can get a business loan if your business has bad credit. Traditional lenders are likely to not offer this type of lending due to risk, but finance will be available through other sources such a credit brokers.
Speak to Rangewell to discuss financial solutions, practice solutions, and monthly repayments. Rangewell will provide you with everything you need to know to grow your business.
Download Rangewell’s free and detailed guide to business lending
What kinds of business funding are available and which lenders are experienced at providing finance to the opticians sector?
- How can they provide extra funds for you - without reducing funds available for your business?
- Why you must find the right lender to cut costs
- The downsides of borrowing
- Guarantees and security
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