Financial solutions for groups in the care sector
GET A PERSONALISED QUOTE
Designed For Your Group
- Payments geared to your turnover
- Adverse Credit – no problem
- No Income Proof Required
- Repayment and interest-only available
Finance For Property
- Terms up to 20 years
- £50,000 – No Maximum
- Rates from 2% over base rate
- Up to 80% Loan to Value available
- Answers for all types of challenges
- Solutions tailored to your needs
- Arrangements tailored to your circumstances
- Assets, cashflow, growth capital
The caring professions must face commercial realities. Profit must be made to keep staff paid and services open. Expanding a group may mean economies of scale - but it will require a major investment
Consolidation and expansion are important factors in the care sector. Old peoples homes, nursing homes and sheltered accommodation are often operated by groups, which can provide resources to provide the highest standards while enjoying economies of scale.
Expanding a group - by acquiring an established facility or by setting up a new home or service will demand professional skills and organisation, but key to success will be finding the most cost-effective funding.
At Rangewell, we have experts in funding for the care sector. We understand the challenges involved and the solutions.
Your funding needs
You will need solutions to:
- Buy an existing facility or business group
- Set up a new facility
- Acquire equipment and assets
- Provide working capital
- Support your cashflow
- Finance growth
- Deal with tax
- Deal with problems
Buy an existing facility or business group
Buying an existing facility or an existing operating group has an important advantage in that it will have staff and, if appropriate, residents already in place - and can generate predictable revenue from day one.
Lenders may be sympathetic. They are usually happier lending to acquire an established business which has already demonstrated viability with positive accounts over previous years.
A very large scale of finance will be required, but at Rangewell, we frequently find funding solutions in the £millions or even £tens of millions level. Lending at this scale must be individually arranged, but solutions are frequently based around lending secured on property or a Commercial Mortgage.
Set up a new facility
Creating a new facility such as a residential home will also require considerable investment and your first consideration is going to be finding suitable premises.
Remember, you will need 'change of use' planning permission from the local authority to turn a private residence into a care home.
Commercial mortgages can help you spread the cost of acquiring a suitable property over 20 years or more. Setting up a care home may involve many other expenses, but with property being looked on positively by most lenders, as an existing care business it may be relatively easy to secure the mortgage you need.
Contact us about Commercial Mortgages.
Care Home Equipment
Your new care home will have a range of equipment needs.
Asset Finance lets you spread the cost of the equipment - or assets - you need. There are several types of Asset Finance:
Hire Purchase allows you to hire assets until you have paid for them. HP agreements generally last between 12 and 72 months and require a 10-20% deposit plus fixed monthly instalments.
Leasing operates very much like a rental agreement, with a monthly charge to use the asset. Find out more about Asset Funding solutions.
Staffing for your care home
It is up to the owners of homes to make sure that unsuitable and unskilled workers are not employed. All care homes should be staffed by well-trained, well-supported people who care about and want to work in this setting. It is now recognised as highly desirable that staff working in care roles should be required to register with an independent body that oversees standards within the profession.
Residential staff frequently have to deal with incredibly difficult and challenging situations. They may be subject to physical violence, verbal abuse and may need to act quickly to prevent self-harm, assaults, or damage to property. Care homes are currently competing with other low-paid employers for untrained low paid staff, which may offer less stressful employment and have more regular hours. Where staff are not trained, supported or valued there are high levels of sickness, absence, staff turnover and difficulties with recruitment.
The costs of selecting and training staff who are able to provide a high-quality service may be high. It will increase the cost of running your home and may lead to difficulties with cashflow.
Cashflow support and Working Capital Finance can provide cash to deal with large costs and overheads, and keep your cash flow positive. It is usually designed to be repaid in the short- to medium-term, once the problem has been dealt with.
Tax Loans for care groups
A large VAT or tax demand can cause problems with your cash flow, particularly when it falls at the same time as other costs. Tax Loans help you spread the cost of your tax demands into affordable monthly payments. They mean that your care home business can have:
- Better control of cash flow
- Fixed monthly payments
- Quick and simple to arrange
It can also ensure that you avoid late payment issues with HMRC, with the potential penalties and reputational damage that can follow.
See how a Tax Loan can mean better control of cash flow for care homes.
Dealing with problems
To ensure care providers are meeting the required standards, the CQC inspects many types of care facilities at regular intervals. It set high standards. It bases its checks on five key service areas of safety, effectiveness, leadership, standard of care and responsiveness to residents’ needs.
Every CQC inspection results in one of four possible ratings: Outstanding, Good, Needs Improvement or, in the worst-case scenario, Inadequate.
A poor result in an inspection may have a considerable financial impact and require substantial investment in training or facilities to overcome. At Rangewell, we know the solutions which can help deal with challenges.
Real examples of what we can do
Help an experienced group nurse take over an existing children’s home
Provide funding for an established home operator to buy a second property
Find the most competitive loan to let a partnership convert a large house into a residential facility
Source a commercial mortgage to allow a group to buy and convert premises
Help arrange Jigsaw Funding to fund the takeover of a smaller group
How we help you capitalise your group
Growing your group business may present a number of funding needs.
At Rangewell, we aim to provide an individual approach and the solutions you need. We use our expertise to find the most competitive deal for all types of finance, including Professional Loans, Unsecured and Secured Loans. As well as conventional loan products, we can help you find Alternative Funding, using new loan providers and innovative funding solutions.
Whether your care home plans need a simple quick solution, or a complicated ‘Jigsaw’ funding plan made up of a combination of products for the long term, we can work with you to find the answers.
Call us now to get our care sector funding experts working for you.
Discover your range of finance. Every type of finance for every type of business.
Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.Find Funding
Helping you build your profits
Lending tailored to your plansAt Rangewell we can help you find the most appropriate finance for any funding need.
Work with experts who understand your finance needsAt Rangewell, our team includes experts in care, medical and property finance.
Providing solutions for equipmentWhether you need clinical equipment, IT or vehicles, we can provide the funding you need.
Reducing riskSome funding can present a risk to your business - we can minimise risk - with solutions like asset funding, secured purely by the assets you are financing.
Long-term fundingYour group will have long-term funding needs. Rangewell can work with you to deliver them.
Specialist lendersSome asset funding providers specialise in particular sectors. At Rangewell, we know the most appropriate lenders for the care sector.
Download Rangewell’s free and detailed guide to Finance for your Care Home
What types of finance are available to Care Homes and business providing residential care?
What is Asset Finance - and how it gives you a business advantage
Can finance help me increase the number of care home places my property offers?
Why not all providers are equal - finding the one that’s right for you
How we can help you pay less than 0%
The downsides to finance - and how to avoid them
How to arrange finance - What paperwork do you need?
What type of information will I need to provide with an application (eg, company numbers, registered office details, VAT numbers, accounts)?
Are all lenders authorised and regulated by the Financial Conduct Authority?
How do I go about arranging Care Home finance?
Key terms explained
More information available in our care ecosystem for businesses in the care and support sector/care model
Getting the right funding arrangement is essentialThere are many forms of business finance available. Getting the most appropriate type for your particular needs is essential to avoid excessive costs.
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. This could present a problem if you change your business plans.
Our service is...
ImpartialTransparent and independent, treating all lenders equally, finding the best deals.
In-depthEvery type of finance for every type of business from the entire market - over 300 lenders.
In-personSpecialist Finance Experts support you every step of the way.
FreeWe make no charge of any kind when we help you find the loan you need.