Finance for Podiatrists
Growing your podiatry clinic with the help of lenders who know your sector
Working in private practice can be the most rewarding way to use your own podiatry - or chiropody - qualification.
Running your own practice will mean all the responsibilities and challenges of running a business, but it could mean a turnover of £250,000 or more if you can build your practice into a clinic with junior practitioners.
But to achieve this level of income, your practice must be able to call on a wide range of finance. Whether you are starting up from scratch, taking over an existing practice or growing the practice you have already set up, you will need funding. Paying for premises, staff, equipment, bringing supplies and providing for everyday running costs will all require a cost effective source of cash.
You may need to capitalise your business with more than £50,000 worth of investment in the first year alone.
At Rangewell, we work with podiatrists across the UK. We understand the challenges involved, and we can help you find the most appropriate funding options to help you find the solutions to them.
Funding options for podiatrists
If you are working in private practice or considering setting up your own clinic, we can help you find the right type of funding option to:
- Buying an existing podiatry practice
- Set up a new podiatry practice
- Acquire premises for your clinic
- Acquire equipment and assets
- Provide working capital and finance growth
- Deal with tax
Buying a podiatry practice
Buying an existing practice can be a simple way to launch your podiatry business. It could mean an established patient list, goodwill, and turnover. Having established accounts will make it easier for a lender to put a value on the business as a basis for their lending decision. The size and value of the patient base, the premises and equipment, and the value of any NHS contract need to be taken into consideration.
The purchase price will reflect this, and a moderately successful practice in the south of England could easily change hands for upwards of £250,000. This is, of course, a large sum for most people to find, but by spreading finance over 20 years it can be a practical proposition to borrow that kind of sum.
Secured Loans are often used to borrow large sums upwards of £250,000, and so may be more suitable for the sums involved in a business purchase. They are ‘secured’ because the lender will require security in case you cannot pay the loan back. This could be your home or your business premises.
You can have longer to repay than other types of loans. Terms of up to 20 years are common. You can also enjoy lower interest rates than with other types of lending, meaning monthly repayments can be lower and easier to fit in with your cashflow.
A loan suitable for buying a practice will require considerable preparation, so it is important to know the facts early. Find out more about Secured Loans and how they could to let you buy a podiatry practice.
Setting up a podiatry practice
Setting up your own podiatry clinic could mean less initial outlay. Unless you want to operate a mobile service or have suitable space in your own home, there will be premises to pay for.
There will also be the cost of equipment, and of operating while you build up a patient list. Simply opening the door for business will not bring in patients. You will need to budget to advertise your presence and to keep afloat while you build a patient list. You need to invest in marketing, establishing a local presence and setting up a website.
You may need to borrow working capital to keep your practice running until it becomes profitable, which could mean having months of operating expenses to cover.
Finding funding to start up any business can be a challenge in the current climate, but we know lenders who may be able to help.
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 Buy Out finance recognises the challenges and provides funding tailored to help you make full use of the opportunity.
Buying a franchise
You might want to consider a podiatry franchise. It will mean a substantial initial fee, and an ongoing monthly subscription. 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.
Could alternative business funding help you start up your podiatry practice?
Crowdfunding has become an alternative funding route for business startups, but is unlikely to be appropriate for a podiatry practice. Fortunately, the new generation of lenders have a flexible approach and can help you find the most appropriate funding for your needs.
Find out more about our approach to alternative funding here.
Funding for your podiatry equipment
Your equipment needs may include:
- Treatment Chairs
- X ray equipment
- Ultrasound equipment
- Equipment sterilizers
- IT equipment – from handheld tablets to a centralised booking and billing system
At Rangewell we have found that Asset Funding can provide the most cost-effective solutions for most kinds of equipment you will use. Leasing and Hire Purchase let you spread the cost of the equipment you need allowing for fixed monthly repayments enabling you to budget with confidence whilst enhancing your cash flow.
If you need equipment that you want to go on giving service for years, Hire Purchase can provide the simple solution. You pay a deposit plus monthly instalments over a fixed term, between 12 and 72 months, after which the equipment becomes yours. Payments are fixed, making it easy to plan ahead, and to arrange an agreement that is tailored to your monthly turnover and budget.
If you want to use the latest equipment without the responsibility of owning it, leasing will give you the freedom and flexibility you need. There is usually no upfront cost to find, meaning that you can bring the latest equipment into your surgery without delay.
Finance Leases can make higher cost items, such as digital x-ray systems, more affordable by spreading the cost across their economic life. At the end of the agreement, the asset may either become yours or be returned to the lease company.
Operating Leases work in a similar way to a rental agreement. You pay a monthly rental charge to use the asset, which will cover all the costs such as maintenance and repairs. Keeping the equipment functioning efficiently remains the leasing company’s responsibility. It means an Operating Lease ideal for sophisticated technical apparatus which has a limited life, or which you may want to replace when new technology becomes available – helping you keep ahead of your competitors, and letting you offer your patients the latest treatments.
Contract Hire can be the most cost-effective asset finance solution to provide a business vehicle, which could be essential if you want to run a mobile service
New or used?
Good quality used equipment can be a sound investment, especially if you are setting up a new practice. At Rangewell we can help you spread the cost of used as well as new assets with Asset Finance. Find out more here.
Funding for your premises
Premises in a good location, ideally with parking and public transport nearby could be a valuable asset for your business.
You will need a minimum of around 50 square ft for each treatment room, and probably twice that for a waiting room. Factor in space for storage, reception and circulation, and you will have a substantial suite to pay for. More space than you need might be an investment for the future. Another room for a junior partner could let you grow your patient list, and help increase turnover.
You may need to help to fund the deposit on a long term lease. Alternatively, you might want to consider a Commercial Mortgage.
Commercial Property Finance is arranged on an individual basis. Get our help finding the most competitive lender.
Funding to refurbish your premises
You need to present a stylish and modern interior to bring in customers. Find out more about finance for refurbishment.
Running and growing your podiatry practice
Your existing practice may be running well and attracting patients, but you may have ongoing costs that you need to deal with. There are many other reasons to seek funding. You may want to refurbish your premises, for example, or buy smaller pieces of equipment. You might want to fund growth, taking on staff or setting u a treatment room for a junior practitioner. You might also need to deal with more pressing costs. Cashflow may be below expectations, especially in the early stages of a new podiatry practice.
At Rangewell, we know all the solutions available and we can work with you to find the finance that is most appropriate for your needs. Solutions include:
Unsecured business loans operate much like a personal loan. They are suitable for smaller sums, frequently up to much as £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.
Practice Loans are a special type of unsecured loan that recognises your professional status, and may be able to provide preferential rates, reducing the cost of borrowing.
This type of lending can provide a relatively high level of funding, which you may use for any purpose connected with your practice. Extending or refurbishing your practice, taking on staff, training or acquiring a competitor, or bringing in facilities to allow you to offer new treatments, such as cosmetic work can all be made easier.
Practice Loans can be used for many purposes including:
- Capital injection
- Buy ins
- Cashflow support
Tax is an issue for every business. A large quarterly VAT or annual tax demand can cause problems with your cashflow, particularly when it falls at the same time as other costs.
Tax Loans help you to spread the cost of your tax demands into affordable monthly payments, helping ensure that your business does not have to go through a cashflow drought.
Benefits of a Tax Loan:
- Better control of cash flow
- Fixed monthly payments
- Quick and simple to arrange
- Avoids issues with HMRC and potential penalties
Revolving Credit Facilities
Revolving Credit Facilities bring a line of credit, with an agreed limit that you can call on when you need it. You only pay for the money you take out, so it can be a cost-effective way to raise funds if you need them.
Merchant Cash Advance
Merchant Cash Advances may be ideal if your practice takes payments through a card terminal or PDQ machine. The lender works with your payment company, and can advance you the equivalent of up to one month’s turnover. This advance is repaid automatically by deducting a proportion of the payment every time a customer uses a card to pay.
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 a new practice, or during a period of growth. It is usually designed to be repaid in the short- to medium-term, once the practice is fully on its feet.
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. Lenders may require an established trading history and record of profits, but it may be possible to arrange Growth Finance based on your profit projections, rather than on your trading history.
REAL EXAMPLES OF WHAT WE CAN DO
Find the most competitive loan to let a small practice to acquire a lease on an existing surgery
Arrange a cash advance using a Merchant Capital arrangement
Source funding to help a podiatrist acquire a vehicle to offer a mobile service covering a wide area
Find the most competitive finance to allow a new practice to a full range of equipment
Help a podiatrist arrange ‘jigsaw’ funding to allow her to acquire an existing practice
Goodwill Loans to help you realise the value in your practice
Goodwill Loans, also known as Cash Outs, use the value you have built up in your practice as the security for a loan.
They can often provide a sum comparable to your annual turnover. This type of lending is suitable for any purpose inside or outside the business. Many podiatrists use it to fund investments or property purchases.
Why you need Rangewell to find finance for your practice
As a podiatrist, your professional status can help you secure attractive rates for the funding you need, especially if you have NHS contracts, or a full patient book.
But not all lenders will offer the most competitive terms, and finding the most competitive deal across the entire market takes time and expertise. We know the lenders who can offer 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.
Whether you have a straightforward, small scale funding need, or require a complicated ‘Jigsaw’ funding plan made up of a combination of financial products, we can work with you to find the answers
Call us now to get our experts working for you.
Helping you build your profits
Lending tailored to your needsAt Rangewell we use our expertise to help you find the most appropriate finance for any funding need your practice faces.
Funding scaled to your practiceFunding solutions are available for your practice whatever its size, and whether you need individual items or a complete surgery costing thousands of pounds.
Helping you acquire premisesYou need premises in the right location and with the right combination of space and facilities for your patients.
Reducing risk with Asset FundingIf your practice was to become unable to make the payments on equipment funding, the lender could simply repossess the equipment to cover their loss. No other assets are at risk.
Helping you provide the best treatmentYou need the best equipment to provide the best treatment for your patients. We can help you find finance for refurbishment, equipment and whatever else you need to support your skills.
Specialist lendersSome Asset Funding providers specialise in particular sectors. At Rangewell, we can help you find the most appropriate lenders for your podiatry practice.
Download Rangewell’s free and detailed guide to Finance for Podiatrists
What types of finance are there - which do you need?
Why not all providers are equal - finding the one that’s right for you
How we can provide an additional income stream
The downsides to finance - and how to avoid them
How to arrange finance - what paperwork do you need?
Key terms 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 podiatry clinic 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.
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.