Funding solutions for your rehabilitation services business

Psychiatric, psychosocial and medical rehabilitation can cover a wide range of tasks, from helping those affected with housing and employment to therapy, medication management and supporting the activities of daily living. There is a growing demand for rehabilitation services - following a surgical procedure, after an accident or during intensive treatment. 

Rehabilitation can include:

• Physical therapy
• Occupational therapy
• Speech therapy
• Social therapy

Setting up a business or organisation to provide rehabilitation services involves orchestrating a wide range of professional skills and resources for the benefit of the client. These business services may be funded by insurance companies, local and medical authorities and by clients themselves.

Services may range from providing residential training, drop-in centres and group sessions, and for patients who cannot leave their homes, individual consultations and therapy that brings the treatment to them.

Setting up as home-based therapist, or building up a larger agency that provides home healthcare or a broader range of therapeutic services requires funding, and at Rangewell we are ready to provide the funding you need.

The funding you need for your rehabilitation business

The first step in securing the funding you need is simply in understanding the different types of finance available.

They include:

• Setting up a new rehabilitation business
• Buying into an existing rehabilitation business
• Acquiring premises
• Acquiring equipment and assets
• Provide working capital
• Cashflow Finance
• Financing growth 
• Dealing with tax
• Dealing with problems

 Setting up a new rehabilitation business

If you want to set up a new rehabilitation business, you will have a number of funding needs to cover. Your skills and experience are your main asset, but you may need a range of equipment depending on the type of client you will be working with. Your main cost may actually be working capital - covering the time that it takes to build up a list of profitable clients and achieving enough momentum to generate business through referrals could take years.

A serviced office will require an upfront payment but may come complete with most of the basic essentials. Renting a small, independent office will mean binging everything you need from a desk and chair to a computer. Your electricity and business rates will also still have to be paid for.

An overdraft used to be a commonly used and versatile solution for fledgeling businesses, but since the credit crunch, these may also be increasingly difficult to arrange. In fact, your bank may not be able to lend if you’re starting up a new business venture, even if you are a qualified professional.

At Rangewell we understand the challenges you will face - and know the lenders who can support new business ventures like yours. Find out more about new business funding for rehabilitation businesses.

Buying into an existing rehabilitation business

As a shortcut into a professional business, you might prefer to buy into an existing rehabilitation agency or service as a partner, or even buy it outright. The costs involved may depend on the turnover of the business as it stands now and its potential in the future. 

If you already own an established business, you might want to consider acquisitions, mergers or expansion. However, the funding required may be substantial.

We can help you secure a number of solutions to let you buy into an established practice, which can reflect your professional status with highly competitive rates.

These include funding for partner Buy-ins and Buyouts, which will let you become a partner or acquire an entire business, and business acquisition funding, which often takes to the form of a Secured Loan, with security provided by an existing business or your home.

We can also provide solutions to let you selectively acquire assets - such as the goodwill and client list - from an existing rehabilitation business which may be closing down for reasons such as retirement.

Funding premises for rehabilitation businesses

Premises represent a major investment for any business. Naturally, the actual cost of renting even a small office will depend on your location, and the square footage you require - it may be best to take on more space than you need to allow for expansion in the future. Remember, there may be service charges and business rates on top of the bare lease, plus you may need upfront funding in order to secure the agreement - we can help provide a number of solutions to help.

If you want to set up facilities such as a treatment room or space for group therapy, you will need an even larger budget.

However, renting inevitably means ongoing costs and puts your practice at risk of rent increases. Buying with the help of a Commercial Mortgage could actually decrease your monthly outgoings and provide a valuable asset for the future. Of course, all Commercial Property Finance is always arranged on an individual basis - but we can help provide solutions which will let you buy the premises you already operate from, or even buy a new freehold property to use as the centre of your rehabilitation business.

Buying premises may be a sound decision, but you may need to make an additional investment to bring premises up to the standard you require, or to install facilities such as a treatment room.

We can provide solutions to fund refurbishments, from light decoration to major extensions and building work.

Funding for rehabilitation equipment

Your rehabilitation business will need equipment. You will need benches and equipment for physical therapy, seating and tables for therapeutic exercises and training, as well as an IT set-up, with computers and printers

The list of equipment you need will not stop there. You will also need to furnish your office, and you may need to provide vehicles.

Asset Funding may provide the most cost-effective solution for most equipment purchases, and there are several types of Asset Funding to consider. You may prefer Hire Purchase for items that you will wish to keep, such as desks, chairs and document storage - you simply spread the cost of buying over up to 5 years.

Leasing may be more appropriate for items such as your IT equipment, as it will allow you to update to use the latest and most reliable technology whenever you need it. Contract Hire might also help you reduce the costs of providing commercial vehicles in your business.

At Rangewell, our experts can help you find the most appropriate Asset Funding solutions for your rehabilitation business, with both HP and lease agreements, together with business Contract Hire for your vehicles.

We also have specialised funding for your IT equipment.

Cashflow Finance for rehabilitation businesses 

Cashflow is a challenge for any business, especially during the early stages.

If you are faced with a high number of large costs simultaneously, you could find that your cashflow has become negative. Cashflow support and Working Capital Finance can help deal with large costs and overheads, and keep your cashflow positive. It is usually designed to be repaid in the short- to medium-term, once the cashflow shortfall itself has been dealt with. 

If you are dealing with local authority payments as part of your income stream, you may face problems if you work with a local authority which is slow in paying. Invoice Finance - which will allow a lender to make a cash advance available to your business as soon as you issue an invoice for services completed - could provide a cashflow lifeline in these cases.

Find out more about Cashflow Finance solutions for rehabilitation businesses.

Insurance for your rehabilitation business

You and your staff will be directly responsible for your clients’ wellbeing. Your staff will be coming into close contact with them in their homes and may take care of administering medications and treatments. The possibilities for serious injury or damage - or worse - may be high, as will the penalties if you or your staff are found to be responsible.

It means that your business must have insurance cover against a number of potential liabilities and legal claims.

As a minimum you will need need to arrange:

• Employers’ liability insurance - to protect your business against claims from staff who are injured or harmed at work. Lifting elderly or immobile patients is a serious risk for carers, and can result in back injuries which may be judged to be your responsibility
• Public liability insurance - to deal with any claims which might be made by clients and their families for any injury or damage. Accidents which result in damage within the client's home may require costly repairs and replacements
• Professional indemnity insurance - to protect your business if you make decisions that result in loss, damage or harm
• Medical malpractice cover - and treatments liability insurance - to deal with issues relating to giving medication, treatment and aftercare

Rather than buying these covers separately, you may be able to find an insurance package specifically tailored for your business from a broker familiar with the sector. While this can provide a full range of protection and mean reduced costs, the premium is still likely to be high - at Rangewell, we can find solutions which will let you spread the cost of the cover you need.

Tax Loans for your rehabilitation business

Tax is inevitable for any business, but large quarterly VAT liability or annual tax demand can cause real problems with cash flow if they fall at the same time as other costs. Tax Loans can help you spread the cost of any tax demands into affordable monthly payments. 

They can mean:

• Better control of cash flow
• Fixed monthly payments
• Quick and simple to arrange
• Avoids issues with HMRC, potential penalties and professional liabilities

Find out how a Tax Loan can result in better control of your business' cashflow with fixed monthly payments.

Dealing with business problems

Even the best-run business can run into financial difficulties and the loss of clients or a local authority contract could mean money stops coming in. Problems with getting paid can quickly become a cashflow crisis, and discovering that you cannot meet your immediate financial commitments could lead to insolvency.

At Rangewell, we know the solutions to these types of problem. We can even provide funding solutions if you have a damaged credit history or CCjs.

Find out more about finance for rehabilitation businesses facing financial difficulties.

How we help you capitalise your rehabilitation business

Getting the most appropriate solution for your funding needs takes a thorough understanding both of the lending market and the products available on it.

 At Rangewell have the expertise you need. We know the lenders who can offer the most competitive rates for the sector for all types of finance, including Professional Loans, Unsecured and Secured Loans. As well as conventional loan products, we can also help you find Alternative Funding, using the new breed of loan providers who offer innovative funding solutions.

So whether you have a straightforward finance need, or you require something more complicated like ‘Jigsaw’ funding made up of a combination of products, we can work with you to find the answers that are right for you, your rehabilitation business and your plans for the future.