Care homes play an incredibly important role in the UK, providing essential care to people who are no longer able to look after themselves in their home. While it can be a difficult decision for families to move their loved ones into a nursing or residential care home, it is generally taken in the best interests of the person concerned, whether to improve their quality of life or manage a longstanding medical condition.
With more than 430,000 people in the UK currently living in care homes, the care sector is both large and competitive. It’s also an industry that demands near-perfect service from every single business operating in it, creating an additional level of pressure that companies in other sectors may not experience. For that reason, anyone looking to establish their own care home business should give it plenty of consideration beforehand.
Financing a care home
The biggest startup cost for a prospective care home business is the acquisition of suitable premises. This will either be an existing care home, or a commercial or residential property that can be converted into care home usage. The latter can sometimes require more investment, especially if the property needs significant renovation work.
However, finding the funds to establish a care home is just the first step. Once your business has been trading for six months or longer, you’ll be faced with the challenge of maintaining a healthy cash flow. On top of monthly mortgage payments, there’ll be wages to pay, utility bills to settle and inventory in need of replenishing, plus other regular outgoings.
To ensure your care home adheres to ever-changing government standards, while continuing to satisfy the expectations of guests and their families, regular improvements will also be necessary. This might mean extending communal areas, replacing outdated equipment or hiring large numbers of additional staff. Borrowing the capital to pay for such expenses can protect a care home’s cash flow without impeding its growth.
The business finance market has grown substantially in recent years, driven largely by the banks’ post-recession retreat from SME lending. As a result, small businesses can find it difficult to source funding from a bank that supported them previously – but there are plenty of alternatives.
Fleximize offers a fast, flexible form of care home finance, which is designed to support the growth of your business. Not only can we fund a company in days, as opposed to months, but we’ll tailor the finance to the unique needs of your care home. Here are the highlights:
- Business loans of £5,000 – £500,000
- Unsecured and secured borrowing options
- Flexible repayment terms of 3 – 48 months
- Speedy application with minimal paperwork
- Approval and deposit in as little as 24 hours
- No hidden fees or early-repayment penalties
- Interest charged on a reducing balance, not the total loan amount
- Repayment holidays and top-ups available with all loans
- Exclusive discounts on industry-leading business services
Numerous care homes have borrowed from Fleximize, using the funds to secure NHS contracts and expand their premises. The most common reasons for borrowing are as follows:
How to apply for care home finance with Fleximize
If your business has been trading for at least six months, you can apply online now and get a decision in as little as 24 hours.
Use our secure online form to apply for funding in less than five minutes. You’ll find out if you’ve passed our initial checks instantly. If you do, we’ll ask you to provide a few documents – but nothing too demanding.
We’ll pair you with a dedicated relationship manager who’ll take things from there and aim to give you a final decision within 24 hours. If we say yes, we’ll send your funds immediately – usually landing in your account on the same day.
If you’d like more information about our funding solutions, check our FAQs or give us a call and speak to one of our experienced relationship managers.