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 cashflow. 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 This might mean extending communal areas, replacing outdated equipment or hiring large numbers of additional staff.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 cashflow 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
- Repay over a flexible term of 1 – 48 months
- Approval and deposit in as little as 48 hours
- Easy application with minimal paperwork
- No hidden fees or early repayment penalties
- Top-ups and repayment holidays as standard
- Interest charged on reducing balance, not the total loan amount
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:
Apply for care home finance
If you’ve been trading for six months, you can apply with Fleximize now by clicking the button below. Subject to passing our basic eligibility criteria, a member of the team will be in touch to guide you through the final steps.
Not ready to apply? Feel free to check out our FAQs page or give us a call on 020 7100 0110. We’d be delighted to answer any questions that you have about our care home finance.