Funding For Nursing and Care Homes

Over the last few years the nursing and care homes sector has bucked the trend as operators have generally found it easier than business owners in other industries to secure funding from the banks. Even so, the appetite to lend continues to vary from bank to bank and those that are keen to remain involved in the sector each have their own strict criteria for lending.

Our own experience of working on funding proposals with clients has shown that there are certain things which most potential funders will required. These include:

Financial Information

Lenders will require detailed financial information which accurately demonstrates the performance of your business. At Greenhalgh we produce either monthly or quarterly management accounts information for many of our nursing and care home clients precisely for this purpose. Our profit and loss, balance sheet and cash flows measured against short and medium-term forecasts, so that trends can be assessed, mostly importantly of all, cash flows can be closely monitored.

Clean Bank Statements

If you have had one or more cheques returned within the last six months, be prepared to offer a full explanation to potential funders. At least one of the major banks is unwilling to take on customers in these circumstances.

Management Team CVs

As the banks have become increasingly interested in the who actually runs the business, rather than just who owns it, you should be prepared to submit the CVs of not only the potential owners of the business but also of the proposed management team.

Details of Your Home’s COC Rating

Despite the recent changes, the banks still place a great deal of importance on this rating as an indication of how well the business is run and to highlight any issues there may be at a particular home.

Property Valuations

Banks place a huge emphasis on valuations and they each have a panel of recognised valuers. They do vary from bank to bank and we can advise you on who best to use, dependent on your circumstances.

A Business Plan

For existing operations in the sector a business plan is not always necessary; it often depends on the size of the business and the funding requirements. However, a business plan will be necessary for ‘new to sector’ clients, to whom only a select few funders are willing to consider lending. We can help you put together a business plan, should one be required.

If you are looking to raise funds for your nursing or care home business, our healthcare team are able to offer a free initial consultation to discuss your requirements.