Short-Term Funding for Care Homes
Rising social care costs, new regulations and an aging population is increasingly putting pressure on the UK care homes.
With the number of people in the UK over 85 set to double over the next 25 years, more care homes are needed. Independent care homes and in-home care service providers will play an important part in providing a safe and comfortable environment for our elderly.
In the UK there are currently 11,300 care homes with around 95% of the beds provided by the independent sector. The industry, including service businesses and suppliers, turns over £15.9 billion a year in the UK.
Investments are needed to support the growth of businesses that are providing services to care for our elderly. With the help of a short-term business loan, Spotcap has supported some of these, including one of the UK’s largest training providers for home care professionals.
Common needs we have seen include:
· Bridging a cash flow gap
· Refurbishing premises to accommodate growth
· Acquiring new facilities
· Upgrading equipment
What type of short-term business funding should care homes consider?
Short-term loans are an important part of the financing mix and are used by businesses to grow. The good news is that there are many options available to support businesses in the care industry. There are both secured and unsecured lenders on the market that offer business loans to deal with costs related to growth and working capital.
A lot of our clients use our short-term loans to upgrade equipment and pay suppliers during slow stages or extreme growth periods when cash flow might be stretched.
Unsecured loans can be repaid in monthly or quarterly instalments over an agreed term, usually under five years. Modern lenders can provide fast unsecured lending – some with and some without a personal guarantee.
You usually can’t borrow more than one month’s turnover without security, and most unsecured loans providers will lend up to £250,000. That can go along way in the growth of a business.
We have an important responsibility to care of those in need, and to do so we must support the care home sector. At Spotcap we look forward to offering our support.
Should you have any questions or want to discuss your funding needs, please stop by Spotcap’s booth D653 at the Dementia Care & Nursing Home Expo.
To view the comparison table (above image), download Spotcap's funding guide.