Healthcare finance: What do you need to know?

What is healthcare finance?

Healthcare finance enables medical practices and healthcare organisations to invest in new equipment, technology, and facilities, while spreading the cost over time. With healthcare finance, multiple funding solutions are available, commercial mortgages for the purchase of a new care home or other premises, hire purchase agreements, asset refinance, and finance leases.

At MAF Finance Group, our dedicated team of healthcare finance specialists can arrange tailored funding for a wide range of needs across the medical and healthcare sectors.

As part of our healthcare finance offering, we can support funding for a variety of assets, such as care homes, pharmacies, medical equipment, nurseries, dental practices, GP surgeries, and veterinary practices.

What type of finance is available with Healthcare finance?

Commercial mortgage: A commercial mortgage is a solution that enables businesses to purchase or refinance a property. There are two main types of commercial mortgages, an owner-occupier mortgage, where the property is purchased and will be used by the business for operations, or a commercial investment mortgage, where the property is purchased as an investment.

Asset refinance: This type of finance uses the value held in assets on your balance sheet as funding. Throughout the refinance period, you still retain full use of the asset for your operations. With the funding, your business can act upon growth objectives, purchase new medical equipment, cover daily business expenses, and restructure existing finance arrangements.

Hire purchase: This method of funding enables a business to purchase an asset without making a significant payment upfront. Once you make the deposit, a series of monthly payments occur over a pre-determined term. Once the payments have been made, you take ownership of the asset. As part of hire purchase, a VAT deferral allows you to defer VAT payments for 3 months.

Finance lease: This funding type allows you to use an asset without taking ownership. With a finance lease, you make monthly payments throughout the agreement, as well as being responsible for asset maintenance. At the end of the agreement, you can choose to hand back the asset to the owner, apply for an extension, or request that the asset is sold for a fair value.

What assets can be financed through Healthcare finance?

Care Home Finance: If you’re planning to purchase a property for your care home business, we can arrange a tailored commercial mortgage to suit your needs. Our specialist healthcare finance team supports operators with care home purchases, refinancing, or portfolio growth.

Pharmacy Finance: Our healthcare finance experts can help you access the right funding solution for buying a pharmacy or expanding your existing group.

Medical Equipment Finance: Operating a medical practice, surgery, or care home involves significant equipment costs. From X-ray systems and ECG machines to defibrillators, our finance options make it easier to spread the cost and keep your facilities fully equipped.

Nursery Care Finance: Our experienced healthcare finance division works with specialist lenders to provide funding for nursery acquisitions, new site development, or portfolio expansion.

Dental Practice Finance: Purchasing or expanding a dental practice is a major commitment. Lenders will consider your professional background, sector experience, and deposit amount. Our healthcare finance specialists have extensive experience in arranging funding for practices of all sizes.

GP Surgery Finance: The healthcare finance team at MAF Finance Group can assist with funding a range of assets for GP surgeries, from building improvements and technology upgrades to equipment and practice expansion.

Veterinary Practice Finance: Whether you’re starting up, acquiring, or growing a veterinary practice, our healthcare finance team can help secure funding to meet your business goals and ensure your practice continues to thrive.

How do I secure Healthcare finance?

Applicants for healthcare finance must provide a detailed business plan, explaining the purpose of the finance, certified accounts from the previous 3-5 years, and last 6 months banks statements.

To improve your chances of receiving approval, demonstrate revenue growth, as well as a track record of consistent cash flow. The lender wants to ensure that your business can repay the finance without struggle.

Benefits of Healthcare finance

• Retain cash flow
• Tailored finance agreements
• Divide the cost of a purchase over a manageable period
• Wide range of funding options available
• Supports start-ups and established practices
• Take on growth objectives
• Purchase a new premises
• Modernise existing facilities

Applying for Healthcare finance

MAF Finance Group can compare offerings from an array of banks and alternative funders to ensure you receive a solution tailored to your needs.

To receive more information or to get a quote, fill out the form below. If you would like to speak to a member of our team on the phone, call us on 0115 958 6872. Alternatively, email us at [email protected].