Whether you have plans to open a new medical practice, or are already running a business in the healthcare sector, forecasting for the future is essential. Particularly when starting a practice, there are significant upfront costs to consider in terms of acquiring property and equipment, paying staff and covering overheads and other operating expenses. Whichever stage your medical business is at, growth and development typically require readily available capital.
Raising finance makes growth possible for many healthcare ventures. However, the process can seem arduous and risky, particularly if you are concentrating on running a successful business simultaneously. Choosing the right type of finance and the best lender to suit your funding needs can be a daunting prospect. At Business Finance Solutions (UK) Ltd, we demystify the process and support you through the application. We have the expertise to understand your funding requirements and strive to connect you with finance products that best suit your business needs.
How To Apply For Finance?
Once you have decided on the finance product you require and have found a suitable lender, the lender will need to conduct due diligence on your business to understand who they are lending to. You will need to provide context in the form of documentation, which proves criteria such as past performance, current and future revenue streams and any existing finance arrangements. From the information you provide, the lender will make an assessment as to the terms on which it can lend you money. Depending on the terms and complexity of the financing arrangement, it is advisable to seek out specialist legal advice.
Which Documents Do I Need To Disclose?
In a typical financing transaction, you can expect to disclose the following documents as a minimum:
• A business plan, which demonstrates a sound profit forecast.
• Complete details of your NHS contracts, together with performance indicators. Lenders will assess these details to value the goodwill in your business.
• To evidence consistent earnings, you will need to submit director or partner payslips from the last three months, or, if you are a contractor, your latest P60 with six months of personal bank statements.
• A statement setting out the assets and liabilities of your business.
• Business accounts from the past three years (if available).
• Management figures.
• Business bank statements from the past six months.
Why Are These Documents Important?
As an asset-rich industry, the healthcare sector relies heavily on finance. It can be competitive to secure lending from reputable lenders. Consequently, providing accurate and informative documents is an essential element of a successful application. Being able to prove a history of healthy and ordered accounts is crucial to achieving a positive decision. The lender is taking a risk on the profitability of your business and wants assurance that things are being run sensibly. Setting the scene past, present and future is likely to increase your chances of securing funding.
With over 100 years’ combined experience, our team has a diverse and in-depth knowledge of the business funding process. With an extensive portfolio of healthcare contacts and investors, we can connect you with reliable and trusted lenders. With access to experienced credit policy underwriters, we are well placed to assist you in preparing and presenting a robust funding application to maximise your chances of approval. Get in touch today to find out more.
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