Many people assume that private healthcare providers cover their costs with the money they receive from their patients or insurance companies. However, while that may be true for established businesses, it's not usually the case for start-ups – after all, you can't treat patients until you have the premises, equipment, and staff you need. So how can you raise enough money to get a private healthcare company off the ground?
Whether you're setting up a private dental centre, GP practice, physiotherapy, osteopathy or chiropractic clinic, you'll need appropriate premises. Renting an existing commercial property can be cost-effective in the short-term, but it isn't without its drawbacks. You'll be vulnerable to future rent increases and other service charges, and if you want to make changes to the property in order to expand your business, you'll need to seek your landlord's permission.
If you buy a commercial property, it will become one of your business's most valuable assets and you're likely to have more freedom to alter or expand your property to suit your needs. You may be able to take out a commercial mortgage to buy premises if you have some assets that you can use as collateral.
Purchasing Equipment – How To Cover The Costs
The standard office furniture and IT equipment that most businesses need can be costly enough, but specialist healthcare equipment can be prohibitively expensive for start-up companies. There are a number of financial instruments available that can help private healthcare companies to purchase new equipment, however, so it's worth looking into this if you're planning to set up a business in the sector. You can obtain business loans from a range of lenders, but you could also consider solutions such as asset finance, which involves leasing equipment from your finance company with the option to buy it outright at a later date.
Financial Instruments To Help You Keep Your Business In Order
A private healthcare company's need for funding won't always end the moment that it opens its doors but there are financial products that can help. You could take out a short-term loan to cover unexpected costs, for example, or improve your cash flow management by using invoice financing, which involves assigning unpaid invoices to a finance company who will provide you with access to a percentage of that money straightaway.
Find Out More
Before taking out any form of finance, however, it's important to talk to an expert. Contact Business Finance Solutions (UK) Ltd., and we can help. You can also learn more in our Free Guide To Finance And Funding For The Healthcare Sector.
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