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?
In a world where we can apply for financial products online with ease, if you're a busy healthcare company owner looking for financing solutions, you might be tempted to head straight to your bank's website. However, using a specialist credit broker with healthcare industry experience could be a more beneficial option for your business. Here are some of the reasons why:
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.
Business funding can be a tricky proposition for many service providers in the healthcare sector, due to the nature of cash flow, invoicing and NHS contracts. GPs, dentists and many NHS contractors operate as independently funded businesses, and must finance their operation in the same way as enterprises in other sectors, while being largely dependent on income from NHS contracts.
Whether you're establishing or expanding a healthcare business, you'll almost certainly need to raise finance to achieve your goals. However, due to the manner in which the UK healthcare sector is funded, the array of options available and the strict criteria used by conventional lenders, finding a suitable funding method can be challenging. A specialist finance brokerage, such as Business Finance Solutions (UK) Ltd, can help you to navigate your way through the healthcare funding maze.
Raising finance is an integral part of running a new or established dentistry practice. Your dentistry business needs a location with enough space to cater for treatment rooms, a reception area and a patient waiting area. If you are purchasing a property, you may need to change the property use and raise funds for refurbishment works to refresh the interior. You may also need to purchase or replace dentistry apparatus. Your practice and equipment needs to be adequately insured. On top of this, you also need to pay your staff, cover operating costs and expenses and ensure you have a contingency fund for unforeseen circumstances.
Start-up healthcare businesses often require funding to acquire property, assets, staff and medical supplies. What is the best way to raise finance? A range of funding options are available from conventional lenders and specialists operating in the healthcare sector. The best product for you depends on your type of business and what you need the finance for. Let’s look at this in more detail.
The healthcare sector in the UK operates on a mixture of public and private funding. Most healthcare services are provided through the government-funded NHS, but there is also a thriving private health sector – and many healthcare professionals operate on a mix of NHS contracts and private funding through independent sources.
Healthcare businesses often require large amounts of funding for expensive medical assets, acquisitions, property or medical commodities. Due to the volumes involved and the specific needs of the sector, healthcare funding requirements are not always catered for by conventional banks. Funding may be unavailable or be charged at a higher premium than other sectors.
Access to adequate funding is essential for healthcare businesses to grow. Many businesses depend on expensive medical equipment. For instance, the latest MRI scanners can cost £760,000 - £1.8 million, a 3-D mammography machine over £500,000, a robotic pharmacy sorting system £6,200- £40,000, and a dental chair £3,000 - £22,000.