Asset Finance

Asset finance is a reliable financial strategy for care homes to acquire essential assets without significant upfront costs. Carefully weighing the pros and cons, understanding the costs involved, and choosing the right finance type are crucial steps in leveraging asset finance effectively.

Understanding the terminology is key when selecting the right type of asset finance solution for your care home or healthcare business.

Operating Lease: Known as contract hire, a straightforward rental agreement for a specified item and time.

Hire Purchase/Lease Purchase: Regular repayments, option to own at the agreement's end, with fixed monthly repayments.

Finance Lease: Borrow an asset without buying outright, no upfront payment, and rental payments can be offset against VAT and profits.

Asset Refinance: Business sells assets to a provider and leases them back through monthly payments, easing cashflow pressures and releasing capital.

Welcome to our Specialist Care Home Asset Finance Brokerage!

Asset finance serves as a valuable tool for businesses, including care homes, seeking to acquire or refinance essential assets. Let's dive into the intricacies of this financial strategy, exploring its benefits, process, costs, and the crucial decision-making factors for care home owners, managers, and finance directors.

What is Asset Finance?

In simple terms, asset finance is a funding method used to purchase or refinance a business's assets. For care homes, eligible assets range from machinery, equipment, and vehicles to furniture, lighting, and internal refurbishments.

Why is Asset Finance Useful for Care Homes?

Owning vital equipment is crucial for the success and efficiency of care homes. Asset finance eliminates the need for large upfront cash payments, allowing care homes to acquire the necessary assets without financial strain.

How Does the Process Work?

The process of arranging asset finance varies based on the chosen lender and the required finance levels. Navigating the diverse market for the best deal can be complex, but a skilled broker simplifies the process. Acting as your single point of contact, they manage the entire journey from application to completion.

What Will it Cost?

Interest rates are case-specific and not typically published upfront. However, reputable brokers offer a range of low-rate asset finance options. The rate offered depends on factors like the type of asset and the nature of the business seeking funding. Strong assets with high security and good residual values attract the lowest rates.

Credit History Concerns?

A troubled credit history may limit options, but experienced brokers work with lenders willing to assist despite past credit issues. These lenders often expedite funding, ensuring a swift process for care homes where time is of the essence. The strength of the asset becomes crucial in determining the offered rate.

Pros and Cons of Asset Finance for Care Homes

Advantages:

• Fixed rates enable confident budgeting.
• Leasing companies may cover equipment repair costs.
• Afford better quality equipment without a hefty upfront payment.
• Cost spread over time aids cashflow management.

Disadvantages:

• Spreading payments may result in a higher overall asset cost.
• Some contracts impose substantial early repayment penalties.
• A deposit may be required based on negotiated finance terms.

 

We are a team of finance professionals specializing in asset finance for the care home sector. Our expertise is in providing bespoke financial solutions that cater to the unique needs of care home operators, from small family-run homes to large corporate entities.

Our services encompass a wide range of asset financing options, including leasing arrangements, hire purchase, and refinancing of existing assets. We understand the critical role that high-quality equipment and facilities play in providing excellent care, and we’re here to ensure that financial constraints don’t stand in the way.

With our extensive network of lenders and our deep understanding of the care home industry, we’re able to secure competitive rates and flexible terms for our clients. Our commitment to personalized service means we work closely with you to understand your needs and find the best possible solution. Let us be your trusted partner in securing the assets you need to provide the best possible care.

For care home owners, managers, and finance directors, working with experienced brokers ensures a smooth and trustworthy process tailored to the unique needs of the care industry.

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