Care Home Business Finance

Acquiring a care home, freehold or leasehold, typically requires finance against both the property and the goodwill of the operating business. Specialist lenders assess bed count, occupancy rate, fee income per bed, staffing ratio, and CQC rating alongside the physical property. We arrange care home acquisition finance from £500,000 to £10m+, structured as commercial mortgages, bridging loans for time-sensitive acquisitions, or development finance for conversion projects.

Care home refurbishment, to maintain CQC standards, improve fire safety compliance, or upgrade facilities to attract higher fee-paying residents, requires access to finance that does not disrupt operating cash flow. Refurbishment loans are available secured against the property, with interest rolled or retained during the works period to avoid servicing pressure.

Local authority fee payment terms, often 30-45 days in arrears, create a persistent working capital gap for care home operators. An invoice finance facility or working capital loan bridges the gap between service delivery and fee receipt, ensuring wages, supplies, and utilities can be met on time.

Profiling beds, hoists, pressure care mattresses, mobility aids, laundry equipment, and kitchen facilities all qualify for asset finance. Spreading the cost preserves working capital while ensuring equipment meets CQC standards.

Care home groups looking to acquire additional sites can access larger facilities backed by the combined asset value and trading performance of the existing portfolio. We have access to lenders who specialise in care home group lending.