The commercial finance market remains active for businesses looking to acquire, refinance or expand, with particularly strong lender appetite across specialist healthcare sectors.
While borrowing costs remain higher than during the previous low-rate environment, greater market stability has allowed lenders to focus increasingly on the strength of the underlying business, operator and sector.
Supported living and care remain attractive but increasingly specialist areas of lending, with lenders considering the property, operator experience, trading performance and overall structure of each proposition.
For suitable cases, specialist funding can extend to up to 130% of the bricks-and-mortar value for supported living, while care home finance can be available at up to 75% of market value.
Operators may also have access to cashflow and asset finance facilities to support refurbishments, equipment purchases, working capital and further growth.
Dental practices continue to attract strong lender appetite, supporting first-time buyers, existing practice owners and larger groups looking to expand.
Funding can potentially reach up to 100% of freehold value and up to 90% against practice goodwill, subject to affordability, experience and the strength of the acquisition.
Cashflow and asset finance can also provide additional funding for equipment, practice improvements, technology and working capital requirements.
Pharmacy acquisitions often include a combination of property, goodwill, business assets and stock, meaning specialist funding can provide greater flexibility than a conventional commercial mortgage.
Funding can potentially extend to up to 100% of freehold value and up to 80% against goodwill, subject to the individual proposition and lender assessment.
Separate stock funding facilities may also be available, helping reduce the amount purchasers need to contribute towards stock from their own cash resources. Pharmacy owners can also access cashflow and asset finance solutions for equipment, refurbishment, working capital and wider business investment.
AWS Private Finance works with a broad range of mainstream and specialist lenders across care, supported living, dental and pharmacy finance.
Whether the requirement is an acquisition, refinance, capital raise, cashflow funding, asset finance or expansion, selecting the right lender and structuring the funding correctly can make a significant difference to both the amount available and the overall terms.
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