Practice Expansion Finance

A second site usually needs premises, fit-out, equipment, staff and working capital before it pays its way. Different parts often suit different finance, such as asset finance for equipment, a loan for fit-out and a facility for the ramp-up period. We help structure it as one plan and approach suitable lenders.

Often, yes. Adding surgeries typically means funding fit-out, equipment and the recruitment of clinicians, and lenders will look at the existing practice’s performance and the case for growth. What is available depends on the lender. We look at the whole project and structure funding around it rather than as a series of separate loans.

The existing practice usually carries a new branch through its first months, which can put pressure on cash. A working capital facility arranged as part of the expansion plan can cover staff and running costs until the new site builds income. Lenders will want to see realistic projections for the new location.

Typically they review the existing practice’s accounts and trading history, existing borrowing, the business plan and projections for the new site, and the experience of the owners. For veterinary, optical, private healthcare and care businesses the specifics differ. We prepare the case and approach lenders with an appetite for your sector.

Forcing an entire expansion into one loan rarely fits. Equipment may suit asset finance, fit-out a term loan, premises a commercial mortgage and the launch period a working capital facility. The right mix depends on the project and the lenders involved. We structure the funding so the parts work together. The British Business Bank’s finance guidance explains the main types of business finance.