I am sure you have read a number of times that banks are still keen to lend in the care sector, this undoubtedly is correct. You have probably also read that the actual cost of funds has never been so low – absolutely true. However, even in a favoured sector such as Care, the rules of lending have changed. Whatever your plans for the future, buy, sell or stay as you are, it would be prudent to take note of these changes now.Banks are far more demanding on the level of detailed information they require on any business that they are considering providing funding for. Examples of the information that may be required are:
A lack of information may stop you from realising the true value and potential of your business and achieving your next step.
If you are considering selling your business, whether it is now or in the future, clearer and more detailed information will be required. If you are trying to buy a business the purchasing process will be drawn out if this information is not readily available. Indeed if the information is not as expected when you finally receive it, funds may not be released, resulting in a costly aborted purchase. If you plan to stay as you are, your lender may start asking for information that they have never asked for before – be prepared.
The Care sector is a favoured sector for lending. The cost of funds has never been lower. Chandler & Co can help you access these funds whatever your goals. Our specialist advisers at Chandler & Co can help you determine how competitive your existing lender is and what your alternatives are; it may not be necessary to change lenders to get a better deal.
Are changes to the lending market a bad thing? The simple answer is no. As a result of the credit crunch some operators will become more knowledgeable about their own business – surely this can only be a positive thing.
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