How committed is your lender?

Posted on February 19, 2016
Archive : February 2016
Category : News

In recent years, many lenders have started to offer shorter term commitments for the funding of care homes, for example, a 5 year commitment term with repayments calculated as a 15 or 20 year repayment profile.  For lender and borrower, this can have both advantages and disadvantages.

At the end of the commitment period, both borrower and lender have a choice as to whether to renew the funding or not. As a borrower, it is necessary to start preparing for the end of your commitment period at least 6 months in advance, irrespective of your intention to remain with your existing lender. Your existing lender may well be the easiest option should they be prepared to offer you new terms.  However your position to negotiate competitive terms weakens as the end of the commitment period approaches.

If your lender chooses not to renew your funding or indeed you choose to seek funding from another lender, the sooner you start to explore funding options, the better.  You are more likely to secure the most competitive funding if it is not dictated by timescale.

Chandler & Co are independent of all lenders and as such are able to give impartial advice on the funding of your care homes.  For an initial consultation regarding funding in the Healthcare Sector, please contact us on 01622 817484.