V4B Business Finance has helped a number of healthcare providers with funding to improve their facilities. These companies often require state-of-the-art equipment and very specialised technology which can make both refurbishment costs and tax incredibly expensive. Cash flow can become a serious issue when you include the myriad costs needed to comply with all the necessary NHS regulations.
One such business was a top surgeon who was interested in expanding his practice and opening a new private hospital. The finance broker that arranged the original leases to help fund the project used financing companies that also provide loans. This blocked up the credit capacity of the surgeon with exposure. If we had been in charge of these loans we would have used leasing-only companies as you never know when loans are required in the future.
In any case, the hospital wanted to bring control of the operating theatres in-house rather than being at the mercy of another hospitals schedule. This meant they would own their operating theatres rather than rent the space. That would save a sizeable amount of money each month and the extra capacity & efficiency would mean they could receive an increased workload derived from an already under pressure NHS. The new surgery suites would also improve their income and margins dramatically.
Our experts sat down with the surgeon and put together a plan to help him cover his expenses and still afford the new surgical theatres.
Bespoke Tax Funding
First, we helped set up a tax payment account with us. This meant the hospital could use one of our loans to cover their tax bill for January’s tax liability and the funds went directly to the HMRC. That saved time and paperwork by streamlining the payment of tax. It also allowed the hospital to keep the extra money that would have been used for tax in its accounts to cover any cash flow issues while the loan was paid back over the next 12 months. This allowed the hospital to use its new income to pay the loans over time.
Refurbishment Loans
We also provided a longer-term loan to support some finalisation works on the new hospital. This included an additional back-up power source in case of supply failure, an air handling system, and snagging checks on the building which released some final payments to the contractors.
Results
The refurbishment and tax loans helped the surgeon afford the new surgical suites without risking the cash flow of the business. With the new hospital ready, it could quickly provide a healthy ROI and the loans we arranged were paid back over time, easing the financial burden on the business.
Takeaways
Many of our clients have no idea that tax loans are even available. They may also be dealing with other business loans or financial obligations. Whatever your business goals, it is important to find a business finance partner like V4B Business Finance. We work with you to understand your unique needs and put together financing that is right for your business and its financial future.
Our loans can help you spread the cost of your tax and keep your finances liquid. This allows you to cover your expenses without incurring a substantial financial burden. The benefits of a loan from V4B Business Finance include:
- No arrangement fee
- Fixed interest payments
- No Directors Guarantees up to (150k) & over £1 million
- Retain capital
- Improved budgetary control
- Easy to arrange
- HMRC paid directly
- Credit facility available for all quarters
To learn more about our tax loans or any of our other lending products, please fill out our form to get in touch.
