Care Home Business Loans

From property purchase to CQC-driven refurbishment, fund your care home with confidence. Explore business funding through Fundably. Eligibility criteria apply.

Typical Range

£25k – £2m

Average Loan

£350k

for care home

Decision Speed

24–48 hrs

for unsecured loans

Eligibility requirements

Current registration in good standing with the relevant national care regulator
Minimum 12 months trading history for the operating entity (longer for larger secured facilities)
Evidence of occupancy levels and fee income, typically via management accounts
Personal guarantee usually required from directors on secured lending

Loan types available

Secured Business Loan

Rate: 4.5% – 13.9% APR
Term: 3 – 25 years
Security: Care home property or other commercial property
Best for: Buying or extending a care home, or funding a major capital works programme

Asset Finance

Rate: 5.4% – 13.9% APR
Term: 1 – 10 years
Security: The asset being financed
Best for: Hoists, profiling beds, nurse call systems, and other specialist care equipment

Unsecured Business Loan

Rate: 7.4% – 26.9% APR
Term: 1 – 6 years
Security: No security required
Best for: Smaller refurbishment works, staff recruitment costs, or working capital between funding reviews

Representative example

Borrow £350,000 over 36 months at 9.9% APR (fixed). Monthly repayment: ~£11,277. Rates depend on your circumstances and the type of loan.

Common challenges

Inspection ratings from the relevant care regulator can influence occupancy, local authority placements, and therefore a lender's view of the business
Capital works to bedrooms, bathrooms and communal areas are often needed to maintain standards and keep the home competitive
Staff recruitment and retention in a regulated, skills-shortage sector is a significant and rising cost
Fee income is a mix of local authority, NHS and self-funded residents, each with different rates and payment timescales

Bad credit?

Some specialist lenders consider care home businesses with imperfect credit. You may need a personal guarantee or higher rate, but options may be available. Fundably may use a soft credit check for matching, which does not affect your credit score. A hard check may happen if you choose to proceed with a lender.

Frequently asked questions

Does my CQC or equivalent inspection rating affect whether I can get finance?

Inspection outcomes are one of several factors lenders consider, since they can affect occupancy, local authority contracts, and the general risk profile of the home. A strong, recent rating supports a stronger application, while a lower rating does not automatically rule out finance, particularly where you can show a credible improvement plan already under way. Lendus works with lenders experienced in the care sector who assess the whole picture rather than a single inspection outcome.

Can I borrow to fund bedroom and bathroom refurbishments?

Yes, this is one of the most common reasons care homes borrow, whether to maintain registration standards, improve resident experience, or refresh older parts of a building. Smaller programmes of work are often funded with an unsecured loan, while a full-scale refurbishment across multiple floors is more commonly financed with a secured loan against the property. Phasing works around occupied areas is often part of the planning lenders expect to see.

What is the best way to fund specialist care equipment like hoists and profiling beds?

Asset finance is typically the most cost-effective route, since the equipment itself is used as security, which usually means better rates than unsecured borrowing. This also avoids a large upfront cash outlay when equipping new bedrooms or replacing ageing equipment across the home, and terms can be matched to the expected working life of the equipment. This also makes it easier to keep equipment current as clinical and safety standards evolve.

Can a new care home operator get finance to buy a property?

Yes, though lenders will look closely at your management team's sector experience, since operating a regulated care setting requires specific expertise. A secured loan against the property is the usual route, and having a registered manager and clear staffing plan in place before completion will strengthen the application. Lendus can advise on what lenders typically want to see from a first-time care home buyer.

Equipment finance for care home businesses

Buying a specific machine or vehicle is usually cheaper than a general business loan, because the asset itself is the security. These are the items care home businesses most often fund, with the price range we see quoted in the UK.

Equipment	Typical price range	Finance page
Assisted Bathing System	£6k to £35k	Assisted Bathing System finance
Bath Lift	£400 to £5k	Bath Lift finance
Care Home Laundry	£4k to £45k	Care Home Laundry finance
Mobility Scooter Fleet	£5k to £60k	Mobility Scooter Fleet finance
Nurse Call System	£8k to £120k	Nurse Call System finance
Patient Hoist	£1k to £9k	Patient Hoist finance
Pressure Care Mattress	£600 to £6k	Pressure Care Mattress finance
Profiling Bed	£900 to £7k	Profiling Bed finance
Commercial Stairlift	£3k to £15k	Commercial Stairlift finance
Wheelchair Accessible Vehicle	£15k to £70k	Wheelchair Accessible Vehicle finance
Aesthetic Laser	£10k to £60k	Aesthetic Laser finance
Anaesthetic Machine	£15k to £60k	Anaesthetic Machine finance

Browse all equipment finance pages

Guides and resources

How to Get a Business Loan Business Loan Eligibility Secured vs Unsecured Best Business Loans UK iwoca Review Funding Circle Review

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For UK limited companies with at least 3 months’ trading and monthly revenue.