Q: I am a partner in a nursing home. The neighbouring property has come on the market and would be ideal for a sheltered housing complex. I can’t borrow sufficient money on my existing business, so how could I find an investor?
Aug 17 2005
Answered by: Clive Lewis Ask a question
Even though the value of your existing nursing home is not sufficient to secure the size of loan you need, it may still be possible to raise a loan to develop your sheltered housing complex. The loan itself would be secured on the development, although additional security (such as your nursing home) might be required. Sums of money can then be drawn down from your loan as the development takes place. For example, Royal Bank of Scotland offers a Flexible Business Loan, with amounts available from £10,000 and you can have repayment terms up to 25 years. You can keep payments low at the start of the loan with a payment holiday or low start option. check with all the other banks to compare their products.
If you would prefer to raise money from a partner or investor, rather than a loan, to fund the idea, you could see if you could find a business angel. A business angel is someone who is willing to invest risk money, usually in return for a substantial share in the business and possibly a role in the management of it.
Read this helpful guide to raising finance to help grow your business. Alternatively our sister website GrowthBusiness.co.uk have produced a feature on the first steps to fundraising - venture capital view.
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