Banks should demonstrate more commitment and understanding

Posted on May 1st, by editor in Caring Times. No Comments

|By George Knox, principal of The Medical & Professional Consultancy| Without the banks the private care sector would not exist. Yet, as grateful as some may be, there are various problems in how the banks attempt ­ or indeed do not attempt ­ to understand fully how the care sector works. Too many banks are far too anxious to restrict nursing and care home owners to short mortgage repayment programmes. This has the effect of restricting cashflow. I meet many conscientious, caring and hard working care home owners running homes with excellent occupancy. Yet, upon reading healthy annual accounts, they cannot understand where their profits have gone. The difficulty is that, after they pay their tax, most of the remainder is often then paid as capital on their commercial mortgages, leaving them with little or no profit to bring their homes up to the standard the banks expect. Many banks fail to realise that a lot of care home owners find it diflicult to satisfy the tax man, the bank and prepare for “Fit for the

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