Finance Assets arranges asset finance for care homes, helping UK residential, nursing and specialist care providers fund profiling beds, hoists, nurse call systems, laundry and kitchens, minibuses and energy upgrades.
Asset finance for care homes spreads the cost of that equipment over 2 to 5 years, so fee income pays for the kit as it is used. It suits operators replacing beds and moving and handling equipment, homes preparing for inspection, and groups rolling out nurse call or digital care records across several sites.
Written by Marcus Wright, founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed October 2026.
On this page
The short version
- Asset finance lets care homes spread the cost of equipment over 2 to 5 years.
- Beds, mattresses, hoists, nurse call, laundry, kitchen and vehicles from different suppliers can go on one agreement.
- Lenders look closely at your inspection rating, occupancy and the mix of local authority and private fees.
- Many care homes cannot reclaim all their VAT, so a lease that spreads it can suit.
- Finance Assets arranges asset finance for care providers trading as limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Profiling beds, pressure mattresses, hoists, assisted bathing, nurse call, laundry, kitchens, minibuses, care technology and energy equipment |
| Terms | Usually 2 to 5 years, matched to how long the equipment stays in use |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Mostly new, though used vehicles and laundry equipment can be funded |
| Extras | Installation, ceiling track fitting and nurse call cabling can often be included |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Equipment we finance for care homes
Lenders will fund most of the equipment a care home relies on. Each group links to our detailed guide where we have one.
| Equipment group | Examples |
|---|---|
| Beds and pressure care | Profiling beds, low beds, pressure-relieving mattresses and specialist seating |
| Moving and handling | Mobile and ceiling track hoists, standing aids, slings and stand-assist equipment |
| Bathing | Assisted baths, shower trolleys, shower chairs and sluice equipment |
| Nurse call and safety | Nurse call systems, falls sensors, access control, CCTV and fire safety equipment |
| Care technology | Tablets and devices for digital care records, Wi-Fi and medication systems. See IT equipment finance |
| Laundry | Commercial washers, dryers and ironers. See laundry equipment finance |
| Kitchen | Ovens, dishwashers, refrigeration and food trolleys. See catering and refrigeration finance |
| Vehicles | Wheelchair-accessible minibuses and pool cars for outings and appointments |
| Energy and plant | Boilers, heat pumps, solar PV and standby generators |
For clinical and diagnostic equipment, see medical equipment finance on our healthcare finance site, Medical Business Finance.
How care homes use asset finance
Care homes usually turn to asset finance to replace worn equipment, improve care and keep the home in good standing with inspectors.
- Replacing beds and mattresses. Refreshing a whole floor or home at once, instead of piecemeal.
- Ceiling track hoists. Reducing manual handling risk for staff and residents, with installation included.
- Nurse call upgrades. Replacing older systems with ones that log response times and support falls monitoring.
- Cutting energy bills. Care homes are heated around the clock, so heat pumps and solar PV can make a real difference to running costs.
- Keeping cash for staffing. Spreading equipment costs keeps cash available for wages, which are most of a care home’s costs.
Residential, nursing, supported living and home care
Each type of care provider needs different equipment and is assessed a little differently.
- Residential and nursing homes. The widest range of equipment, from beds and hoists to laundry and kitchens. Nursing homes also need more specialist pressure care and clinical equipment.
- Specialist care. Homes for dementia, learning disability or complex needs often fund sensory equipment, adapted vehicles and specialist seating.
- Supported living. Providers can fund vehicles, technology and furnishings for the properties they run. Lenders look at the length of their contracts.
- Home care agencies. Domiciliary care providers mainly fund cars for care workers and call monitoring technology.
Buying, building or refinancing a care home
Asset finance covers equipment, not the building. For the property and the business itself, our healthcare finance site, Medical Business Finance, covers each option in detail:
- Care home finance, an overview of funding for care providers
- Care home acquisition finance, for buying a trading home or adding to a group
- Care home commercial mortgages, for buying or refinancing the property
- Care home development finance, for new builds, extensions and conversions
An extension or refurbishment often needs both: property finance for the building work, and asset finance for the beds, hoists and nurse call that go into it.
Finance options for care homes
Care homes often lease equipment to spread the VAT, and buy long-life equipment on hire purchase. Our types of asset finance guide covers each option in more depth.
| Type | How it works | Suits |
|---|---|---|
| Hire purchase | A deposit, then fixed monthly payments. You own the equipment after the last one | Laundry, kitchens, hoists and energy equipment you will keep |
| Finance lease | Rentals with VAT added to each one. The lender owns the equipment | Homes that cannot reclaim all their VAT |
| Operating lease | Lower rentals priced around the expected resale value. You hand it back at the end | Care technology and devices that will be replaced |
| Contract hire | A fixed rental for an agreed term and mileage, often with maintenance included | Minibuses and care worker cars |
Hire purchase for care homes
Hire purchase for care homes is the usual way to buy laundry, kitchen, hoists and energy equipment you plan to keep. You pay a deposit, often around 10% plus the VAT, then fixed monthly payments, and the equipment is yours after the last one. You are treated as the owner for tax from the start, so you may be able to claim capital allowances.
Finance lease for care homes
A finance lease for care homes suits homes that cannot reclaim all their VAT, because VAT is added to each rental instead of being paid upfront. The lender keeps ownership. At the end you can usually keep using the equipment for a small secondary rental, or sell it and receive most of the proceeds.
Operating lease for care homes
An operating lease for care homes works for tablets, devices and other care technology that will be replaced within a few years. Rentals are set around what the equipment should be worth at the end, and you hand it back or upgrade when the term finishes.
Contract hire for care homes
Contract hire for care homes is used mainly for wheelchair-accessible minibuses and care worker cars. You pay a fixed monthly rental for an agreed term and mileage, with servicing often included, and the vehicle goes back at the end. For larger passenger vehicles, see asset finance for bus and coach operators.
VAT and tax for care homes
Residential care is usually exempt from VAT, so many care homes cannot reclaim the VAT they pay on equipment. On hire purchase, VAT on the full price is paid at the start, which can be a large cost if you cannot reclaim it. On a lease, VAT is added to each rental, spreading the cost. Some equipment for disabled residents may qualify for VAT relief. With hire purchase you may be able to claim capital allowances, and lease rentals are usually an allowable business expense. Check the VAT and tax treatment with your accountant.
Care home equipment finance costs: a worked example
A £90,000 equipment refresh for a 40-bed home, with profiling beds, pressure mattresses, ceiling track hoists, a new nurse call system and laundry equipment, costs about £2,016 a month on a 4-year hire purchase, or about £1,681 a month over 5 years.
| Item | 4 years | 5 years |
|---|---|---|
| Equipment price (excl. VAT) | £90,000 | £90,000 |
| Deposit (10%) | £9,000 | £9,000 |
| VAT paid upfront | £18,000 | £18,000 |
| Monthly payment | £2,015.69 | £1,681.43 |
| Total interest | £15,753 | £19,886 |
The longer term lowers the monthly payment by about £334 but adds around £4,133 of interest. If the home cannot reclaim VAT, the £18,000 paid upfront on hire purchase is a real cost, which is why many homes choose a lease instead.
Illustration calculated in October 2026, assuming an interest rate of 9% a year. It is not a quote. Your rate depends on your trading history, credit profile and the equipment.
What lenders look for in care homes
Lenders look at the usual financial documents, plus the measures that show how well the home is run.
- Your last 2 years of filed accounts, or management accounts and a forecast for newer businesses
- Your last 3 to 6 months of business bank statements
- Your latest inspection rating from the CQC, Care Inspectorate, Care Inspectorate Wales or RQIA
- Occupancy, fee rates and the split between local authority and private residents, plus reliance on agency staff
- Supplier quotes, plus photo ID and address history for each director, member or partner
Related guides
- Laundry equipment finance
- Catering equipment finance
- IT equipment finance, for care technology
- Asset finance for dental practices
- Care home finance on Medical Business Finance
- Medical equipment finance on Medical Business Finance
- All sectors we finance
- Types of asset finance
Who we can help
We arrange asset finance for care homes and care providers that trade as UK limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000 that are for business purposes. We are not authorised by the FCA, so we cannot arrange agreements of £25,000 or less for sole traders or partnerships of two or three partners, or finance for personal use.
Asset finance for care homes FAQs
Does my inspection rating affect care home finance?
Yes. A good rating makes approval easier. Homes rated requires improvement can still get finance, especially where the equipment helps address the inspector’s findings, but lenders will look more closely.
Should a care home lease or buy its equipment?
It often depends on VAT. If you cannot reclaim VAT, a lease spreads it across the rentals instead of paying it all upfront. If you can reclaim it, hire purchase is often cheaper overall for equipment you will keep.
Can ceiling track hoists be financed?
Yes. The hoists, tracks and installation can be funded together, usually alongside beds and other moving and handling equipment.
How much does care home equipment finance cost?
It depends on the equipment, the term and your business. As an illustration, a £90,000 equipment refresh costs about £2,016 a month over 4 years on hire purchase at 9%, after a 10% deposit and the VAT paid upfront, or about £1,681 a month over 5 years.
Can you fund buying a care home?
Asset finance covers equipment only. For buying, building or refinancing a home, see care home acquisition finance and care home commercial mortgages on our healthcare finance site.
Can a home care agency get finance for cars?
Yes. Cars for care workers can be funded on hire purchase or contract hire. Lenders look at your local authority and private contracts and how long they run.
Get an asset finance quote for your care home
Tell us what you want to finance
Send us the equipment, the prices and a few details about your home or care business. We will come back with the options that are realistic and what they are likely to cost.
About the author
Marcus Wright is the owner and founder of Bolton Business Finance Ltd, which trades as Finance Assets. He has worked in financial services since 2008, beginning his career at Santander, and has been a commercial finance broker since March 2019.
He founded Bolton Business Finance in 2020 to give businesses access to the whole lending market rather than one bank’s own product range. The firm is a member of the National Association of Commercial Finance Brokers and works with a panel of 135+ lenders. Call 0161 546 9128.
Finance Assets is a trading name of Bolton Business Finance Ltd, an independent commercial finance brokerage, not a lender. We are not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. All lending is for business purposes only. Registered address: Westgate House, 1 Westgate Avenue, Bolton, Greater Manchester, BL1 4RF. Company number 12495909.