How easy is it for a healthcare company to access Business Finance In Uganda?
In Uganda, companies and healthcare institutions confront similar challenges when it comes to business funding.
Healthcare funding in Uganda faces some challenges. These include a general need for more financial knowledge and comprehension of the formal financial sector.
What is lending for a healthcare company?
Lending for a healthcare company operates quite similarly to lending for other company types. Healthcare company funding assists the established company to operate seamlessly.
The health system in Uganda includes both privately and publicly sponsored establishments. All medical company establishments are subject to government regulation. Hospitals, clinics, and pharmacies are all supported by private firms. Insurance firms offer private health insurance. No national health insurance program exists.
The government is increasingly thinking about public-private partnerships for healthcare company investments. Here, they provide the land, and private investors pay for building and facility company operations. Some obstacles facing the Ugandan Health sector’s growth:
- Technology, equipment and high-level knowledge are required for a medical company or hospital. Uganda mostly outsources such company resources, making it an expensive affair. However, business finance in Uganda comes in handy to help out.
- The medical company in Uganda is entirely dependent on imported active pharmaceutical ingredients.
- Production procedures are rarely mechanised by a Ugandan medical company.
- High running costs for a hospital or medical company using backup generators. Few licensed cold and dry storage facilities contain active medicinal components until final manufacturing.
- A hospital needs more infrastructure and capacity for regulation and quality control.
Why there is a need for business finance In Uganda for medical businesses:
Equipment: Uganda has an underdeveloped healthcare system. Hence the substantial increase in health initiatives led to demand for medical equipment. It calls for better access to Business Finance in Uganda by these medical companies.
Systems and equipment in demand include:
- Record administration
- Obstetric dopplers
- Pulse oximeters
- Cardiac echo machines
- Treadmill stress machines
- Lab apparatus
The above items and equipment are needed for microbiology, haematology, chemistry, and histopathology.
Manufacturing of generic pharmaceuticals: Approximately 80% of Uganda’s vital medications and medical supplies get imported from other countries.
It makes it critical for a hospital to access funding.
Manufacturing generic pharmaceuticals continues to be a lucrative business opportunity for investors due to Uganda’s high demand for medical services and the government’s favourable tax policy for manufacturing facilities.
Finance & Resource Allocation: Business Finance in Uganda
It is difficult for healthcare facilities to have access to enough funding in Uganda. Yet the funding is needed to help the medical firms provide a full range of PHC services. Several underlying difficulties got revealed by examining the flow of primary medical care monies. This was done from the federal and facility levels.
Healthcare facility business finance In Uganda comes in handy to help deliver complete hospital care services regularly.
Districts and facilities often need more business funding in Uganda to implement necessary healthcare infrastructure changes.
The Impact of Healthcare in Uganda
Uganda’s healthcare is making significant progress. It is moving towards meeting the sustainable development objective. The goal is to guarantee good health and well-being for all ages set forth by the United Nations.
Hospital reports show new HIV infections have decreased, falling by 32% between 2010 and 2014. Likewise, hospital reports show the number of AIDS-related deaths has decreased from 120,000 in 1998 to 31,000 in 2014. And even more encouragingly, between 2009 and 2014, the number of children infected with HIV fell by 69 per cent. Additionally, the prevalence of HIV positive among exposed infants who underwent testing dropped from 12.5% in 2010 to 5.3% in 2015.
Healthcare Businesses in Uganda: Funding Solutions
Why banks are shy to offer business finance In Uganda for a healthcare company:
Business management knowledge: Banks frequently feel uneasy about disbursing loans to hospitals. Each hospital needs to gain business management knowledge. It needs to demonstrate to loan officers the true profitability of their medical firms.
Doctors and medical business owners are particularly receptive to funding. They are also open to financial management guidance and training. They are aware that the lack of the same could hinder funding. There are programmes to give extensive business management training. Some others give accounting support, and business mentoring to a network of several private health clinics around the nation. Such is currently supported by the USAID/Uganda Private Health Support Program.
Lack of acceptable collateral security—A company in the health sector frequently has few collateral sources. The majority (61%) rent their facilities. Banks are reluctant to accept equipment as movable collateral. They believe they will not be able to sell it quickly on the market in the event of default. Many health centres need additional security, such as land.
Physical infrastructure: (premises and equipment) and insufficient hospital employee skills prevent operations from growing.
Small loan sizes: Bank loan officers sometimes receive bonuses depending on the amount of Business Finance in Uganda of their monthly disbursements. The requirement for relatively small Business Finance in Uganda sizes makes them less appealing.
Business Partners International
BPI (Business Partners International) Uganda comes in handy to finance Uganda’s existing and already established healthcare businesses.
BPI helps, through its healthcare loans in Uganda, to grow such a medical company. The goal is to help it rise to a level it can easily access business finance in Uganda from the bank.
Business Partners International Uganda has fully understood Uganda’s healthcare businesses’ challenges.
It willingly bridges that gap through business finance in Uganda packages.
Are you an established business owner? Apply right away to get a loan limit between US $100,000 and $1,000,000*. Business finance in Uganda through BPI Uganda is specifically customised to your needs as a healthcare business owner.
Business Partners International Uganda will assess your business’s financials to check for viability and collaborate with you to ascertain its potential. To access business finance from BPI Uganda, the company considers factors other than security.
To access the BPI business finance in Uganda, all you need is to fill out the application form on the portal [Apply Now]