Get the Best Financing for Your Senior Home Care & Assisted Living Businesses
AdvancePoint Capital services offer senior care business loans and a variety of financing options that you can take advantage of so that you can get the funding you need through our marketplace that your bank just can't offer. AdvancePoint Capital has been experienced in loans for Senior Care Agencies for years and can help you access the various financing solutions you need from our alternative lender's network.
What is a Senior Home Care Business Loan?
We understand the difficulties of operating a senior care agency, home health care, or senior care facility and the need for senior care lending solutions to support it. Our job is to effectively provide the best business funding products to your assisted living business so you can effectively operate. Our lender network is second to none.
Whether a business owner is looking for a loan to purchase equipment, maintain a caring staff, need working capital, expand operations, or take on a new opportunity, - we are your source to access loans or alternative financing. Check out our services and lending process.
How does Senior Home Care Business financing work?
Business financing is based on your business need and your qualifications. The lender and business funding products dictate the features, rates, terms and conditions. For example, a business term loan has fixed terms and offer a lump sum upfront verses a business line of credit is a revolving credit line that allows you to draw funds as needed. Each product has unique features and qualifications related to risk.
How to chose a Business Loan for your Home Care Business or Assisted Living Facility
The first step in learning how to choose a business loan for your senior home care business is to evaluate what products are available for your need with your qualifications. Below is a the most popular business funding products for various different needs.
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Senior Care Business Loans
Small Business Loans
The most requested financing option, business loans are loan terms that are typically repaid from 12 to 60 months. This financing product serves a variety of needs.
Short Term Small Business Loans
Short-term loans are popular with business owners unable to get traditional business loans. Short-term is considered loan terms of 6 to 12 months to repay.
Business Lines of Credit for Business Owners
A business line of credit is a revolving line up to a credit limit. Like a cred card, you only pay interest on the outstanding balance. Great for everyday expenses or purchases,
Small Business Administration [SBA] Loans
SBA loans are popular with small businesses looking to grow and expand and need affordable long-term financing to cover the costs.
Merchant Cash Advance for Senior Care Business Owners
A merchant cash advance is alternative financing to small business loans.
Business Credit Cards
Credit cards are part of the arsenal for senior care business owners or a senior living facility. A great option for small purchases, everyday expenses and to pay bills.
Common Uses and Benefits of Senior Care Business Financing
Cash Flow/Working Capital Loans
Both senior care businesses and assisted living facilities need cash flow and working capital to manage their company. A senior care facility has facility maintenance costs, payroll, and other cash flow costs that have to be met. Senior home care agencies have payroll costs to cover their team as well. A loan for financing your company may be your only option for funding.
Employees and caring staff are at the core of the senior care industry for both senior care agencies and senior care facilities. It's a must to provide excellent care. Without proper staffing and the best possible care, your senior care operations will be limited. More people to expand your team costs money.
Looking to expand your senior care facility with a second facility expansion? Perhaps a new business to complement your existing businesses? These ideas will require a loan or some type of financing to pay for such an undertaking or expansion.
Advertising: Attract Customers
If clients and loved ones aren't aware of your services, your senior care or assisted living business will suffer regardless of an aging population. Internet marketing is the ground zero of advertising. If you are not present online, the senior care at home agencies or senior assisted living facility will not survive.
SBA Loans for Senior Home Care and Assisted Living Facilities
SBA is short for the Small Business Administration, who's mission is to support small business through financing programs that they administer, but are originated and serviced by SBA approved lenders who would not lend to businesses under the terms of SBA without certain guarantees that they offer if underwritten to SBA guidelines.
The SBA 7 (a) loan is the most popular SBA loan for senior home care and assisted living facilities. Below is the specifics of the SBA 7 (a) loan.
- Loan Amounts up to $10,000,000
- SBA guarantees to the approved SBA lender
- Terms that range from 5 to 10 years (real estate transactions allow for up to 25 years)
- Interest rates start at prime + 2.75%
- Expansion/Renovation- Senior care facilities can benefit from an SBA 7 (a) if they want to improve the facility or add more space.
- Purchase Buildings- Need a new building for your senior care facility, look no further than SBA.
- Working Capital- Affordable working capital solution in the form of a term loan or line of credit
- New Business Venture- The SBA 7 (a) permits funding for new businesses under certain circumstances.
- Terms that can reach out up to 25 years
- Payments that are monthly and affordable due to terms
- Affordable rates with low fees
- No balloon payment
CLIENT RELATIONS MANAGEMENT SYSTEMS SOFTWARE/TECHNOLOGY
In running a senior care agency or assisted living facility, client relation systems (CRMs) are a requirement. For senior care at home agencies and senior care facilities, CRMs manage the schedule for caregivers, monitor required medications for clients, record observations and manage care. Your company will not be able to provide excellent care without the best-in-class technology. It's not uncommon to have to finance a costly purchase like a CRM.
Pros and Cons of getting a Business Loan for my Senior Care Business
When considering financing for your senior care business it's important to way the pro's and con's. This is your business after all and you do not want to do any harm.
- Capital to grow and expand business
- Preservation of capital reserves of the senior care business
- Facilitates money more necessary purchases and/or expenses
- Business credit is strengthened by proving you can manage debt
- Saddles the business with debt
- Increases expenses with the debt payments
- The temptation to over extend the business in debt
- Can damage credit if you have trouble making payments
How to qualify for Senior Care Business Financing
The most common areas lenders look at to qualify business for funding include;
- Credit- Personal and business credit are considered when it come to business funding. Credit will impact what product and terms you can be offered.
- Time in Business- Some products allow for start-up such as SBA, others need at least 6 months in business and in some cases 3 years in business is necessary. Longer in business, the less the risk and better the offerings and terms.
- Cash Flow- How you manage your monthly cash flow in your business bank account matters a lot for business lenders. They evaluate debits, credits and daily balances looking for number of deposits per month, the overall volume of deposits month over month for any trends, and your cash reserves if any.
- Financial Statements- Some of the best products look at tax returns, profit & loss, balance sheet, accounts receivables, accounts payables and debt schedules in formulating there decisions. But don't fear as there are business funding products that do not require financial statements.
How to apply for a business loan for my Senior Care Business
- Consider your need- The use of funds in business lending is important as it can dictate the product and terms that are best suited for the reasons you need money in the first place.
- Understand your qualifications- You need to be aware of your qualifications such as credit, cash flow, financials and other details of you senior home care business so you can share with the business loan originator you are looking for funding. Your qualification will impact who you work with, what products you will be offered and the terms.
- Chose the lender or originator- Interview business lenders and funders to determine who is the best fit for your needs and qualifications. Ask around and make sure you check for what products they offer compared to others. Also consider reputation and experience before making any decisions on who you want to work with.
- Consider product offerings- Match products with your need to make sure it works for your qualifications and the features of the business funding works best.
- Take application- Provide filled out application and required documents depending on products your applying for pre-approval.
- Compare Offer(s)- Receive multiple offers and break down rates and terms. Shop and compare offers to make sure your getting the best solution for your need and qualifications.
- Select best offer- Chose offer and request agreement to sign and necessary closing conditions for final approval.
- Final Approval- Once the lender has received all closing conditions and signed agreement the lender or funder will conduct a final review that includes checks and verifications.
- Funding- Upon a clear-to-fund, and the lender sets up the repayment process, the funds are then disbursed to the business bank account.
*Not all business funding application processes are alike, so it's important to check with your lender or business loan originator as to the application process BEFORE you apply for details.
Why AdvancePoint Capital?
- Experience with senior care at home agencies and assisted living facilities – We have been providing senior care at home agencies and assisted living financing for years. Facility and home health care is our specialty.
- Trust – Excellent reviews and feedback from the senior care industry.
- Loan Advisor – Experienced business funding specialists who know the senior care industry and can provide financial growth tips as well as find the best interest rate. We have a great team at Advancepoint.
- No Obligation – No cost, no commitment quotes
- Products – A variety of loan options for senior care business owners. We don’t just offer what we have; we provide what’s available in the marketplace.