Get the Best Financing for Your Senior Home Care & Assisted Living Businesses
AdvancePoint Capital services offer senior care business loans and a variety of small business 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. With an emphasis on simplicity and speed, and understanding that bad credit shouldn't block your access to funding, AdvancePoint Capital provides lending options tailored to the unique needs of the healthcare sector. AdvancePoint Capital has been experienced in loans for Senior Care Agencies for years and can help you facilitate a loan business acquisition, especially if you're exploring a home care franchise or looking to venture into franchise acquisition business expansion within the healthcare industry. Our alternative lender's network is flexible, offering solutions that can bring your senior care service to the forefront of healthcare excellence.
What is a Senior Home Care Business Loan?
We understand the difficulties of operating a senior care agency, home health care, or nursing home 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, considering the growing market of home care start-ups. 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 - including launching or refurbishing a nursing home facility with the help of an SBA loan – 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. Considering the vital role of underwriting in business loan approval, it is pivotal to understand that the process looks deeply into your creditworthiness and business plan's feasibility. Moreover, if you're looking into business acquisitions, especially within the senior care or assisted living sectors, you must seek out loans tailored for such investments. Below is 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, including working capital, equipment purchases, and crucially, debt refinancing. SBA 7(a) loans, ranging from $30,000 to $350,000, offered through the Capital for Business network are explicitly designed to cater to small businesses looking to refinance existing obligations, thus managing cash flow more efficiently.
- Terms are fixed rate, term and payment
- Easy, simple and straightforward application process
- Terms ranging from 6 months to 3 years
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 3 to 18 months to repay.
- Terms that range from 3 to 18 months, typically 12 months or less
- Streamlined application process with reduced documentation needed
- Receive funds in as little as 1 day
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.
- Credit facility that is revolving like a credit card
- Rates starting at 1% simple interest per month
- Ability o draw up and draw down on funds on demand
- Interest is only paid on the current balance
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.
- Rates that start at prime + 2.25%
- Terms that range from 5 to 10 years, up to 25 with real estate
- Comprehensive and detailed application process
- Must have Excellent to very good credit
Merchant Cash Advance for Senior Care Business Owners
A merchant cash advance is alternative financing to small business loans.
- Revenue based dental practice funding option
- Repayment is flexible based on future sales
- No term limit on a merchant cash advance
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/STAFFING
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.
BUSINESS EXPANSION
Looking to expand your senior care facility with a second facility expansion? Perhaps you're considering a strategic real estate acquisition to complement your existing operations? These endeavors, whether it is for the acquisition of another facility or expansion of current services, will likely require financial assistance. SBA financing has emerged as a viable solution for such goals, encompassing the needs for refinance, acquisition, or construction of licensed Senior Care and Assisted Living facilities.
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.
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.
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.
Details
- 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%
Purposes
- 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.
Benefits
- 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
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.
Pro's
- 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
Con's
- 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. Be aware that the lack of guidance from the SBA regarding borrowers with past credit issues means that there's no set minimum credit score for most loans, which could potentially work in your favor if you have a strong business proposition.
- Time in Business - Depending on the lender, various financial products are available for different stages of a business. Startups might find solace in SBA loans that are more accommodating, while other products may require a minimum of 6 months to 3 years in business. A longer track record reduces perceived risk, potentially resulting in better funding offers and conditions.
- Cash Flow - The way you manage your business’s monthly cash flow is scrutinized by lenders. They meticulously go over debits, credits, and daily balances to assess the number of deposits per month, the overall deposit volume over time, and any available cash reserves. They're not just looking for positive trends but also consistency and reliability in your transactions.
- Financial Statements - While top-tier financial products may scrutinize tax returns, profit & loss statements, balance sheets, and debt schedules, remember there's financing available that doesn't demand extensive documentation. No collateral is often needed for working capital loans or short-term funding, and the documentation needed is minimal. Hence, there's less pressure to present a polished set of financials if you're exploring options like these.
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.
