Assisted Living/Rehabilitation Facility Financing up to $700,000
For many, the journey to rehabilitation doesn’t happen overnight. Assisted living/rehabilitation facilities are necessary for those recovering from serious injury, illness, or need assistance as they age. To those who offer these services, doing business does not come cheap. We’ve helped assisted living/ rehabilitation facility business owners get the financing they need, up to $700,000, with no obligations, no impact on your credit score, and no fees.
With over 800,000 American residing in assisted living facilities, there is no doubt that assisted living and rehabilitation care is not only a booming business but a necessity for those aging and in need of help with their day-to-day activities as well as those who are recovering from injury or illness.
For those looking to start their own business, applying for an assisted living/rehabilitation facility loan can be an expensive, complex and challenging process. It requires enduring market analysis, acquisition acumen, development expertise, and an intimate understanding of the local, state, and federal regulatory requirements, not to mention skilled nursing and other specialized staff members.
Keep reading to learn more about assisted living/rehabilitation facility loans, the specific types available to businesses today, and how you can have the best chance to get funding.
What Are Assisted Living/Rehabilitation Facility Loans
The assisted living/rehabilitation facility loan is a type of financing designed for assisted living facilities such as a senior housing facility, retirement homes, nursing homes, and rehabilitation facilities with funding for projects that improve or expand existing assisted facilities.
Due to the nature of these facilities, the loan may also cover healthcare-related projects, equipment, and staffing.
What Can You Use Assisted Living/Rehabilitation Facility Loans For?
Assisted living and rehab facilities often need funds to:
- First aid equipment (gloves, disinfectant, pain medication, bandages)
- Diagnostic equipment (heart rate monitor, blood pressure monitor, scales, blood pressure cuffs, stethoscopes, pulse oximeters, thermometers)
- Medical supplies (medication, needles, syringes)
- Infection and sterilization equipment (hand soap and sanitizer, mask and shields, gloves, disinfecting wipes)
- Safety equipment (patient alert devices, walkers, wheelchairs, shower seats, crutches, braces, adjustable beds, alarms)
- Remodel their building
- Cover marketing and advertising costs (print ads and commercials, online marketing costs such as paid search engine marketing (PPC), and social media advertising)
- Labor- The average salary for an assisted living facility worker is around $50,000/year.
- Staff training and certifications
Types of Funding for Assisted Living/Rehabilitation Facility Businesses
A standard option is for all residential care facilities are equipment loans. Equipment loans give assisted living properties a chance to purchase medical equipment, furniture, and technology to help the business grow while staying within budget. With access to the right financing, they can purchase the necessary equipment without straining their budget. These loans typically require a minimum of $100,000 annual revenue and a credit score of 660 or more.
Small Business Loans offer financing for assisted living facilities that need money to get started or wish to expand. Small business loans may require collateral such as a home or vehicle, which the bank can repossess if the loan is not paid, but it can be easier to obtain than other funding forms. A credit score of 680 or more is recommended to lower interest or the collateral needed to qualify.
A merchant cash advance (MCA) is an advance payment made by a lender or investor to a business in exchange for future payments from the business’s sales. MCAs give you fast access to funding, often within 48 hours for the entire process.
Another option is a business line of credit, a source of short-term funding that allows you to borrow money up to the predetermined amount to help you bridge the gap between paying for expenses and receiving payments from customers. Banks or other financial institutions usually offer business lines of credit for purchasing inventory, paying employees or suppliers, and repairing or renovating a facility.
Finally, you can also consider applying for an SBA Loan if applicable within your industry’s guidelines. SBA loans are a great funding source for many small businesses, including assisted living homes and rehabilitation facilities. These loans typically offer lower interest rates and competitive terms than other loans.
How to Apply for the Best Assisted Living/Rehabilitation Facility Business Financing
You must satisfy the following requirements to be approved by MCashAdvance™ for an assisted living facility loan:
Merchant Cash Advance requires a minimum credit score of 500 or higher. We will review your credit history to determine whether you have a good track record of paying bills on time and managing debt responsibly. If you don’t have good credit, an application with a lower score can still be approved if other favorable factors (such as collateral) exist.
Small business owners can receive up to $700,000 in funding. However, businesses vary, so the amount you receive will depend on your circumstances.
Your business needs will determine the term length of your loan.
Tips for Qualifying for an Assisted Living/Rehabilitation Facility Business Loan
Lenders check your personal credit history and credit score when considering your application to see if you may not repay the loan. A good credit score above 670, will help you get approved for loans easier than those with poor credit scores and may determine how much interest you’re required to pay.
A good business plan that lays out the anticipated growth for your business over the next three years should also be included, and projected earnings and current debts are essential for any loan application. Will you be investing in a big marketing campaign to bring in business? Will your assisted living facility offer specialized services like memory care? What are you doing to set yourself apart?
Existing facilities provide key reports that show stability: monthly statements with no material variances in cash flow or debt-to-equity ratios. It’s also necessary to have a strong 12-month history of profitability with at least two years of audited financial statements available. Lenders need to know what your numbers look like to secure financing.
What Are the Advantages and Disadvantages of an Assisted Living/Rehabilitation Facility Loan?
Commercial financing such as assisted living/rehabilitation loans have advantages and disadvantages.
Assisted Living/Rehabilitation Facility Loan Pros
Some loan options will fit your assisted living/rehabilitation facility’s needs. Assisted living/rehab facilities are not one-size-fits-all, and lenders will work with you to find the loan that best fits your needs, whether expanding to a larger building, hiring more specialized staff (cleaning staff, nursing assistants, registered nurses, dieticians, physical, occupational, and speach therapists, receptionists, etc.) or purchasing new equipment.
An assisted living/rehabilitation facility is a considerable investment. Most likely, you will need large amounts of capital to buy the building and maintain high living standards for residents. Assisted living/rehabilitation facility loan options provide the capital you need to invest.
Interest rates on assisted living/rehab facility loans are often fixed, with companies typically offering between 8% and 10%.
Assisted Living/Rehabilitation Facility Loan Cons
The prerequisites to qualify for an assisted living/rehab facility loan differ from lender to lender and can be hard to achieve, not to mention extensive, for new businesses.
You will need to show annual revenue and business history, such as intake rates, and prove the business has been operating successfully for six or more months with projections for future revenue to show how you will pay back the loan over time.
Established businesses are preferred over new businesses for assisted living/rehab facility loans. Lenders prefer that you have a strong track record of success.
Rates on assisted living/rehab facility loans are also dependent on your credit history, with every lender having a preferred minimum credit score. A healthy credit score of over 600 or more is crucial to qualify for these loans.
Frequently Asked Questions About Assisted Living/Rehabilitation Facility Loans
Assisted living/rehab facility loans are used for paying staff, marketing, and capital purchases. Others use them to expand, renovate the facility, and buy necessary equipment like nursing supplies, lift chairs, and safety equipment.
Approval times vary by lender. For example, it may take anywhere up to 30 days for banks to approve a loan to 90 days for government or state funding programs to provide funding to facilities. MCA financing offering a quick turnaround for those approved.
Assisted living facility financing is meant to be used to pay for the construction, maintenance, and upkeep of a rehabilitation facility or other type of assisted living facility. You shouldn’t use these types of loans to finance unrelated projects such as non-facility vehicles or stay-at-home care, as this might land you in legal trouble.
Yes, you can get an assisted living/rehab facility loan without collateral. The SBA 7(a) program, business lines of credit, and MCAs offer loans without collateral. The SBA 7(a) program offers up to $5 million with fixed or variable interest rates for eligible businesses.
Assisted living/rehabilitation facility loans and financing are often sought after by healthcare professionals such as registered nurses, dietitians, social workers, and occasionally general practitioners who want to start their own business to provide services to support and improve the health of those in need.
Funding Your Business Is Our Business
Assisted Living/Rehabilitation Facility Loans May Help Grow Your Business
There is no doubt that an assisted living/rehab facility loan is very beneficial to both the business owners and the consumers. Assisted living facility loans and financing can help you get started on the right foot and give your business the support it needs during its early stages. The end result is better cared-for patients, which means happier customers who will stay longer to receive the services. Don’t hesitate if you have a rehabilitation facility; talk to us today about your financing needs!
Don’t Allow a Lack of Funding
to Hold your Business Back
It’s Time To Move Your Business Forward!