Assisted Living Facility Loans up to $700,000
Rehabilitation doesn’t happen overnight for many people. People recovering from serious injuries, illnesses, or aging need assisted living/rehabilitation facilities. For those who provide these services, doing business is costly. mCashadvance offers financing up to $700,000 to assisted living rehabilitation facility owners.
There are over 800,000 Americans living in assisted living facilities making assisted this type of care a booming business.
Applying for an assisted living or rehabilitation facility loan can be a complicated process. To be successful, you need to understand local, state, and federal regulations and lot of other potential roadblocks.
Find out how you can get funding for your assisted living or rehabilitation facility, and what types of loans are available to you.
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, loans may also cover equipment, staffing and other healthcare related projects.
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
The standard option for residential care facilities is to take out equipment loans. Medical equipment, furniture and technology can be purchased with this type of financing to help care facilities grow. The right finance allows care facilities to buy equipment without straining their budgets. The minimum requirement for these loans is $100,000 annual income and 660 credit score or better.
Financing is available for assisted living facilities needing to start up or expand. Loans to small businesses may require collateral, such as a home or vehicle that the bank can repossess if payments are not made.
MCAs are advances made by lenders or investors to businesses in exchange for future sales payments. The entire process can be completed within 48 hours with MCAs.
Business lines of credit are another source of short term funding that can be used to help with working capital. Care facilities use business lines of credit to buy inventory, pay suppliers or renovate their facilities.
Finally, you can apply for an SBA loan if applicable within your industry’s guidelines. SBA loans are a great funding source for assisted living and rehabilitation facilities. Typically, these loans offer lower interest rates and competitive terms.
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:
Eligibility Requirements
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.
Funding Limits
Small business owners can receive up to $700,000 in funding. You may receive more or less depending on your business.
Term Length
The term length of your loan depends on your business needs.
Tips for Qualifying for an Assisted Living/Rehabilitation Facility Business Loan
Lenders consider your credit history and credit score when considering your application. Having a credit score above 670 will help you get approved for loans easier and determine how much interest you pay.
A good business plan that lays out projected growth for your business over the next three years should also be included in your application. You should also answer the following questions. Will you invest in a big marketing campaign? Does your assisted living facility offer memory care? What are you doing to set yourself apart?
Existing facilities should provide reports showing monthly cash flow statements without material variances and debt to equity ratios. You should also have at least two years of audited financial statements and a 12-month history of profitability. 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.
In most cases, assisted living and rehab facility loans have fixed interest rates between 8% and 10%.
Assisted Living/Rehabilitation Facility Loan Cons
For new companies, loan requirements for assisted living and rehab facilities vary from lender to lender and can be difficult to meet.
A business plan showing how you will repay the loan over time will be required as well as annual revenue and business history, such as intake rates.
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 used to pay for the maintenance and the up keep of rehabilitation facilities. Don’t use these loans to finance unrelated projects such as non-facility vehicles or stay-at-home care.
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.
Nurses, dietitians and social workers look for financing to open their own care facilities.
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!
Does Your Business Need Funding Today?
There’s no fee or obligation, and it won’t impact your credit.
$5,000 – $1,000,000
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