Senior Care Business Loans up to $450,000
Looking for the best senior care business loans? We’ve helped a lot of senior care businesses get the funding they need for medical equipment and other facility necessities and upkeep. We can approve you for up to $450,000 in 2 business days. Check if your business is eligible online now with no obligations, no impact on your credit score, and no fees.
Senior care business loans can help you establish your senior care services business, upgrade your equipment, hire qualified employees, pay for advertising, and inject capital into the business to help it grow.
What Are Senior Care Business Loans?
Senior care business loans and nursing home care loans provide funding for businesses that provide senior citizen care and services in the home health care industry. These businesses include agencies that provide:
- Non-medical home care
- Home health care
- Assisted-living organizations
- Adult daycare facilities
- Hospice care Assistance
Senior care business owners that provide home or facility-based care for senior citizens can apply.
What Can Senior Care Business Loans Be Used For?
The senior care business financing can cover many expenses including:
- Hiring
- Training
- Facility construction
- Renovation
- Equipment and supplies directly used for care
- Business equipment and software
When senior care industry borrowers apply for traditional senior care agency loans, they will typically have to present a senior care business plan that explains the allocation of the loan funds and how they’ll improve the business.
Non-traditional options like a business line of credit and merchant cash advances don’t typically require a specific plan for the funds.
Senior Care Business Loans Funding Options
Senior care lending solutions are available from traditional lenders like banks and the US government Small Business Administration (SBA). SBA loans often have the best interest rates but are the most difficult to get with the most limitations on eligibility.
These loans require good credit, a lengthy time in business, and a senior care business plan to justify the loan amount. The borrower gets the money in a lump sum and pays it back with a set payment each month.
Equipment loans come with the same difficulties as standard loans and require good credit, several years in business, and often large amounts of collateral.
Credit cards are a funding option many business owners rely on, but using credit cards is financially risky and expensive. In addition, it can result in poor personal credit if the business revenue isn’t as high as expected.
A business line of credit is an option for those who don’t qualify for loans or want cash flow available for any expenses. An ongoing line of credit usually requires a good personal and business credit score and can be challenging to get for new businesses.
Merchant cash advances look at the future more than the past and can help newer businesses gain funding without good credit.
Instead of incurring debt, the business owner gets a lump sum borrowed against future credit card revenue. They pay a set percentage of all credit card sales until the repayment equals the advance amount.
Tips to Qualify for Senior Care Business Loans
Before you apply for a senior home care business agency loan or a home health care loan, you can do a few things to increase your likelihood of approval.
First, check your personal credit history for inaccuracies and get them corrected. You can get a free copy of your credit reports from each credit agency. In addition, an Equifax account and many other free services online let you monitor your credit score.
Next, check your business credit score and report. You can get this information from any credit reporting agency. Unlike personal credit scores that you can get from many free services online, you’ll probably have to pay a fee for a full credit report and business score.
If your personal credit score is less than 750 or your business score is less than 75, you can take steps to improve them to raise your likelihood of getting a loan.
- Avoid applying for new lines of credit.
- Pay your bills on time, more than once a month if you can, and work to reduce the principal of outstanding loans.
- Avoid using more credit even if you have some available. Credit utilization affects your score, so keep the percentage you use as low as possible.
- Pay anything you owe that has gone into collections. Then, ask the creditors for a “pay for delete” arrangement where you pay the debt, and they delete the entry on your credit report.
- Use the free Experian Boost program to let your on-time utility bill payments improve your personal credit score.
- Ask existing credit cards to increase your credit limits, but try not to use them for a better debt to credit ratio.
- Ask suppliers for lines of credit and make the payments on time.
Once you know your credit score and situation, check each lender’s requirements for eligibility. This step will save you the time of applying for loans you can’t get based on the prerequisites. You’ll also avoid hard pulls against your credit that can lower your score.
Write a detailed and in-depth senior care business plan. A business plan can mean the difference between rejection and approval for small business financing.
Finally, make sure you have the necessary documents and paperwork. You’ll need tax returns and bank statements for your personal and business finances, business licenses, and other legal and financial documentation.
Pros and Cons of Senior Care Business Loans
Traditional senior care business loans are suitable for some businesses, but they might not be a good fit for every company.
Senior Care Business Loans Pros
Senior care business financing can help a business grow by offering:
- Loan options to fit your senior care business needs
- Large amounts of capital when you need it
- Lower interest rates and less cost over time than other non-traditional options
- You don’t need to hire a loan specialist to help you get funded.
Senior care companies and senior assisted living facilities that qualify for traditional loans can enjoy lower interest rates and lump sum funding. These loans usually cost less than options like credit cards or cash advances.
Senior Care Business Loans Cons
Some of the common drawbacks of traditional loans for your senior care business include:
- A long list of prerequisites to qualify for loans makes it difficult to be eligible.
- Higher interest rates for those with less desirable credit histories can make loans expensive.
- Lenders prefer to loan to established businesses over new businesses, making it harder for startups and new agencies to get funding.
- The online loan application must be accompanied by business documents and other loan information.
Merchant cash advances usually only require businesses to operate for three to six months before they’re eligible. They also don’t require good credit scores or set monthly payments since the loaned money is an advance against future credit card sales. Other businesses that don’t process credit cards are not eligible for merchant cash advances.
Frequently Asked Questions for Senior Care Business Loans
Most of the frequently asked questions about senior care financing involve how hard they are to get.
What Challenges Might I Face Qualifying for a Senior Care Business Loan?
A traditional senior care business loan can be challenging to get without an established business and excellent personal and business credit scores. If your company has debt from other small business loans or senior care financing, that also lowers the likelihood of another loan.
Can I Get a Senior Care Business Loan With a Bad Credit Score?
A senior care business owner is unlikely to get a traditional loan with anything less than a great credit score. For example, a personal credit score of less than 750 and a business credit score of less than 75 can disqualify you.
Do Senior Care Business Loans Require Collateral?
Senior care business loans often require collateral, especially high-value loans above $25,000. All SBA loans require collateral. Even unsecured loans from banks may still require you to sign a guarantee that you’ll personally repay the loan if the business can’t. However, merchant cash advances don’t require collateral because they’re not traditional loans.
How Hard Is It for Business Owners to Get Senior Care Business Loans?
Traditional senior care business loans require good credit and a lengthy application and approval process. A history of late payments, poor business credit, and less than 3 to 5 years in business can result in a loan rejection.
How Much Money Does It Cost to Start a Senior Care Business?
Starting a senior care business ranges from $40,000 to $80,000 for home care, assisted living, or home health care agency to over $300,000 for home health Medicaid, Medicare, and hospice services. Assisted living operations can cost much more in construction and real estate costs. The costs vary by state because of different licensing requirements and regulations.
Funding Your Business Is Our Business
Senior Care Business Loans Can Help Your Business Grow
Traditional senior care business loans and other financing options like merchant cash advances can provide capital for your senior care facility or assisted living business.
A new senior care services business can benefit from a merchant cash advance that focuses on future revenue instead of the past to help your business flourish and promote future growth.
Don’t Allow a Lack of Funding
to Hold your Business Back
It’s Time To Move Your Business Forward!