CFACommercial Funding Advisory

Healthcare

Business Funding for Home Health Agencies

Home health agencies face a brutal cash flow cycle. You send caregivers to patients, Medicare or Medicaid processes the claim, and you wait 30 to 60 days to get paid. Meanwhile, you are paying wages weekly. The faster you grow, the worse the cash gap gets because you are adding caregivers and patients simultaneously. Agencies that solve the cash flow problem grow fast because demand for home health services far exceeds supply.

Common Uses

What Home Health Agencies Use Funding For

  • Cover weekly payroll for nurses, aides, and therapists while waiting on insurance reimbursement
  • Fund caregiver recruitment, background checks, and training programs
  • Invest in home health software for scheduling, documentation, and billing compliance
  • Open a satellite office to serve patients in a new geographic territory

Funding Options

Best Funding Types for Home Health Agencies

Medical Receivables Factoring

Sell your Medicare and Medicaid receivables to a factoring company and get cash within days instead of waiting 30 to 60 days. Factors specializing in home health understand CMS billing cycles and will advance 80 to 90 percent of approved claims.

Business Line of Credit

A revolving line covers payroll and operating expenses between reimbursement cycles. Home health agencies with at least 12 months of history and steady claims volume can qualify for meaningful credit limits.

SBA 7(a) Loan

Fund the costs of launching a new agency or expanding into a new territory, including state licensing, accreditation, and initial staffing. SBA loans provide the long runway needed to get through the startup period before revenue stabilizes.

What Lenders Look For

Qualification Notes for Home Health Agencies

State home health agency license and Medicare certification (if billing Medicare) are absolute requirements for any funding
Lenders track your claims denial rate and days in accounts receivable as indicators of billing efficiency
Joint Commission or ACHC accreditation improves both payer contracts and lender confidence

Ready to Explore Funding for Your Home Health Agencie Business?

Find out what you qualify for in minutes. No impact on your credit score.