CFACommercial Funding Advisory
Healthcare business

Healthcare

Business Funding for Senior Care Providers

Senior care is one of the fastest growing sectors in the economy as the population ages, but the capital requirements are substantial. Assisted living facilities need licensed buildings, specialized equipment, and round-the-clock staffing. Even non-medical home care agencies need working capital to cover caregiver wages before clients pay. The regulatory environment adds compliance costs that many business owners underestimate.

Common Uses

What Senior Care Providers Use Funding For

  • Acquire or renovate a facility to meet state assisted living or memory care licensing requirements
  • Cover caregiver wages and benefits while building census in a new facility
  • Purchase medical equipment, monitoring systems, and accessibility modifications
  • Fund marketing to families and hospital discharge planners to build referral relationships

Funding Options

Best Funding Types for Senior Care Providers

SBA 504 Loan

Ideal for purchasing or renovating a senior care facility. SBA 504 loans offer fixed rates and 20 to 25 year terms on real estate, which keeps monthly costs low while you build census and stabilize revenue.

Working Capital Loan

Cover the gap between opening a facility and reaching breakeven occupancy, which typically takes 12 to 18 months. Working capital loans keep the lights on and staff paid during that critical ramp-up period.

Medical Receivables Factoring

For agencies billing Medicaid or long-term care insurance, factoring receivables provides immediate cash. Medicaid payments can take 45 to 90 days, and factoring prevents that delay from crippling your operations.

What Lenders Look For

Qualification Notes for Senior Care Providers

State licensing for assisted living, memory care, or home care must be obtained and in good standing before lenders will close
Staffing ratios mandated by state regulations directly affect operating costs, and lenders verify you can meet them
Facilities with a history of state inspection deficiencies will face difficulty getting approved for financing

Ready to Explore Funding for Your Senior Care Provider Business?

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