As the Population Grows, Nursing Homes Are Driving Demand for Capital
Healthcare and the medical industry are booming. As Baby Boomers age out of their home and need specialized care in nursing homes, the need for these facilities is on the rise. The problem is that most nursing homes run on small margins.
Trained staff, the cost of equipment and the day-to-expenses of operating a retirement home along with the healthcare costs for older people can make it difficult for nursing homes to see a large profit. Many don’t want to take on additional debt.
Financing For Your Business
Rather than taking on debt, there are other financing options for the medical industry. You may want to leverage assets to get revolving lines of credit. Equipment, vehicles and receivables have value that go beyond their physical worth. You may be able to tap into that value by using them to a line of credit.
Financing that Grows With You
As your nursing home grows, your financing will grow. You will acquire more receivables and equipment. You can then leverage that into a greater credit limit. Asset based lines of credit could help you plan for the future, but you do need to have a strategy in place to manage the repayments.
Asset-based lines of credit
Revolving lines of credit work by providing you with funds. These funds are secured through your assets. You repay the funds that you borrow to the lender, who makes those funds available again. Although the application process isn’t as lengthy as a conventional loan, you should still be prepared with your financials and business documentation to support the financing.
Every lender has different qualifications, but generally, it is much easier to qualify for an asset based line of credit than it is for more conventional lending. Typically, it will take less time to push the funding through, too.
Contact Fintrus for financing options for the medical industry. We’re here to help.