Nursing home financing has become a very important issue in the financial world, because of the growing significance of healthcare organizations themselves, and the valuable service they provide to our aging population. Nursing home financing is necessary because even healthcare organizations are not immune to cash flow shortages and late payment problems. Here are some of the most popular options for nursing home financing today.
SBA loans are very popular in the general business community, especially with small to midsize businesses, and there is no exception among healthcare organizations. SBA loans can be very appealing for nursing home financing because the federal government guarantees at least a portion of the loan, in the event that the healthcare agency is forced to default on its payments.
There are number of traditional lenders which can provide financing to healthcare agencies, including small banks such as local lending institutions, large national banks, and even credit unions. The most common types of financing made available are lines of credit and term loans.
Cash advances for healthcare agencies generally involve selling future revenue from the organization in exchange for immediate financing. The healthcare agency and the lender work out exactly which kinds of future revenues are to be sold, and the repayment process begins as soon as monies are deposited in the account of the healthcare agency.
These kinds of loans are extended to healthcare agencies by nontraditional institutions, and are often made available by private lenders or private groups of lenders, which are not subject to standard regulatory constraints which traditional banks and other lending institutions are. While interest rates tend to be higher on these alternative loans, approval rates are far higher than they would be with banks and other lenders.
Financial assistance for your assisted-living facility
If your assisted-living facility is in need of financial assistance, we may be able to provide the kind of help you need. Contact us at Bear River Financial, so we can explore some possibilities for getting you the help that will keep your facility running smoothly.