According to 2022 data, nearly 58 million adults aged 65 and older live in the U.S., representing about 17% of the nation’s population—and that percentage is only going up. By 2040, seniors are projected to make up about 22% of all Americans. Combine those numbers with the fact that older Americans typically suffer from more health issues than their younger counterparts, and it’s not a stretch to understand that the healthcare system in general will be more in demand.
One of the biggest beneficiaries of the medical advancements that allow more cost-efficient at-home treatments will be home healthcare companies. With nine out of 10 seniors wanting to stay at home for as long as possible, it stands to reason the home healthcare industry will be one of the fastest growing for the foreseeable future. But those who choose to venture into this field may find themselves investigating the variety of business loans for home healthcare companies to ensure they thrive.
Top Considerations Before Applying for a Business Loan
In addition to ensuring you have the documentation that will be required to secure a business loan, which of the two distinct forms of home healthcare services your company provides is something lenders will want to know:
- Home Health—Primarily government funded through Medicaid and Medicare, home health is a medical necessity with prescribed care through a doctor or other medical professionals. Services provided may include administering medications, addressing wound bandages and helping with exercise.
- Home Care—Typically funded by families and friends, home care focuses on helping seniors with day-to-day activities, with employees not medically certified. Services provided may include companionship, wellness and safety, meal preparation, housekeeping help, grocery shopping and care coordination.
Why Business Loans Benefit Home Healthcare Companies
The biggest outlays home healthcare companies usually have will be for staffing, operations and technology. Workforce shortages mean there is greater competition for the best employees, professional recordkeeping is a must and innovative advancements are becoming vital to success. Exploring business loans for home healthcare companies is a smart strategy for ensuring you have access to funds to support your company’s daily operations and growth.
Types of Business Loans to Consider
Since no two companies will have the same funding needs, lenders offer a variety of business loans to ensure one of the options will be right for you. Your choices include:
- Business lines of credit—Funds up to a set amount that can be accessed whenever capital is needed and repaid (with interest) over and over again
- Equipment financing—Funds used to upgrade existing equipment or make new equipment purchases
- Traditional term loans—A lump sum of capital that is paid back with regular installments at a fixed interest rate
- Working capital loans—A loan that can assist with the daily costs of operating the company
- Merchant cash advances—An upfront sum of cash received against the company’s future credit and debit card revenues and repaid by a predetermined daily percentage of those revenues
- SBA loans—The hardest type of loan for which to qualify, providing cash to expand a company, advertise, consolidate debt and even pay taxes
Bottom Line
There’s no question the demand for home healthcare companies is strong and will continue to rise along with the country’s aging population. To ensure your company can successfully compete in this lucrative space, you may need to rely on a business loan of some type to see you through a tough stretch, hire additional staff, purchase new equipment, increase advertising or address other operational concerns. You have plenty of options to help ensure your company has a “clean bill of health.”
Clear Skies Capital has helped many home healthcare companies determine the business loan that’s best for them and get the financing they need in a timely fashion. Contact us today at 800-230-9822 to discuss your company’s needs.