Advancements in medicine and related technology have resulted in a longer life expectancy. Today’s senior citizen population is healthier than ever but expanding at a rapid pace. Assisted living and end-of-life care centers must therefore adapt to the lifestyle and growing number of new retirees.
Renovations and environmental upgrades can fulfill their need for more community interaction and wellness programs. Updated machinery and furniture can accommodate different health conditions as well as provide a heightened level of comfort. Then there’s the logistical need for more staff, supplies, and living spaces to meet inevitable increases in residents.
These crucial purchases and growth efforts would be a lot easier to achieve, were it not for the ongoing cash flow problems of assisted living and end-of-life care centers. As if being paid on a strictly monthly basis wasn’t frustrating enough, residents often miss payments due to insurance providers’ delays. Centers are left with barely enough cash to cover payroll and bills, let alone increasing or unforeseen expenses. Despite having to wait several weeks or even months for insurance payments to come in, payment deadlines for medical fees and capital expenditures for compliance costs are typically non-negotiable.
And it’s not as if insurance policies for seniors are becoming any less complicated. Waiting for insurance payments ultimately increases debt, damages profits, and makes it very difficult to save money. United Capital Source has many years of experience facilitating Small Business Loans for Healthcare & Seniors Centers. We have access to all types of business lending products. Contact us today for your FREE business funding consultation!
United Capital Source can facilitate accounts receivable factoring for senior centers looking to stay current on bills, upgrade facilities, and increase staff.
With this type of working capital loan, the business lender purchases unpaid receivables for a discount price. You can do this immediately after an insurance payment is not received by its expected date. So, instead of waiting for an unknown amount of time for the payment to come in, the business lender pays you just a few business days after your application is approved. It is also now up to the business lender to collect from the insurance provider.
When this payment is finally collected, you get paid whatever was missing from the first payment, minus a percentage. You lose a small portion of income, but this is nowhere near as harmful as the many dangers of waiting too long for payments. Profits will not shrink, bills will not go unpaid, and you will actually have the means to make improvements the moment they become necessary. This is vital for senior centers because just a slight delay with one such improvement can jeopardize multiple residents’ health or prevent them from becoming residents altogether. Outdated living spaces cannot be used, sufficient staff is needed at all times, and supplies must be delivered on a cyclical, timely basis.
Accounts receivable factoring is also just one of several business funding programs that could make sense for your senior center’s financial circumstances. As a standard, short-term working capital loan, other options can give you most of the aforementioned benefits. Some UCS clients solely take out working capital loans to pay their suppliers upfront or well ahead of due dates. This keeps inventory stocked throughout the year and makes them eligible for discounts.
Another attractive option for short-term investments is a business line of credit. A senior center could use the funds to increase staff, upgrade furniture, cover a recurring expense, and then pay off the balance with insurance payments or revenue from new residents. Apply now to see how much you qualify for!
|LOAN TYPES||MAX AMOUNTS||RATES||SPEED|
|Merchant Cash Advances||$5k – $1m||Starting at 1-6% p/mo||1-2 business days|
|SBA Loan||$50k-$5.5m||Starting at Prime + 2.75%||8-12 weeks|
|Business Term Loan||$10k to $5m||Starting at 1-4% p/mo||1-3 business days|
|Business Line of Credit||$1k to $1m||Starting at 1% p/mo||1-3 business days|
|Receivables/Invoice Financing||$10k-$10m||Starting at 1% p/mo||1-2 weeks|
|Equipment Financing||Up to $5m per piece||Starting at 3.5% (SBA)||3-10+ business days|
|Revenue Based Business Loans||$5K – $1m||Starting at 1-6% p/mo||1-2 business days|