The best
loan options will fund quickly with short repayment terms and low
origination fees. These loans can help you get quick access to growth
capital.
A home health care loan helps small
business fund a territorial expansion, in building new business acquisition,
or financing your immediate working capital needs. Due to the rapid rate of
growth in the home health care industry, the best loan options will fund
quickly with short repayment terms and low origination fees. These loans can
help you get quick access to growth capital.
There are 4 types of home
health care loans:
1. Short term loans: The aim here is quick
growth of capital to enter new geographic territories or buy out smaller
units. A short term loan, or a lump sum loan, is fixed with weekly or monthly
amortized payments. These loans usually have higher interest rates and short
repayment terms for less than 3 years, but they don't carry expensive
origination or hidden payments. You can receive up to $500k in funding and
will be able to get access to your funds within 1-3 days.
But in order to qualify for
the short term loan, you must meet the following requirements:
●
Minimum Personal Credit Score: 500
(contact your respective bank for this)
●
Minimum Time in Business: 1 Year
●
Minimum Annual Business Revenue: $100k
2. Business line of credit: This one's meant for
those home health care businesses that need a recurring working capital
solution for growth or unexpected expenses. A business line of credit will
typically carry these costs:
●
APR: 13.99 - 40% (best rates are reserved for prime
borrowers only)
●
Prepayment Penalty: None.
The requirements for this
one are:
●
Minimum Personal Credit Score: 600
(again, contact your bank)
●
Minimum Time in Business: 1 Year.
●
Minimum Annual Business Revenue:
$100k
3. Business Credit card: Health care
businesses that need to cover small daily expenses like buying supplies or
paying for travel, should opt for this one. Business credit card loan work
just like a business line of credit but it's easier to qualify for and
typically carries a much smaller financing amount. It usually consists of the
following costs:
●
Interest Rate: 12 - 29%, some have
0% introductory offers
●
Annual Fee: $0 - $350+
It also offers the
following rewards:
∆Initial Rewards: Introductory APR
of 0% for 7:- 18 months or cash back if you spend a certain amount within the
first 2-6 months.
∆Ongoing Rewards: Cash back on all
purchases or points you can redeem for useful rewards.
Here the qualification criteria
is easier as well:
●
Minimum Personal Credit Score: 650+
4. SBA Loan: Home health care
businesses wanting to buy real estate or vehicles for employee use, choose
this one. SBA financing includes a guarantee by the Small Business
Administration to cover most of the lender's loss, should the health care
agency fail to repay the loan within the requested time limit.
SBA loans typically carry
the costs:
●
Interest Rate: 5% - 10%
●
Prepayment Penalty: None
●
Origination Fee: 0.5 - 3.5%
●
Loan Packaging Fee: $2k - $4k
●
SBA Guarantee Fee: 3 - 3.5% (Waived
if loan amount is under $150,000)
And the requirements are:
●
Minimum Personal Credit Score: 680
●
Collateral: Typically required
●
Down Payment: 10-20%
●
Time in Business: 2+ Years
How to improve your chances
of getting a home health care loan:-
Below are a few simple things that
can up your chances of getting your request approved:-
1. Show you can clear the loan:
Everyone needs surity that you can clear the debts.
2. Demonstrate that you will clear
the loan within time: Words aren't enough in these things. You have got to
prove that you actually can clear it.
3. Convince the lenders that you
will be able to deal with unexpected circumstances.
CMS Funding offer best home healthcare loan options available for your
business will typically give you quick access to capital so you can meet
the demands.
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