Assisted Living Centers: Getting Long Term Capital

May 11, 2017 by CNH Finance, LP in category “Financing”

Assisted living centers provide very integral services to people. However, between supplemental insurance programs and staggered payment schedules, access to working capital can be scarce. Fortunately, assisted living centers have been leveraging their fixed assets to create a renewable source of working capital.

Assisted Living Centers Use Asset Based Lending

When assisted living centers use asset based lending, they unlock the value hidden in their fixed assets. Equipment, vehicles, inventory, receivables are more all have an intrinsic value. With asset based lending, an in-depth analysis is performed to get the highest value for those items, and that value is used to create a line of credit.

A Solutions With No Debt

So many assisted living centers get into a financial bind by taking out short-term loans to maintain a steady cash flow, or to get working capital. The debt adds up, and credit ratings get to a point that taking out additional loans are no longer possible. Asset based lending, despite the name, is not a loan. It is treated as a regular revolving business line of credit. Assisted living centers pay on what they use, rather than having to place debt on the balance sheets and taking larges sums of capital all at once. Credit ratings are preserved, and assisted living centers have a new found source of capital which can be used for medical supplies, expansions, acquisitions, or anything else.

Growing With Your Center

Asset based lending is the only financing program that grows with assisted living centers. As facilities expand, new equipment and supplies are acquired, or as receivable increase, the spending limit on the line of credit also grows. A new analysis will be run to get the new value of your fixed assets, so that the amount of working capital available reflects your successes. Asset based lending is designed to help centers grow, rather than keep them in debt to banks and other traditional lending channels.

Get The Working Capital Your Assisted Living Center Needs

If your assisted living center could benefit from an extra source of working capital, and you do not want to be beholden to banks due to loan debt, contact CNH Finance. We work with assisted living center of all sizes to create custom financing solutions to ensure long-term success. Our team will go over assets other lending channels overlook, to get you the financing you need.

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