Bethesda, Maryland assisted living centers provide housing and services to an increasingly growing population. However, between staggered payment schedules, and the high cost of maintaining equipment, supplies, and qualified staff, finding a reliable source of working capital can be a challenge. Recently Bethesda, MD assisted living centers have been turning to an alternative source of renewable working capital instead of relying on traditional loans.
How Loans Impact Bethesda, MD Assisted Living Centers
While loans may offer short-term solutions for working capital, the long-term effects can negatively impact Bethesda assisted living centers. First, traditional loans offer a finite amount of working capital. Once the capital is used, assisted living centers still have to cover overhead expenses, but with the added liability of debt and impacted credit ratings. If working capital is needed in the future, taking out another loan only increases the debt on the balance sheets, and it becomes a game of diminishing returns.
Renewable Working Capital
Instead of taking out loans, many Bethesda, MD assisted living centers are opting for asset based lines of credit. Asset based lines of credit are structured around the inherent value of items an assisted living center owns, such as equipment, inventory, vehicles, property, and receivables. From the assessed value of these items, a revolving business line of credit is created. Assisted living centers in the Bethesda area access what they need, and then pay off the balance, just like any other revolving business line of credit. Asset based lines of credit provide assisted living centers with a renewable source of working capital without any of the debt that comes with traditional loans. Assisted living centers receive increased purchasing power, plus the ability to cover overhead expenses, so they can focus on growing and providing the best care for their clients.
Helping Bethesda, MD Assisted Living Centers To Grow
Asset based lines of credit help assisted living centers to grow without relying on loans, as well. As a center acquires more equipment, expands facilities, or sees an increase in receivables, the amount of financing available through an asset based line of credit will also increase. This helps to promote growth and long-term success without the burden of debt.
Learn More About Asset Based Lines Of Credit
If you are running an assisted living center in the Bethesda, MD area, contact the experts at CNH Finance. We specialize in asset based lines of credit to provide a reliable and renewable source of working capital without the restrictions of traditional lending programs.
