Financing Medical Agencies and Nursing Services
When it comes to financing your medical agencies and nursing services, it is a good idea to see what options are available to you and do some research before picking one. Some options will be designed to only help start-ups and others can be there for you throughout the life of your company. Some common options include loans, lines of credit and cash advances.
There are a couple of different types of loans you can take out for your agency such as traditional banks, Small Business Administration or third-party loans. You can take all of these in conjunction if needed, but it is important to not get in over your head. One of the benefits of working with the SBA to secure funding is that this administration will work with you and with your bank to reduce the risk posed by extending your financing while helping you qualify for more money.
Lines of Credit
Lines of credit can be a great option for medical agencies and nursing services, especially revolving ones. These lines can be used, paid off, and reused repeatedly to help you get supplies and even pay reoccurring expenses like rent and utilities while your clients are paying back the invoices. You can even set up lines of credit with suppliers, as opposed to a bank-issued credit card, for more funding options and to build a better business relationship with them. Lines of credit are especially useful in regulating cashflow between busy periods and slow ones because you can still access the supplies you need during slow times and pay the line down during busy ones.
Some non-traditional financing options include seeking cash advances from third parties developed for that purpose. These work by selling part of your future income, usually in the form of invoices, for an advance on that amount. The balance is then paid either through credit-card transactions by the lender taking possession of the invoice collection process. Many healthcare-related businesses will use a third-party collection company to handle pilling and provide funding before the client’s payment becomes due.
Nursing services and medical agencies can find financing in many of the same ways that businesses in other industries do, plus a few specific ones related to health care. For instance, since health care is largely an invoice driven industry, you can find cash advance companies designed specifically to handle health-related invoices. You can also find traditional and SBA backed loans to help you start or grow your company alongside lines of credit to help you through fluctuating cash flow.