One of the most important businesses in today’s world is senior care and assisted living facilities. If you operate a location, you likely have a passion for helping the aging population. Unfortunately, the coronavirus pandemic has greatly affected the economy and may have created financial hardships in addition to the healthcare crisis.
Senior care owners may need additional cash flow in times like these. If you’re in this position, you may be looking for funding. A small business loan or equipment lease can help provide financing for assisted living facilities so you can offer the best experience and comfort for your residents. Here are five ways you may choose to use an influx of funds.
1. Modernize Your Senior Care Facilities
Clean, modern facilities help create a welcoming setting that lets you focus on providing the best care for your residents. To keep them as comfortable as possible, you may need to purchase new furniture, bedding, and accessories for residents’ rooms and for shared community centers that provide the atmosphere and comfort of home.
You may also want to create engaging outdoor spaces, such as adding a garden and outdoor sitting area. Sprucing up the grounds will give your residents a place to relax and enjoy the sunshine and spend time with other residents or with family members when they come to visit.
Creating modern senior care facilities will also include having the latest technology and tools. It may be time to upgrade or supplement your current computer systems, televisions, security cameras, nurse call buttons, and medical equipment. You can also consider buying new software that helps you more efficiently manage your facility. For example, software can help you track resident care plans and meals or manage your resident admission and waiting list process. Having new technology and equipment is an investment in helping your senior care facility run more smoothly.
2. Facilitate Hiring
Extra working capital will also help you hire additional staff members, who can provide care for your residents as well as handle important tasks, such as maintenance and extracurricular entertainment activities. Having a high staff to resident ratio is a good way to demonstrate the quality of care you can offer. During the pandemic, hiring can be extra challenging. By offering a competitive wage as well as a comprehensive benefits package, you can help reduce your turnover and retain your staff so you don’t disrupt your level of care and daily operations.
3. Cover Everyday Expenses
Cash flow is important in every business, but when you operate senior care facilities your residents depend on you and the services you provide. From time to time, you may need extra cash to cover the recurring costs, like payroll, rent or mortgage payments, utilities, taxes, food, insurance; and professional services, such as lawyers and accountants. If your residents are late on payments, or you have an extended vacancy, having financing for assisted living facilities in place will help you cover the normal operating costs without disrupting the services you provide, especially during the uncertain economy.
4. Implement an Expansion Plan
The demand for assisted living facilities is expected to increase in the future. According to the U.S. Census Bureau, citizens age 65 and older will make up about 20% of the world’s population by 2030, and nearly 70% will likely need care at some point. This forecast may have you considering expanding your assisted living facility to a larger location or opening a second facility. A loan could help you grow your business and expand your reach, helping you bring in additional revenue and meet market demand.
5. Increase Your Marketing
While the demand is there, businesses still need effective marketing to avoid vacancies that hurt cash flow. As you make improvements or add more beds, you’ll want to invest in marketing that helps you spread the word and build your branding. Marketing expenses may include having a website, offering training for your sales team, taking out advertising, printing brochures or hosting community events. Assisted living facility loans can give you the cash flow you need to put your strategies into action.
Senior Care and Assisted Living Loans Can Help
Maintaining and modernizing your facility is a good investment, and financing for assisted living facilities can help you achieve your goals. Senior care facility owners can choose from two forms of funding. A small business loan for senior care facilities can provide you with the cash you need to cover everyday bills, like payroll and utilities, as well as large investments, such as capital expenditures and expansion. When you choose assisted living facility loans, you maintain control over your operation, as opposed to getting help from a partner or investment capital firm.
Or you can choose equipment financing or leasing. This type of loan can help you quickly upgrade or add new technology or equipment that helps you better care for your residents. You can lease new or preowned equipment with flexible payments that help you hold onto your cash to use in other areas of your senior care facility.
When you decide which type of financing is right for you, you’ll need to gather some documents and information in order to complete a loan application. You’ll likely need three months of bank statements as well as personal identification, such as a driver’s license. Once you submit an application, the lender can help you choose the loan solution that’s best for your business.
By 2030, about 1.9 million Americans are projected to require nursing home care, which is a 50% increase since 2017, according to the Population Reference Bureau. Senior care and assisted living facility owners play an important role in the health and safety of aging adults. The future of your business can be bright when you care for it with as much concern as you do for your residents.