As the Dealstruck team closes more and more small business loans and lines of credit, some interesting trends have emerged. We will delve deeper into a number of industries in the coming weeks, but I thought it would be interesting to highlight a business sector that is reaping significant benefits from our lending options.
Home Health Care Businesses
The business of caring for the elderly and infirm in their homes is booming, given the aging Baby Boomer population. We have now funded several of these businesses, and not only see the growing demand in the market, but we have also noticed some trends within the sector for financing needs.
Particularly, home health care businesses experience rapid growth in the beginning but quickly get to a point where continued growth becomes impossible due to constraints on their working capital. Often, their revenues get locked up in Accounts Receivable because the company is paid by Medicare, Medical, and private insurance—reliable but slow payers who sometimes take up to 90 days to pay invoices.
By setting these companies up with a Dealstruck working capital line of credit, revolving capital needs (i.e. payroll) are alleviated, and focus can be returned to growing the business rather than worrying about running out of operating cash.
If your home health business can identify with the pain points we have consistently seen, we feel confident that we have a solution for you. Let us know if we can help!