Healthcare
Business Funding for Home Health Agencies
Home health agencies face a brutal cash flow cycle. You send caregivers to patients, Medicare or Medicaid processes the claim, and you wait 30 to 60 days to get paid. Meanwhile, you are paying wages weekly. The faster you grow, the worse the cash gap gets because you are adding caregivers and patients simultaneously. Agencies that solve the cash flow problem grow fast because demand for home health services far exceeds supply.
Common Uses
What Home Health Agencies Use Funding For
- Cover weekly payroll for nurses, aides, and therapists while waiting on insurance reimbursement
- Fund caregiver recruitment, background checks, and training programs
- Invest in home health software for scheduling, documentation, and billing compliance
- Open a satellite office to serve patients in a new geographic territory
Funding Options
Best Funding Types for Home Health Agencies
Medical Receivables Factoring
Sell your Medicare and Medicaid receivables to a factoring company and get cash within days instead of waiting 30 to 60 days. Factors specializing in home health understand CMS billing cycles and will advance 80 to 90 percent of approved claims.
Business Line of Credit
A revolving line covers payroll and operating expenses between reimbursement cycles. Home health agencies with at least 12 months of history and steady claims volume can qualify for meaningful credit limits.
SBA 7(a) Loan
Fund the costs of launching a new agency or expanding into a new territory, including state licensing, accreditation, and initial staffing. SBA loans provide the long runway needed to get through the startup period before revenue stabilizes.
What Lenders Look For
Qualification Notes for Home Health Agencies
Related Industries
Related Healthcare Funding
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