Where to find funding for your nursing agency business
Where to find your Nursing Agency Business CAPITAL
Before you can actually start to raise capital for your health-related business,
you should first identify the amount of capital you need. Next to prepare is
your business plan. You will need that document to convince potential investors,
creditors and lenders that will help you fund your nursing business. Make sure
that you include cash flow analysis to show the feasibility of your proposal
Of course, you should start looking for capital in yourself. Determine how much
money you have and how much can you risk for that proposed nursing business
venture. If ever you cannot stretch your savings, you can find capital from the
different sources below:
Credit from Suppliers
Suppliers for your business offer payment schemes. For instance in a home care
business, your suppliers for medical supplies may give you about a month to pay
the goods. Pay on time to establish a business relationship with your supplier
to enjoy discounts and adjusted terms to a longer period.
Life Insurance Companies
If you have a life insurance, you can check with your provider if you can borrow
an amount to be used on your nurse business. It is the policy of most life
insurance company to lend money to their clients as long as their policy had
Friends and relatives
Try to present your business proposal to your friends and relatives. If ever
they wanted to support you, you should have a binding covenant with them as a
guarantee that you will pay the money.
Clients and Customers
There will be patients that pay in advance. Or, some agencies needing health
workers deposit a certain amount after closing a deal that you will provide
their staff. The advanced payment can be used to start the work.
You can choose to lease for the equipments you need in starting your home care
or nursing home to minimize the capital you need. However, leasing is more
costly than bank financing. You can only lease equipments that can be
repossessed easily in case you failed to make payments. Usually, you can
purchase the equipment at the end of the lease period.
Commercial finance companies
Commercial financing companies are the alternatives in case bank financing is
hard to secure. Similarly, they consider your faculty to pay the loan. Unlike
banks, they give greater importance on the quality of your collateral than your
income projections and credit score. Expect these companies to impose higher
Bank financing is chosen by most nurse entrepreneurs in order to find capital.
Banks approve loan based on your ability to pay, your income projections,
managing abilities, and your credit score.
Small Business Administration
The Small Business Administration (SBA) is an arm of the government that is
established primarily to aid small businesses. They grant SBA loans to
qualifiers for ten-year maturity period. Their criteria are even more stringent
than on banks and commercial financing companies. Contact the nearest SBA office
in your area if you opt for an SBA loan for your nursing business.
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