There are many reasons why a private duty agency would try to qualify for home care funding. However, the most common motive is that they cannot afford to wait weeks or months to be reimbursed by Medicaid or another governmental agency. Without a constant inflow of cash, home care agencies run the risk of not having enough capital to meet payroll, pay vendors or grow their business. Fortunately, home care financing can provide the necessary capital to help struggling private duty agencies maintain a healthy cash flow.
Not sure if home care funding is right for your private duty agency? These questions will help you decide:
- Is too much of your home care agency’s available capital tied up in its accounts receivables?
- Do you have a profitable private duty home care business that is sometimes short of cash?
- Do you bill Medicaid, the Department of Aging or another governmental agency that requires your agency to wait weeks for payment?
- Are you spending too much time tracking and collecting your home care company’s accounts receivable?
- Has your private duty home care agency missed a growth opportunity because it didn’t have enough cash to fund the growth?
- Has a bank recently rejected your home care agency’s loan application or required you to pledge personal assets as collateral?
- Are your home care receivables available to be collateralized? (They have not been pledged to a lender or another entity).
- Are you thinking of starting a private duty home care business and worried that you won’t be able to meet ongoing operating costs like payroll?
If you answered YES to any or all these questions then home care funding is absolutely a solution for your private duty home care business. A home care financing company can get your agency fast cash, freeing up your time and energy to focus on ways to grow your business. Get started by choosing a company that is affiliated with International Factoring Association (IFA). Visit www.factoring.org, and use the association’s searchable database to find a home care funding company in your area.