Finder makes money from featured partners, but editorial opinions are our own. Advertiser Disclosure

Business loans for home healthcare services

How to get funding for your company when insurance claims take forever.

Name Product Filter Values Min. Amount Max. Amount APR Requirements
Lendio business loans
Finder Rating: 4.75 / 5: ★★★★★
Lendio business loans
Starting at 6%
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
OnDeck short-term loans
Finder Rating: 4.6 / 5: ★★★★★
OnDeck short-term loans
29.9% to 99.9%
625+ personal credit score, 1 year in business, $100,000+ annual revenue, active business checking account
A leading online business lender offering flexible financing at competitive fixed rates.
ROK Financial business loans
Finder Rating: 4.7 / 5: ★★★★★
ROK Financial business loans
Starting at 6%
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.
Fundera business loans
Finder Rating: 4.9 / 5: ★★★★★
Fundera business loans
7% to 30%
$50,000+ of annual revenue, 620+ personal credit score, in business for 6+ months
Get connected with short-term funding, SBA loans, lines of credit and more.

Compare up to 4 providers

What loan options are available for home healthcare services?

Your home healthcare service might benefit the most from financing designed to help with cashflow gaps. But you might want to check out other loan types if you’re looking for funding to hire new staff, a new vehicle or update your equipment. Let’s take a look at your options.

  • Line of credit. This option gives your business access to a credit limit that it can withdraw from as it needs — like a credit card with lower rates and higher monthly repayments. You can use it for any legitimate business expense — like if you want to create a website or attend a trade show to market your business — and can find both secured and unsecured options.
  • Equipment financing. Home healthcare services can find loans specifically designed to cover the cost of software, imaging, radiation therapy equipment and other devices necessary for your business. They also often come with leasing options, if you have a patient that needs a unique piece of equipment.
  • Auto loan. Need a van to transport patients or equipment? Buying a vehicle comes with a slightly different process than most loans, so you might want to look into business vehicle loans.
  • Commercial real estate financing. Need a new office — or want to expand the one you’re already in? This type of financing can walk you through the process of getting a new place.
  • Fixed-term loan. Have any large one-time expense on the horizon that isn’t covered by other loan types? You might just need a good old-fashioned business term loan. These come in a lump sum that you pay back plus interest fees over a set period of time, usually one to five years. You can use it for any legitimate business expense, like purchasing billing and scheduling software or hiring certified nurses for staff training.
  • Invoice financing. Here, your business can borrow against those outstanding invoices while patients and insurance companies argue over the bill. You typically pay it back as your invoices come in, though there may be a minimum monthly repayment plus an advance fee of 2% to 5%.
  • Invoice factoring. Rather than borrowing against your invoices, this option allows you to sell them to a third party for a percentage of the amount owed. It’ll take care of your loans from there and you won’t have to deal with the insurance companies or patients anymore. Healthcare providers might also want to look for medical receivables factoring or account receivables factoring.

Can I get invoice financing on Medicare and Medicaid payments?

Not usually. The process for getting an advance on Medicare and Medicaid payments is a little different than other types of invoice factoring or financing. That’s because Medicaid and Medicare typically don’t allow healthcare providers to sell a claim to a third party, meaning you can’t put a pending invoice up for collateral.

You do have a couple of options if your home healthcare service has patients enrolled in either of these programs. First, you can take out a line of credit, which doesn’t require business invoices as collateral.

Or, you can change your bank account to a sweep account — also sometimes called a managed account. A sweep account allows your factoring or financing company to access the account while it stays in your name. Why does this work? Medicare and Medicaid can only make payments to the provider. If the account’s still in the company’s name, it doesn’t care what you do with the funds after it makes a payment.

What common business expenses can I cover with financing?

  • Overhead costs. Payroll, marketing, transportation, medical supplies — you need these things to run your business and they cost money. Money you might not have when an insurance claim takes 90 days to go through.
  • Equipment. Like everything else healthcare related, medical equipment is expensive. A medical equipment loan or lease can make paying for it a lot easier.
  • Vehicles. Auto financing can help you cover the cost of a van, car or any other vehicle your home healthcare business needs.
  • Buying or expanding an office. Commercial real estate financing can help your business buy, lease or expand your home healthcare service’s office.
  • Consolidating debt. If your business is already paying off several debts, then you might want to consider moving them to one loan — ideally with more favorable rates and terms.

What will I need to apply?

While it depends on the type of financing you’re looking for, lenders typically ask for the following information and documents at a minimum:

  • Your personal information. Business owners are typically required to provide their name, contact information and Social Security number when applying for any business loan.
  • Government-issued ID. Lenders also ask to see the business owner’s driver’s license or state ID.
  • A voided check. Use a check from the business bank account you want to receive and repay the funds through.
  • Outstanding invoices. This one generally only applies to accounts receivable financing.
  • Bank statements. Lenders often ask to see the last three months of your business’s bank statements to get an idea of your current cash flow.
  • Your credit score. While some lenders ask for your business’s credit score, most rely on your personal credit score.
  • A business plan. Typically banks and credit unions like to see a business plan when you apply for funds. Online lenders sometimes ask to see one too, especially if you’re running a young business.

What challenges might I face getting financing for my home healthcare business?

When it comes to getting business financing, main challenge for home healthcare services can be the bookkeeping. You’re keeping track of invoices coming from insurance companies, patients and the government. If your patients pay with both cash and credit cards, this can make things even more complicated.

To improve your chances of getting approved, make sure your bookkeeping is spotless, regardless of what type of loan you’re applying for. You might want to consider using accounting software or even hiring an accountant to keep track of all your payments.

Home healthcare services can also have difficulty getting approved for term loans — which include most real estate, vehicle and equipment loans — if you don’t have a steady cash flow coming into your bank account. In this case, you might want to find ways to cover your costs with an option like accounts receivable financing.

5 tips to expand your home healthcare service

We gathered some business advice from Home Care Pulse, the home healthcare industry’s leading firm in satisfaction research and quality assurance, that could help you take your home healthcare service to the next level:

  1. Get involved in your community. This can mean anything from 5Ks, setting up a booth at the local farmer’s market or getting involved in any annual or regular community events. This helps put a face to your company and make your service’s name the first that comes to mind when your neighbors need home healthcare.
  2. Partner with other agencies. This might sound counterintuitive, but partnering with other agencies can actually help your business. You can buy supplies together to get greater discounts and refer each other patients the other partner can’t take on.
  3. Branch out your advertising. All of your money in online ads? Consider paying for a billboard or radio ad. By advertising in as many different mediums as you can, you’ll expand your audience.
  4. Take advantage of social media. Post on social media regularly and try to tell a story that people will be compelled to watch — even if they know it’s sponsored content.
  5. Know thy competition. Look at the other home healthcare providers in your area and try to find their weak points. If they don’t offer a certain service, offer it. If they have an incentive program, make a better one.

Bottom line

The fact is that most home healthcare services will need financing at some point. Invoice factoring and financing can help your business cover its bases, while other, larger loans can help your business pay for one-time expenses. Want to learn more about business loans? Check out our guide to learn how it all works and compare lenders.

Frequently asked questions

More guides on Finder

    Ask an Expert

    You are about to post a question on

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

    By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

    Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
    Go to site