Healthcare business loans that keep caregivers paid on time
Caregiver payroll goes out every shift, but Medicare pays home health in 30-day periods — and post-acute claims are denied at rates most industries never see. Financing bridges that gap.
No hard credit pull to see your options
Not sure which financing fits?
Speed varies by product. Working capital and lines of credit can fund within a day; SBA loans take 30–90 days.
No hard credit pulls
See what you qualify for without touching your credit score.
Payroll that can't wait on Medicare
A fast decision while a 30-day claim works through the system.
Guidance for home-based care
An advisor compares lenders and explains tradeoffs before you choose.
Why home health and care cash flow is different
Medicare pays your agency by the 30-day period — and denies a striking share of what you bill outright.
- Medicare pays by the period, not by the visit. A full 30-day period of care — and every caregiver shift inside it — happens before a claim for that period can even be filed, and clean claims still take roughly two weeks to pay after that.
- The paperwork clock is as unforgiving as the payment clock. A required Notice of Admission is due within 5 days of a certification period's start; miss it, and you lose a share of that period's payment for every day it's late.
- A denied claim doesn't mean the visit didn't happen. Post-acute and home-based care claims are denied at rates far above general medical billing, and Medicare Advantage plans have been found to deny this kind of care at several times their overall rate.
- Caregiver payroll doesn't wait to find out which claims get paid. Wages for the visit are due on the caregiver's schedule regardless of how the claim resolves — and caregiver wages are one of the fastest-rising costs in the business.
None of that is a problem to fix — it's the architecture of how post-acute and home-based care gets paid, the same on every case load no matter how well it's run. A fully-staffed agency can still be short on cash at exactly the moment growth is possible, because the money is real but tied up in a payment system built around periods and reviews, not visits.
Architecture like that produces the same handful of pressure points on almost every agency's books. Four of them show up most often — and each one has a different right answer.
Four binds that put home health and care agencies in a cash squeeze
The timeline above creates the same handful of pressure points across home-based and post-acute care. Each one has a different right answer — matching them correctly is most of the job.
Caregiver payroll runs every shift. Medicare runs on 30-day periods.
A full period of care — and every visit inside it — happens before a claim can even be filed, then clean claims take roughly two more weeks to pay.
Invoice factoring — advances most of an approved period's value now, so you stop financing Medicare's own payment cycle.
A denied claim still cost you the visit.
Post-acute and home-based care claims are denied at rates far above general medical billing — and the caregiver who delivered that visit still got paid.
A working capital loan — covers the shortfall a denial creates, repaid on a schedule that doesn't depend on an appeal.
Caregiver wages move faster than your rate schedule does.
Turnover and agency or travel coverage both run expensive, and neither waits for your next rate review or contract renewal to show up on payroll.
A business line of credit — draw when a staffing gap hits, repay, and keep the capacity open for the next one.
A new territory needs vehicles, equipment, and licensing before it earns anything.
Expanding into a new territory means vehicles for home visits and a starter DME inventory committed up front — before a single new-territory claim exists.
Equipment financing — spreads the cost of vehicles and equipment across the years they're in service.
One caution before you choose: the wrong instrument is expensive. Factoring solves nothing if the receivable isn't approved yet; short-term working capital used to buy a fleet of vehicles costs far more than equipment financing. The next section maps situations to the option that actually fits — or see what your agency qualifies for and let an advisor narrow it down with you.
Which financing is right for your situation?
There's no single best option — only the one that fits what's in front of you. Find the situation that sounds like yours, and see what a Fundur advisor would likely point you toward, and why.
"We bill Medicare and three commercial payers — all approved, all slow."
Invoice Factoring
Turns receivables you've already earned into working cash instead of waiting out the payment cycle.
Explore invoice factoring"A claim got denied. Payroll still cleared Friday."
Working Capital Loan
Covers the everyday operating costs now, repaid on a fixed schedule over a defined term.
Explore working capital loans"Agency coverage for one open shift and I'm already over budget."
Business Line of Credit
Reusable capacity you draw against as you need it and repay — interest only on what you use.
Explore lines of credit"We're opening a new territory and need two vehicles and a DME closet."
Equipment Financing
Spreads the cost over the asset's working life, and the equipment itself usually serves as the collateral.
Explore equipment financing"We're acquiring a smaller agency's book of patients."
Business Term Loan
A defined lump sum for a large, planned commitment, repaid in predictable fixed installments.
Explore term loans"We want to buy our office instead of renting it."
SBA Loan
Longer terms and lower rates spread a major investment across the years it actually earns.
Explore SBA loansWhat business financing costs — and how to compare offers
Pricing varies by lender, product, and your business profile, so any page quoting you a single rate is guessing. What you can control is knowing how offers are priced and insisting they're presented the same way.
Interest rate vs. factor rate
An interest rate is charged on a shrinking balance, so paying down early reduces what you owe. A factor rate is a multiplier fixed at signing — a 1.25 factor on $100,000 means $125,000 repaid whether you take the full term or not. Ask which one you're being quoted before anything else.
What moves your pricing
Time in business, monthly revenue and its consistency, credit profile, the amount requested, and whether the financing is secured. Equipment financing typically prices best because the machine itself is collateral; fast unsecured working capital typically prices highest.
Fees worth asking about
Origination fees (commonly 1%–5%), and the prepayment terms. On interest-based financing, paying early should save money; on factor-rate financing it often won't unless the lender offers an early-payoff discount. Payment frequency matters too — daily or weekly drafts pull cash faster than monthly.
Match the term to the asset
The most expensive mistake isn't a high rate — it's a mismatch. Repaying a ten-year machine over nine months strains cash flow no matter how good the rate looks. Short-term money belongs against short-term gaps you'll repay from an identified draw.
The one habit that protects you: insist on two numbers in writing from every lender — the total dollars you will repay and the APR — and compare offers only on those. Never on the factor rate or the monthly payment alone. It's also how Fundur presents every offer, so the comparison is honest from the start.
Rates, factor rates, and fees vary by lender and business. Your actual terms are disclosed in full before you accept anything.
Tell us about the job. We'll find the fit.
Most owners end up using more than one — a line of credit for one need, equipment financing for another. An advisor compares your real options across multiple lenders and tells you plainly when borrowing isn't the right move. Checking won't affect your credit.
How home health and care agencies put financing to work
Used well, financing isn't a distress signal — it's how agencies take the territory or the case load they'd otherwise have to pass on. Three situations that show up constantly, with the math behind them.
Bridging Medicare's 30-day payment period
A full 30-day period of care happens before a single claim can be filed, and clean claims still take about two weeks to pay after that — but caregiver payroll for that period is due on the caregiver's own schedule, not Medicare's. Invoice factoring advances most of the value of approved periods now, so payroll clears without waiting out Medicare's own cycle.
Absorbing a denial-driven shortfall
Post-acute and home-based care claims are denied at rates far above general medical billing — and Medicare Advantage plans have been found to deny this kind of care at several times their overall rate. The caregiver who delivered the visit is paid regardless of how the claim resolves. A working capital loan covers the shortfall a bad denial stretch creates, repaid on a fixed schedule rather than tied to an uncertain appeal.
Equipping a new care territory
Expanding into a new territory means a vehicle for home visits and a starter DME inventory — hospital beds, wheelchairs, oxygen equipment — committed before a single new-territory claim exists. Equipment financing spreads that cost across the years the vehicle and equipment stay in service, instead of draining the cash an agency needs to keep current territories staffed.
Figures are illustrative examples, not offers. The pattern holds, though: in each case the financing is sized to a specific, identifiable gap with a clear repayment source — which is exactly what a lender is looking for, too.
From application to funded, in three steps
Most of the process happens in minutes, and many home-based care businesses are funded within a day — without pulling anyone off the schedule to chase paperwork.
Tell us about your agency
Time in business, monthly revenue, payer mix, and what the money is for. Checking your options uses a soft credit pull, so your score isn't affected.
About 5 minutesCompare offers with an advisor
See what you qualify for side by side. A dedicated advisor walks through total cost and repayment against your claims cycle — and says so if borrowing isn't the right call.
Same dayGet funded
Accept the offer that works and funds are deposited to your business account — often the same or next business day, so payroll never slips.
As fast as 24 hrsHave three to six months of business bank statements ready and keep your legal business name consistent across your application, statements, and W-9. Incomplete or mismatched paperwork is the single most common cause of delay. Speed also varies by product: working capital and lines of credit can fund within a day, while SBA loans take 30–90 days and invoice factoring takes a few days to set up before advances begin.
Do you qualify?
Lenders set their own standards, but most weigh the same core signals. Because approval leans on revenue and cash flow rather than perfect credit, many home health and care agencies qualify on the strength of their census and payer mix alone.
Typical signals only — exact thresholds vary by lender and borrower. These are the minimums to see what you qualify for; requirements vary by product, and SBA loans and term loans generally ask for more time in business and a stronger credit profile.
What you'll need to apply
- 3–6 months of business bank statements — the primary way revenue is verified.
- Basic business details — legal entity name, EIN, trade, and time in business.
- Government ID and a voided check — typically required at funding, not to apply.
- For larger requests: business tax returns or a simple profit-and-loss statement.
What lenders look at in home health and care
- Payer mix. Medicare, Medicaid, commercial, and private-pay each carry different reimbursement speed and denial exposure.
- Certification and accreditation status. Medicare/Medicaid certification through an approved accrediting body is a real maturity signal.
- Caseload and census stability. A steady, sufficient patient census signals durable revenue the same way backlog does for a contractor.
- Caregiver retention. Staffing stability drives both quality ratings and payroll cost, so it's a genuine underwriting signal.
Healthcare business loan FAQs
How do I qualify for a healthcare business loan?
Most lenders look for steady monthly revenue (often $10,000+), at least six months in business, and a US business bank account. Recent bank statements matter most; a stable census and clean payer mix strengthen the file, since they show where repayment will come from.
What credit score do I need for healthcare financing?
Many options start around a 500 credit score. Stronger credit unlocks better pricing and larger amounts, but because approval weighs revenue and cash flow heavily, agencies with fair or rebuilding credit routinely qualify.
How much can I borrow for my home health or care agency?
Amounts typically range from $10,000 up to $5 million depending on revenue, time in business, and the financing type. Equipment financing and larger term loans reach the upper end; working capital and factoring are usually sized against monthly billing.
Can I get financing to cover payroll while a Medicare claim is processing?
Yes — that's the core use case. Invoice factoring or a working capital loan covers caregiver payroll while a 30-day period's claim works through Medicare's processing cycle, then is repaid as payment lands.
Can I finance vehicles or DME equipment for my agency?
Equipment financing covers vehicles for home visits and DME inventory such as hospital beds, wheelchairs, and oxygen equipment, spreading the cost across the years they stay in service.
How fast can I get funded?
Many home health and care businesses get a decision the same day and funding as fast as 24 hours. Speed depends on the lender, the product, and how quickly you provide documents — complete, consistent paperwork is the biggest accelerator.
Do I need collateral for a healthcare business loan?
Many working capital loans and lines of credit are unsecured, though a personal guarantee or general lien on business assets is common. Equipment financing is typically secured by the equipment itself, which is part of why it prices well.
Can financing help bridge a Medicare Advantage claim denial?
Yes. A working capital loan or line of credit covers the shortfall a denial creates, repaid on a fixed schedule that doesn't depend on the outcome of an appeal.
Is invoice factoring a good fit for a home health agency?
Often, yes — more so than most B2C industries. Medicare, Medicaid, and commercial-payer claims are approved, payable receivables, which is exactly the shape invoice factoring is built for.
Can I get a loan to open a new care territory or acquire another agency?
Yes — a business term loan commonly funds an acquisition, and an SBA loan suits buying an office instead of renting, with longer terms and lower rates for a long-horizon investment.
What's the difference between a term loan and a line of credit for a home health agency?
A term loan is one lump sum on a fixed schedule — good for an acquisition or a defined expansion. A line of credit is reusable: draw for a staffing gap, repay, draw again.
Does financing help with Medicare/Medicaid certification costs?
Yes. Certification, accreditation, and the initial clinical staffing that comes with it are real upfront costs before an agency can bill Medicare at all — a working capital loan or term loan is a common way to fund that runway.
Are interest payments on healthcare financing tax deductible?
Interest on business financing is often deductible when funds are used for business purposes, but rules vary by structure and situation. Confirm with your CPA — particularly on equipment, where depreciation treatment may also apply.
Financing for related healthcare industries
Tell us about your agency. We'll find the financing that fits.
See the healthcare financing options you qualify for in minutes — a soft credit check to start, and no obligation to accept an offer.
Fundur is a financing marketplace, not a lender. Fundur does not make credit decisions or guarantee approval, rates, terms, or funding times. A dedicated funding advisor can walk you through any option you receive. Final terms depend on lender approval.