How to Finance a Nursing Home

Starting a nursing home can be a rewarding business, but it can also be costly; knowing how to finance a nursing home is essential if you want to make it a reality. Starting a nursing home will involve several expenses, including property, medical equipment, furniture, kitchen equipment and working capital to cover employee wages and other expenses until you are able to turn a profit. Most people will need to raise additional capital in order to start a nursing home. Although this can be time-consuming, it should not be too difficult if you follow these steps.

Instructions

• 1

  Make an investment of your own into the business. Making your own investment helps to attract other investors. People are more likely to invest in a business if others have and they are unlikely to invest in a business if the owner has not. You may need to borrow money on your personal credit in order to have access to the necessary cash. Consult a bank about loans, mortgages and other options that may be available to you.

• 2

  Search for government grants and funding programs. The U.S. Department of Health and Human Services offers a variety of grants for health care related businesses. Visit their website at hrsa.gov and browse the available grants. The available opportunities change on a regular basis, so you should check back frequently.

• 3

  Visit your local bank and apply for a business loan. A business loan is different than a personal loan, which you may have already obtained. A business loan is a loan made directly to the business for business activities. You will need to demonstrate to the bank that your plan for a nursing home is solid and that they are likely to recoup their loan. You may be required to personally guarantee the loan or offer collateral, such as property owned by the business.

• 4

  Seek out investors. You should search for individuals who may be interested in investing in a nursing home business. Targeting people in the medical community can be a good idea because these people will understand your business and may recognize the market for it.

• 5

  Offer clients the ability to pre-purchase spots in your nursing home. If you have a solid plan and anticipate starting your nursing home at a set point in time, you can begin allowing people to reserve a spot in advance. This will give you access to interest-free capital to help pay your start-up costs.