Starting a Non-Medical Home Care Agency: Financing Tips for New Franchisees
If you’ve ever thought about starting a non-medical home care agency, today’s post is for you. Read on as we crunch the numbers for senior care startups and share some financing tips for prospective franchisees.
Can I afford to start this franchise on my own?
Starting a non-medical home care agency isn’t cheap, but it’s not prohibitively expensive either. The senior care sector offers relatively low start-up costs compared to other industries.
To determine whether or not you can afford to buy a senior care franchise on your own, first complete a thorough inventory of your assets to determine your net worth. You might be surprised to learn how much you’re worth; people generally have more assets than they realize.
When conducting this inventory, be sure to include saving accounts, equity in any property or real estate, retirement accounts, recreational equipment, vehicles, collections, and other investments. Selling these assets or using them as loan collateral is very common.
Don’t forget to factor in your liabilities as well. This list ought to include everything you owe, including mortgage payments, bills, ongoing charges, auto loans, and so on. Subtract your liabilities from your assets to complete your personal inventory.
Once you’ve completed your inventory, compare the value of your assets with the costs of starting an Executive Care franchise. If you’ve come up short, don’t worry – you’ve got options.
3 Financing Options for New Franchisees
If you’re planning on starting a non medical home care agency or senior care franchise, consider the following four sources of start-up income:
- Family and friends. Family and friends are a great source of financing when starting a non-medical home care agency. Not only can you circumvent the standard approval process, but you’ll often have any interest fees waived.
This option is not always practical, however. Many families will be unable or unwilling to help finance your franchise, and problems can arise when family and finances intersect.
- Partners. Starting a non-medical home care agency with a partner can effectively halve your start-up costs. However, this comes at a price. Most partnerships also involve splitting the profits and decision-making power, which can be a nonstarter for some people.
- Lending institutions. If your franchise dream depends on the decision of a lending institution, there are some steps you can take to increase your odds of being approved.
Generally speaking, lenders will assess your credit rating based on three factors: stability, income, and track record. The majority of lenders look for stable employment history, long-term residence, and any other indicators that you’re committed to finishing what you start. If you lack these signs of stability, then be sure to prepare an explanation before your consultation.
Counterintuitively, most lenders don’t look at income as a make-or-break factor in approving a loan. Lenders are more interested in your ability to live within a certain earning bracket than they are with the amount you’re making. Any outstanding debts tell your lender that you struggle in this regard. Poorly managed personal finances are a major red flag, so be sure to pay off whatever you owe.
Finally, your lender will take a long look at your track record paying off past loans and financial obligations. Any history of repossessions, unpaid tickets, and so forth should be squared away before you apply for your loan.
Starting a Non-Medical Home Care Agency with Executive Care
Compare costs online or drop us a line for a free consultation at https://www.executivehomecarefranchise.com.