7 Smart Ways to Boost Cash Flow for Your Senior Living Facility
Privately owned senior living operators are navigating tighter margins, rising staffing costs, and higher interest rates. Whether you operate an assisted living, memory care, or independent living facility, here are seven strategic ways to reduce financial pressure, free up capital, and reinvest in your growth:
1. Lower Your Interest Rate
If your current facility loan or business debt carries a higher interest rate, refinancing could reduce your monthly payments significantly. Even a small rate drop—like 0.5%—can translate into thousands in annual savings, especially on loans over $1 million.
2. Extend the Term of Your Debt
Short-term or high-payment debt can put pressure on your monthly cash flow. Refinancing into a 20–25 year loan using conventional or SBA 504 financing spreads out payments, lowers your obligations, and gives you room to invest in staffing, marketing, or upgrades.
3. Refinance Seller Notes or Private Loans
If you used seller financing or a private lender to acquire your facility, you may be locked into high rates and short terms. Replacing that debt with long-term, low-interest financing can ease your cash flow burden and improve overall profitability.
4. Refinance an SBA 7(a) Loan with a Better Option
Many senior housing owners used SBA 7(a) loans for acquisitions or renovations. If that loan is now outdated, refinancing it into a new SBA 7(a), SBA 504, or conventional product could improve your rate, extend the term, and free up capital for day-to-day operations or new initiatives.
5. Convert Your SBA 7(a) into an SBA 504 Loan
If your SBA 7(a) was used for real estate or significant equipment, you may be eligible to convert to an SBA 504 loan. The 504 offers long-term, fixed-rate financing—ideal for stabilizing monthly debt service and boosting available cash flow.
6. Acquire a Competitor or Expand Your Facility
Looking to grow? Acquisition and expansion loans are available for senior housing operators looking to buy out competitors, add a memory care wing, or build new locations. These loans can fund real estate, goodwill, renovations, and working capital.
7. Add Revenue-Generating Services
High-margin services not only improve care but also generate additional income. Consider:
• Premium private-pay units or upgraded suites
• Memory care, physical therapy, or adult day services
• Concierge amenities and transportation services
• Respite care for short-term stays
These upgrades enhance your offering while increasing revenue per resident.
Know another operator who could benefit from these ideas? Ask about our referral program—we offer strong incentives for introductions!
