Acquisitions
Whether you are acquiring a business backed by real estate or an asset-based business that does not own the bricks and sticks, our funds can provide the necessary capital to close. For long-term care/senior housing companies, the funds can be used separately or in combination to provide the financing. For example, to the extent that a borrower needs 100% financing and wants one lender/investor, our funds provide all the capital needed.
The products can be prepaid and are therefore a good alternative to REIT financing, since the borrower is able to use the funds as a bridge and keep the upside. If the borrower has a relationship with a senior lender and/or has its own equity, our products work well with other lenders'/investors' products.
Finally, if there is assumable senior debt in place that is attractively priced or can not be prepaid, such as FHA insured debt or conduit debt, our mezzanine and equity funds can be used to layer on top of the existing senior debt.
For asset-based healthcare companies that are looking to acquire, our mezzanine and/or equity funds are excellent complements to A/R lenders or other senior-term lenders or as standalone financing. As standalone financing, our funds provide all of the capital necessary to complete the acquisition. This works particularly well when the eligible A/R base is too small for commercial A/R lenders or if senior financing is unavailable for the asset class. Our equity funds are redeemable at a stated IRR, so there is a way to repay our investment, while you capture the upside.
All funds can close quickly to meet your acquisition timetable. With our knowledgeable staff, we can deliver a commitment in under 30 days and in some cases can commit and close in that time period.
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Refinancing/Recapitalization
As with the acquisition scenarios, you can use our funds in a variety of combinations to refinance existing debt, provide cash out or buy out a partner.
For facility-backed businesses, we offer bridge and term financing. For example, a borrower can "Bridge to HUD" using our senior and mezzanine funds by leveraging the facility to 85% LTV or higher. The borrower can free up otherwise trapped equity (since HUD will not allow cash out financing), use the cash today and then refinance with HUD at a later date (usually within a year). The end result is that the borrower has monetized equity at a very inexpensive cost on a non-recourse basis (HUD terms). Another example is to use our mezzanine or equity funds to layer on top of existing debt to monetize equity.
For asset-based companies, we offer term financing as well as equity investments which allow for a refinancing of existing debt, recapitalization, working-capital financing, partnership buy-out or other corporate purposes.
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Leasehold Financing
Using either our mezzanine or equity funds, borrowers can use their leasehold interests as collateral to make acquisitions, renovate, construct or for other corporate purposes.
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Construction Financing
Both the mezzanine and equity funds can be used to finance construction and renovations. The funds allow a borrower to source a construction lender for the senior mortgage and can be used for pre-development needs, construction/renovation, as well as working capital for the start-up period.
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Accounts Receivable Financing
As a business owner, you need ways to keep up with growth and meet increasing cash needs. The accounts receivable financing program offered by Contemporary Healthcare Capital lets you establish a line of credit secured by your accounts receivables.
Our accounts receivable financing program is designed for healthcare business owners who need a more flexible borrowing availability than traditional A/R lenders provide. Our accounts receivable financing provides cash advances on eligible receivables without using a lock-box or factoring relationship. Our credit line fuels your growth by supplementing your cash needs and fully leveraging your current assets.
Our program offers the following benefits:
- Supplemental borrowing capacity
- Increased cash flow - turn existing receivables into cash today to fund business growth.
- Better liquidity - leverage receivables to fully maximize working capital.
- Expertise from industry leaders.
- Non lock-box accounts – the receivables flow into your regular operating account
- No monthly audit fees
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Other Creative Ideas
Our funds can be used in a variety of creative ways. We have financed captive insurance programs, the start-up of pharmacies, bought out venture capital partners, financed turnaround situations and funded accounts receivable needs. Please call to discuss the possibility of using our funds to help you meet your financing needs.
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