ABOUT THE AUTHOR
When growth into three new Texas cities required more usable capital, the financing had to leave enough working capital in hand after the payoff.
Allied Home Health is a Texas-based home health care company serving behavioral health, assisted living, hospice, and daycare needs. The business had built steady growth through word-of-mouth referrals and was preparing to expand into three additional cities, with annual revenue projected to rise from $8M to $10M.
The Situation
The expansion plan was already in motion. New markets meant new locations, more operating complexity, and more working capital pressure before the added revenue had time to settle.
The business also faced a common challenge in healthcare: Medicare reimbursement gaps. Cash did not always arrive on the same timeline expenses did.
At the same time, an existing lender balance was limiting how much capital Allied could actually put to work.
The Challenge
Allied needed a structure that would pay off the prior lender and still leave enough capital to support expansion.
The existing balance was about $300K. The original offer was $1M, but that would not leave the business with the amount it needed in hand once the payoff and fees were addressed.
The expansion required a larger facility and a structure that could pay off the prior lender while preserving working capital.
Our Approach
National started with the practical question first: how much capital did the business need to net in order to support expansion?
From there, the structure changed.
Working with underwriting, the offer was increased from $1M to $1.1M through a term loan on balance sheet. That allowed Allied to pay off the previous lender and still net $755K, slightly above the $750K target the business needed to move forward.
The financing was structured around what the business could actually deploy.
The Outcome
With the new structure in place, Allied was able to:
- Pay off the prior lender
- Net $755K in usable capital
- Expand into three additional Texas cities
- Support growth despite Medicare reimbursement timing gaps
- Move from a smaller lending facility into one better matched to the business
Annual revenue is now projected to grow from $8M to $10M.
Why This Works
A higher approval amount only matters if the business can use the capital after existing obligations are addressed.
For Allied, the better outcome came from structuring around the net amount needed to execute the expansion plan. That meant paying off the old balance, increasing the facility, and making sure the remaining capital matched the real demands of growth.
Why National Business Capital
We work with businesses that have already built momentum and need financing aligned with where they are headed next.
That means looking past the headline number and focusing on what the capital will actually do once it lands: pay off a prior lender, create breathing room, and support the next stage of growth.
Ready to put the right capital structure behind your next expansion?