Allied Home Health
Expansion underway. Capital structured to support it.
A home healthcare company needed capital to expand into three new Texas cities. Learn how National Business Capital structured a $1.1M term loan that refinanced existing debt and provided $755K in working capital for growth.
When growth into three new Texas cities required more usable capital, the financing had to leave enough working capital in hand after the payoff.
The Client
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 $10M to $13M.
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 existing lender and still leave enough capital to support expansion.
The balance was about $300K, tied to a cash advance. 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 lender while preserving working capital.
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 deal was structured as a $1.1M term loan on the balance sheet, built around what the business actually needed to net. That allowed Allied to pay off the lender and still net $755K, slightly above the $750K it needed to keep the expansion on track.
The financing was structured around what the business could actually deploy.
With the new structure in place, Allied was able to:
- Pay off the existing 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 $10M to $13M.
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 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 the existing lender, create breathing room, and support the next stage of growth.
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