Bambi CEO Nirav Chheda talks with Kristan Parker, the National Sales Director of Koala Capital, about how and why to get financing for purchasing assets to grow and run a NEMT business.
See the full interview on YouTube.
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Podcast Show Notes:
Summary
This podcast episode features an interview with Kristen Parker, the National Sales Director at Koala Capital, discussing financing options for non-emergency medical transportation (NEMT) businesses. Here's a summary of the key points and takeaways:
NEMT Financing Focus
Kristen Parker revealed that 60% of Koala Capital's business is dedicated to NEMT financing1. This significant focus stems from the industry's growing importance and personal connection for Parker.
Benefits of Financing for NEMT Businesses
Parker emphasized several advantages of financing for NEMT businesses:
- Preserving cash flow for other business needs
- Building business credit
- Enabling expansion to meet new contract demands
She stated, "I always encourage my customers to use other people's money so that they can keep their cash flow reserves for hiring staff or marketing or advertising or general unforeseen expenses or circumstances"1.
Assessing Financing Needs
Parker highlighted the importance of revenue projections in determining financing needs. She advised NEMT business owners to project their potential earnings from new or existing business to assess if additional vehicles or equipment are required.
Application Process
Koala Capital offers a streamlined application process:
- Online application
- Soft credit inquiry (no impact on credit score)
- Term options provided
- Underwriting process
- Same-day or 24-hour approval for "application only" cases
Equipment Financed
Common equipment financed for NEMT businesses includes:
- Vehicles (often pre-built for NEMT purposes)
- Ramps
- Wheelchairs (including electric)
- Stretchers
- Vehicle conversions
Industry Outlook
Parker expressed optimism about the NEMT industry's future, stating, "As we are all aging, this particular industry is going nowhere but up. It is absolutely crucially necessary now, and it's only going to get more and more needed"1.
Success Story
Parker shared a success story of a startup that received financing for two NEMT vans, which helped launch their business during a challenging economic period in 2010.
In conclusion, this episode provides valuable insights into the financing options available for NEMT businesses and highlights the importance of strategic financial planning in this growing industry.
