Cash Advances for the Healthcare Industry
The health care industry has unique needs when it comes to financing. In part, this is because of its particular method of billing and account management. No other sector bills almost exclusively through insurance and almost none have to manage the issue of copays in the same way. As a result, you will need to make sure you have access to financing that is built for the industry when seeking health care advances. Luckily, there are more and more options opening up every day, many of them well-proven in other industries.
For organizations that take a lot of copays through credit card transactions and have enabled electronic payment online, merchant cash advance services offer a rare opportunity to get much-needed working capital whenever your cash flow needs a little help. MCAs work well in many public-facing industries because they are built to be flexible and to take the needs of a business that has a lot of public traffic through it. When it comes to clinics, practices, and physical therapy offices, they can give you the resources needed to set up new locations, bring in new equipment, or manage daily expenses during the slow part of a billing cycle.
If you’ve been working on balancing your cash advance resources, the MCA has a unique place because it can be approved quickly and reused after it is paid off. In fact, working with a lender to establish an ongoing relationship can lead to even faster approvals. Health care advances are crucial because you need cash to keep serving patients, and when you use an MCA, the repayment is an agreed-upon percentage of those cash receipts, so when you bring in new patients with that expanded capacity, you can also get your advance paid off faster.
The best part is that in the health care industry, the percentage of your income that generally comes through copays tends to be small, so you can get the working capital you need without having to worry about an advance against the larger billing amounts that come in through insurance providers. This gives you a way to manage one part of your income and leverage it when needed, and also the freedom to pursue financing that uses your accounts receivable as needed for other purposes. The result is powerful, and it can make health care advances much more effective for many businesses. Don’t wait to find out how this service can fit into your credit portfolio.