In healthcare, the main focus is always on the patient, not securing funds. People expect immediate service and this industry is about convenience to the patients. If your equipment breaks down, the doctor is sick, or additional staffing is required, there needs to be a fast solution to find the working capital to make the necessary improvements.
That’s why it’s essential that any financial process is quick, efficient, and non-disruptive.
One way a medical practice can acquire fast funds is through a merchant cash advance (MCA). It’s a superb alternative to traditional funding options.
Unlike a loan, a merchant cash advance is based on a percentage of the business’s future sales returns. Here are a few ways in which a MCA can benefit a healthcare office today:
#1 – Instant Capital
Many organizations have a shifting cash flow schedule. This can be particularly vulnerable in an appointment-based service like healthcare, where money is never certain. Much of the revenue of a healthcare practice can be linked to re-payment by an insurance company which can lead to lagging receivables.
Although the medical office might have solid cash flow, there are certain times when a little extra is needed. If equipment goes down, patients can’t be seen. If a critical employee is sick, staffing must be accommodated; an individual’s health does not wait for administrative tasks.
A merchant cash advance with Rose Capital Funding can deposit funds into your account within 24-48 hours of approval. You can have access to working capital to upgrade equipment in an emergency, ensure staffing is covered, or any other essentials.
#2 – Smooth Application Process
A busy medical office has no time for a lengthy application process. A typical bank loan will take 30-90 days and during that time, your service to patients can suffer. People might be waiting longer or have to reschedule if imaging equipment is broken. It’s super inconvenient for all parties, and more importantly, risks you losing your clients.
A MCA means same-day approval with less documentation. It gives the time back to patients and the space for physicians to worry about what’s important (hint: it’s not a broken x-ray machine).
#3 – Zero Lending Restrictions
No one should tell you how to spend money in the office. If you need funds to send the treatment coordinator and nurses to a retreat, then that’s just as good as new equipment. Staff morale needs to be present to keep patients happy.
Traditional funding options often come with spending restrictions. You have no freedom on how to apply the cash on hand. Especially since the bank is not in the trenches of your daily operations and has no true grasp of the industry’s challenges.
A MCA with Rose Capital Funding will give you the working capital needed and you will be 100% in control of how the funds are used to improve the business.
#4 – Cash Advance with No Risks to your assets or credit
What’s attractive about a MCA is there is never any risk to assets or credit. Payback is predetermined based on your established healthcare business.
Unlike a loan, assets are not used as collateral and a MCA does not require a high credit score. Rather, it’s seen as an advance on future sales.
#5 – Repayment Flexibility
We aim to create a repayment schedule that is mutually beneficial and doesn’t put a strain on your business.
The following are the common repayment structures for a MCA:
- Percentage of daily credit card transactions
- Fixed daily or weekly rate
#6 – One Lump Sum
MCA funding is always paid in one lump sum. You get everything you applied for upfront to handle what needs to be paid immediately. As a business owner, it’s important to have a full understanding of financial options for funding. A merchant cash advance is a wise choice when you run a healthy medical office. There’s little risk and all the reward.
If you need some assistance, the funding specialists at Rose Capital Funding are happy to answer any additional funding questions you have. They can guide you step-by-step through the application process, determine if it’s a good fit, and get you the cash needed to keep patients happy, healthy, and full of life.