AR Financing for Dental Practices
You have $85,000 in insurance claims submitted and pending. The insurance companies will pay in 30-45 days. But payroll is this Friday and lab bills are due. AR financing advances most of that receivable value now so you can cover operations without waiting for insurance payment.
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AR Financing for Dental Practices
Dental practices often have substantial insurance receivables pending payment. AR financing converts that waiting period to immediate working capital based on the value of your pending claims.
Insurance Payment Reality
Insurance companies typically pay claims in 30-45 days. Services performed in April generate claims paid in May or June. The timing gap creates cash pressure.
AR Value Recognition
Insurance receivables from major carriers represent real value. Delta Dental, MetLife, and other major payers have strong credit and predictable payment patterns.
Payer Mix Matters
AR financing terms depend on your payer mix. Strong insurance carriers enable better advance rates than practices with high self-pay AR.
Not Traditional Debt
AR financing is technically a sale or assignment of receivables, not a loan. Different balance sheet treatment than traditional debt.
The Dental Insurance AR Challenge
Insurance payment timing creates receivables that tie up practice cash flow.
Insurance Payment Delays
Insurance companies pay 30-45 days after claim submission. Services completed but cash not yet received.
Substantial AR Outstanding
Active practices accumulate $50,000-$150,000+ in pending insurance claims. Capital tied up waiting for payment.
Payroll and Lab Bills
Staff expects payroll. Labs expect payment. Insurance companies pay on their schedule, not yours.
Growth Capital Locked
Capital locked in AR cannot fund equipment, marketing, or expansion. AR is value that is not working for you.
Seasonal Variation
Production variation creates AR variation. December AR may not pay until February. Cash gaps accumulate.
Claim Denials and Delays
Some claims require additional documentation or resubmission. Extended delays on portion of AR.
Dental AR Financing Process
Convert insurance receivables to cash within days.
Setup
Complete application and provide AR aging report showing insurance claims.
3-5 days initial
AR Submission
Submit AR batches with claim documentation for insurance receivables.
Same day
Verification
We verify claims and payer quality.
24-48 hours
Advance
Receive 75-85% of AR value deposited to your account.
24-72 hours
Get Paid Now for Submitted Claims
AR financing converts pending insurance claims into immediate working capital. Stop waiting 30-45 days for insurance companies. Cover payroll, pay labs, and fund operations now.
Immediate Cash
Receive 75-85% of insurance AR value within 24-72 hours of submission.
Insurance Payer Based
Financing based on insurance company creditworthiness. Major dental carriers support excellent terms.
Not Traditional Debt
AR financing is a sale of receivables, not a loan. Different treatment.
Scale With Production
Finance more AR as production grows. Natural scaling with practice growth.
No Fixed Commitment
Finance AR batches when you need capital. No obligation for every claim batch.
Multiple Payers
Finance AR from multiple insurance carriers simultaneously.
Dental AR Financing Applications
Common scenarios where AR financing helps dental practices.
Insurance AR Bridge
Bridge waiting period for major insurance claims. Get cash for pending Delta, MetLife, etc.
Typical funding: $25K-$100K advanced
Payroll Coverage
Cover payroll while waiting for insurance reimbursement.
Typical funding: $15K-$50K advanced
Lab Bill Payment
Pay lab bills when due rather than when insurance pays.
Typical funding: $10K-$35K advanced
Equipment Deposit
Use AR value for equipment down payment while insurance payments process.
Typical funding: $20K-$75K advanced
Seasonal Bridge
Bridge December production to February payment. Smooth seasonal cash.
Typical funding: $30K-$75K advanced
Growth Capital
Unlock AR value for marketing or expansion without waiting for payment.
Typical funding: $25K-$100K advanced
AR Financing vs. Other Dental Capital
Understanding how AR financing differs from traditional financing.
| Feature | AR Financing | Working Capital | Line of Credit |
|---|---|---|---|
| Based On | Insurance receivables | Overall practice | Practice + credit |
| Creates Debt | No (sale of AR) | Yes | Yes when drawn |
| Advance Rate | 75-85% | N/A | N/A |
| Approval Speed | 24-72 hours | 3-14 days | 7-14 days |
| Scales With AR | Automatically | Fixed amount | Fixed limit |
| Payer Credit Impact | Primary factor | Minor | Minor |
| Best For | High insurance AR | General capital | Variable needs |
| Cost Basis | % of AR | Interest rate | Interest + fees |
Dental AR Financing Requirements
What qualifies dental practices for AR financing.
Insurance Payer Mix
Substantial portion of revenue from insurance rather than self-pay.
60%+ insurance
AR Quality
Clean AR aging with limited old or denied claims.
80%+ under 60 days
Major Carriers
AR from recognized insurance carriers with strong payment history.
Major dental carriers
Practice History
Established dental practice with consistent billing.
1+ year preferred
Claim Documentation
Proper claim submission and documentation processes.
Clean claims
Active Operations
Currently operating practice generating insurance claims.
Active practice
Dental practices with strong insurance payer mix and clean AR aging are ideal candidates for AR financing.
Real Results
Premier Dental Group
Multi-Dentist Practice, Texas
The Challenge
Premier had $120,000 in outstanding insurance AR at any given time. The 30-45 day payment cycle created constant cash pressure for payroll and lab bills despite strong production.
The Solution
We established AR financing facility advancing 80% of qualified insurance AR. Premier receives cash within 48 hours of claim submission.
The Result
Premier maintains smooth cash flow regardless of insurance payment timing. They routinely advance $60,000-$80,000 monthly and have expanded production knowing AR converts to cash quickly.
“We had strong production but insurance timing created constant cash pressure. AR financing means we get paid when we submit claims, not when insurance companies decide to pay.”
Dental AR Data
Statistics on dental insurance receivables financing.
Dental AR Financing Advantages
Why AR financing works for practices with substantial insurance claims.
Payroll Security
Cover payroll when due rather than when insurance pays.
Lab Relationships
Pay labs on time. Maintain relationships with quality dental labs.
No Balance Sheet Debt
AR financing is a sale of receivables, not debt.
Production Growth
Expand production knowing AR converts to cash quickly.
Payer Credit Leverage
Insurance company creditworthiness enables favorable terms.
Flexible Use
Finance AR batches when needed. No ongoing obligation.