Merchant Cash Advance for Medical Practices
Healthcare reimbursement is anything but predictable. A $180,000 insurance payment this week, $40,000 the next, then $95,000 as a batch of claims processes. MCA structures payments around your actual deposits so you pay more when cash flows in and less during gaps.
How much funding do you need?
Drag the slider or type an amount
How MCA Works for Medical Practices
Merchant cash advance for healthcare uses total bank deposits as the repayment mechanism, capturing insurance reimbursements and all revenue regardless of payment source.
Deposit-Based Repayment
Healthcare MCA takes a percentage of daily or weekly deposits rather than fixed amounts. This captures insurance reimbursements, patient payments, and all revenue sources as they arrive.
Factor Rate Structure
MCA uses factor rates rather than interest rates. A $100,000 advance with a 1.30 factor means you repay $130,000 total. The cost is fixed regardless of repayment speed.
Reimbursement Alignment
When large insurance batches hit your account, more goes to repayment. During gaps between payments, daily obligations drop. This natural flex matches healthcare cash flow patterns.
Speed vs. Cost Trade-off
MCA costs more than traditional loans but provides much faster access and higher approval rates. For urgent needs or situations where traditional financing is unavailable, speed and accessibility justify the premium.
When Fixed Payments Do Not Fit
Healthcare cash flow is inherently variable. Financing structures should acknowledge reimbursement timing reality.
Variable Reimbursement Reality
January deposits: $95,000. February: $210,000. March: $75,000. Insurance payment batches create wild variations. Fixed loan payments ignore this reality.
Payer Processing Gaps
Nothing for two weeks while claims process, then $150,000 hits at once. Traditional financing treats gap weeks the same as payment weeks.
Bank Declines
Your profitable medical practice does not fit the bank's algorithm. Healthcare complexity is flagged as risk regardless of your actual track record.
Speed Requirements
Equipment opportunity expires tomorrow. Credentialing costs are immediate. Banks do not operate on healthcare timelines.
Credit Complications
Past credit challenges from student loans, divorce, or personal situations. Strong current practice performance means nothing to traditional credit models.
Seasonal Patient Volume
Patient volumes vary seasonally. Summer slowdowns in some specialties mean reduced reimbursements but fixed payments remain.
Healthcare MCA Process
From application to funding in days, not weeks.
Application
Complete online application with basic practice information. Takes about 5 minutes.
5 minutes
Bank Statements
Upload 3-4 months of practice bank statements showing deposit patterns.
Upload
Offer Review
Receive your offer with clear terms: advance amount, factor rate, and holdback percentage.
24-72 hours
Funding
Accept and receive funds deposited to your practice account.
Same or next day
Capital That Matches Reimbursement Timing
Healthcare MCA provides working capital with repayment tied to your actual deposits. When insurance payments hit, you repay more. During gaps, you repay less. Capital that finally understands healthcare cash flow.
Deposit-Based Repayment
Payments calculated as percentage of deposits. Big reimbursement week means bigger payment when you can afford it. Slow week means smaller payment.
Fast Access
Most healthcare MCA applications receive decisions within 24-72 hours. Funding deposits same or next day after acceptance.
Credit Flexibility
Your deposit history and practice performance matter more than personal credit scores. Strong deposits can overcome credit challenges.
High Approval Rates
Medical practices with consistent deposits and real revenue get approved at much higher rates than traditional financing.
No Collateral Required
Future deposits serve as the basis for the advance. No need to pledge equipment, real estate, or personal assets.
Transparent Cost
Factor rate means you know total repayment upfront. No variable interest or compounding surprises.
Healthcare MCA Applications
Situations where MCA flexibility and speed matter for medical practices.
Equipment Emergency
Critical diagnostic equipment fails. Need $30,000 for replacement immediately to continue patient care.
Typical funding: $15K-$50K
Credentialing Bridge
New provider starts next month but credentialing takes 4 more months. Need capital now, cannot wait for bank timeline.
Typical funding: $50K-$150K
Equipment Opportunity
Quality refurbished imaging system at 50% discount. Deal expires in 48 hours. Banks cannot move that fast.
Typical funding: $40K-$150K
Payer Transition Gap
Switching EHR systems creates billing delays. Need capital to bridge temporary reimbursement gap.
Typical funding: $50K-$200K
Practice Growth
Opportunity to add service line or location but need working capital fast. MCA provides quick access to scale.
Typical funding: $75K-$300K
Payroll Bridge
Large insurance payment delayed by payer processing. Staff expects checks Friday.
Typical funding: $25K-$75K
MCA vs. Traditional Healthcare Financing
Understanding when MCA makes sense for your practice.
| Feature | Healthcare MCA | Bank Term Loan | AR Financing |
|---|---|---|---|
| Approval Speed | 24-72 hours | 30-60 days | 24-72 hours |
| Approval Rate | 70-85% | 25-35% | 60-75% |
| Payment Structure | % of deposits | Fixed monthly | When payers pay |
| Adjusts to Revenue | ✓ | ✗ | By AR batch |
| Credit Requirements | Flexible | Strict | AR based |
| Collateral | None | Usually | AR |
| Total Cost | Higher | Lowest | Per transaction |
| Best For | Speed/flexibility | Planned needs | AR heavy |
Healthcare MCA Requirements
MCA qualification focuses on deposit history and practice performance.
Bank Deposits
Consistent deposits showing insurance reimbursements and practice revenue.
$30,000+ monthly deposits
Practice History
Operating medical practice with established billing and collections.
6+ months minimum
Active Patients
Current patient flow demonstrating ongoing revenue generation.
Active patient base
Business Bank Account
Established practice checking with deposits reflecting operations.
3+ months history
No Active Bankruptcy
Cannot be in active bankruptcy. Past discharged bankruptcy may be acceptable.
No open BK
Positive Deposit Trend
Stable or growing deposit patterns preferred. Declining trends raise concerns.
Stable or improving
MCA qualification emphasizes deposit history over personal credit. Strong, consistent deposits can overcome credit challenges.
Real Results
Dr. Amanda L.
Dermatology Practice, San Diego CA
The Challenge
Amanda's practice had opportunity to purchase an advanced laser system at 40% discount, but the deal required payment within 10 days. Her bank needed 45 days minimum for equipment financing. The laser would generate $15,000 monthly in new cosmetic procedure revenue.
The Solution
We evaluated her $95,000 average monthly deposits and approved a $75,000 MCA with a 1.28 factor rate. Daily holdback of 11% meant payments averaged about $350 daily.
The Result
Amanda purchased the laser within the deadline, capturing the discount. Cosmetic laser procedures generated $14,000 monthly in new revenue from month one. The MCA repaid in about 8 months while the laser continues generating returns.
“The bank wanted 45 days for a decision. The laser deal expired in 10 days. MCA let me capture an opportunity that would have passed while waiting for traditional financing.”
Healthcare MCA Data
Industry statistics on MCA for medical practices.
Why Medical Practices Choose MCA
Strategic advantages of deposit-based financing for healthcare.
No Payment Shock
Slow reimbursement month means lower payments automatically. Never face peak-month payments during slow periods.
Preserve Credit Lines
MCA does not tie up bank credit lines or require personal guarantees on real estate.
Speed for Opportunities
Equipment deals and practice opportunities have short windows. MCA moves at healthcare speed.
Credit Rehabilitation
Successfully completing an MCA builds track record for better financing options over time.
Simple Process
Bank statements and application. No tax returns, no collateral documentation, no lengthy underwriting.
Know Your Cost
Factor rate means total cost is fixed and known upfront. Budget accurately.