Revenue-Based Financing for Medical Practices
March deposits $85,000. April: $145,000. May: $70,000. Healthcare reimbursements arrive in batches based on payer processing schedules you cannot control. Revenue-based financing ties repayment to your actual deposits, so payments naturally match your cash flow reality.
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How Revenue-Based Financing Works for Healthcare
Revenue-based financing ties repayment to your total bank deposits rather than fixed monthly amounts. This creates natural alignment between your obligations and your actual reimbursement timing.
Deposit-Based Mechanics
A typical revenue share of 7% means 7 cents of every dollar deposited goes toward repayment. A $120,000 deposit month means $8,400 in payments. A $60,000 deposit month means $4,200. Payments automatically match revenue.
Healthcare Application
Insurance reimbursements arrive in batches based on payer processing schedules. Medicare pays differently than commercial payers. Revenue-based financing handles this perfectly: large reimbursement weeks pay more, gaps between batches pay less.
Payer Mix Alignment
Practices with variable payer mix see variable cash flow. Medicare-heavy months look different than commercial-heavy months. Revenue-based payments adjust to whatever your actual deposits are.
Total Revenue Recognition
Revenue-based financing captures all deposits: insurance reimbursements, patient payments, and every revenue source. Complete picture of your practice revenue.
Why Fixed Payments Hurt Healthcare Practices
Healthcare cash flow is inherently variable. Financing structures should acknowledge reimbursement timing reality.
Reimbursement Batch Timing
Nothing for two weeks while claims process, then $95,000 arrives in one batch. Fixed payments ignore this reality. Revenue-based payments match it.
Payer Processing Variation
Medicare pays in 14-30 days. Commercial payers take 30-45 days. Medicaid stretches longer. Your cash flow varies by payer mix each month.
Denial and Rework Impact
Denied claims reduce expected revenue for a period. Fixed payments do not adjust. Revenue-based payments naturally decrease.
Seasonal Patient Volume
Some specialties see seasonal variations. Summer slowdowns or winter surges create variable revenue that fixed payments ignore.
New Provider Revenue Ramp
New physicians build patient panels gradually. Revenue grows over time. Payments should match this growth trajectory.
Payer Contract Changes
Adding or losing payer contracts changes cash flow patterns. Flexible payments adapt; fixed payments do not.
Revenue-Based Financing Process
From application to funding in days, with payments that match your deposits.
Application
Complete application with practice information focusing on revenue patterns and deposit history.
10 minutes
Bank Statement Review
Upload 3-6 months of bank statements. We analyze deposit patterns, payer timing, and consistency.
Upload statements
Revenue Analysis
We structure financing based on your deposit patterns and revenue capacity.
24-72 hours
Funding
Accept offer and receive funds. Repayment automatically tracks with your deposits.
Same or next day
Financing That Matches Reimbursement Timing
Revenue-based financing calculates payments as a percentage of your deposits. When insurance batches hit, repayment accelerates. During gaps between payments, payments naturally decrease. Capital that finally understands healthcare cash flow.
Automatic Revenue Alignment
Payments calculated as percentage of deposits. Heavy reimbursement month means more payment when you can afford it. Light month means less obligation.
All Revenue Counts
Insurance reimbursements, patient payments, and every deposit type contributes. Complete revenue picture.
Payer Timing Friendly
Whether Medicare pays fast or Medicaid pays slow, your payments adjust to actual cash received.
No Payment Shock
Never face peak-month payment during a slow period. Your obligations automatically scale with your actual revenue.
Fast Approval
Most applications receive decisions within 24-72 hours. Funding deposits same or next day after acceptance.
Credit Flexibility
Deposit history and revenue patterns matter more than credit scores. Strong deposits overcome credit challenges.
Revenue-Based Financing for Healthcare
Situations where revenue-aligned payments provide the right solution.
Variable Reimbursement Practice
Payer mix creates variable monthly cash flow. Revenue-based payments match whatever your actual deposits are.
Typical funding: $50K-$200K
Credentialing Bridge
Need capital while new provider credentials. Repay as new provider revenue builds over time.
Typical funding: $75K-$200K
Equipment Investment
Purchase equipment with payments that flex with the revenue the equipment generates.
Typical funding: $40K-$150K
Seasonal Practice
Allergy, dermatology, or other seasonal specialties with variable patient volume.
Typical funding: $50K-$150K
Growth Capital
Scale practice capacity. Repayment accelerates as new services generate deposits.
Typical funding: $75K-$300K
Payer Transition
Bridge revenue gaps when changing payer contracts or adding new insurance panels.
Typical funding: $40K-$125K
Revenue-Based vs. Other Financing
Understanding when revenue-based financing fits best.
| Feature | Revenue-Based | Term Loan | AR Financing |
|---|---|---|---|
| Payment Structure | % of deposits | Fixed monthly | When payers pay |
| Adjusts to Revenue | Automatically | Never | By AR batch |
| Revenue Recognition | All deposits | For qualification | Specific receivables |
| Payer Timing Alignment | Natural | None | By claim |
| Speed | 24-72 hours | 1-3 weeks | 24-48 hours |
| Credit Focus | Revenue patterns | Credit score | Payer quality |
| Best For | Variable revenue | Steady revenue | AR heavy |
| Typical Share | 5-10% of deposits | N/A | 1-4% per AR |
Revenue-Based Financing Requirements
Qualification focuses on deposit history and revenue patterns.
Monthly Deposits
Consistent bank deposits showing reimbursements and practice revenue.
$40,000+ monthly average
Practice History
Operating medical practice with established billing and collections.
6+ months minimum
Deposit Consistency
Regular deposits even if variable in size. Predictable patterns even with payer variation.
Consistent patterns
Business Bank Account
Active practice checking showing reimbursements and normal activity.
3-6 months statements
No Active Bankruptcy
Cannot be in active bankruptcy proceedings. Past discharged bankruptcy may be acceptable.
No active BK
Positive Revenue Trend
Stable or growing deposits preferred. Declining trends raise concerns.
Stable or growing
Revenue-based financing emphasizes deposit history and patterns over traditional credit metrics.
Real Results
Dr. Karen M.
Allergy & Immunology Practice, Phoenix AZ
The Challenge
Karen's allergy practice had dramatic seasonal swings: $110,000 monthly deposits during spring allergy season, dropping to $45,000 in summer. A term loan with fixed $7,500 monthly payments was difficult during slow summer months.
The Solution
We restructured her financing with revenue-based terms at 8% of deposits. Spring months paid around $8,800 monthly. Summer dropped to $3,600. Payments matched her actual cash flow.
The Result
Karen eliminated seasonal cash flow stress. The financing repaid naturally through high-season deposits without straining summer operations. She has since used revenue-based financing for equipment purchases.
“Allergy season pays the bills for the whole year. Fixed loan payments ignored this reality. Revenue-based financing finally made sense for a seasonal specialty.”
Healthcare Revenue-Based Data
Industry statistics on revenue-based financing for medical practices.
Why Medical Practices Choose Revenue-Based
Strategic advantages of revenue-aligned financing.
Stress Reduction
Stop worrying about making fixed payments during slow reimbursement periods. Payments automatically adjust.
Payer Protected
Slow Medicare processing, Medicaid delays, or commercial payer issues reduce revenue and payments together.
Denial Buffer
Claim denials reduce expected revenue. Revenue-based payments naturally decrease without penalty.
Seasonal Alignment
Specialties with seasonal patient volumes see payments match their natural revenue cycles.
Growth Aligned
As your practice revenue grows, repayment accelerates. Financing scales with success.
Simple Math
Percentage of deposits is easy to understand and predict based on expected reimbursements.