Business Funding for Medical Practices and Healthcare Businesses

# Business Funding for Medical Practices and Healthcare Businesses

Medical practices, dental offices, urgent care centers, physical therapy clinics, and other healthcare businesses face a unique cash flow challenge: they provide services today but often wait weeks or months to be paid by insurance companies. Meanwhile, payroll, supplies, and equipment costs don't wait.

The good news: healthcare is one of the most fundable industries for alternative lenders.

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Cash Flow Challenges Unique to Healthcare

• Insurance reimbursements take 30–90 days
• High equipment costs (imaging, dental chairs, EHR systems)
• Compliance and licensing costs
• Hiring and retaining qualified staff
• Expanding to a new location or adding a specialty

Best Funding Options for Healthcare Businesses

Revenue-Based Financing

Lenders who specialize in healthcare businesses understand insurance billing cycles. Revenue-based financing provides capital upfront repaid as a percentage of your monthly deposits.

• Amounts from $25,000 to $2,000,000
• No collateral required
• Approval based on average monthly collections

Medical Equipment Financing

From digital X-ray machines to dental chairs to ultrasound equipment — equipment financing lets you acquire the tools you need without draining your cash reserves.

• 100% equipment financing available
• Preserves working capital
• Equipment serves as collateral

Business Line of Credit

Ideal for managing the gap between when you provide services and when you get paid.

• Flexible, revolving access to capital
• Only pay for what you use
• Great for seasonal patient volume swings

Typical Qualification Requirements

• 6+ months in operation
• $15,000+ per month in collections (gross)
• Active medical or dental license in good standing
• 3–6 months of bank statements

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