Can Medical Businesses Benefit From a Merchant Cash Advance?

When it comes to getting working capital quickly, companies in some industries may find fewer options or not know which ones will work to meet their needs. A medical business, for instance, may not know whether they qualify for a merchant cash advance, what one is or how to secure one. While lenders try to offer various options to each business, it is still a good idea to research which ones are the best for your type of company.

What Is It?

A merchant cash advance is a sum of money you borrow from a lender and repay with a portion of your daily card transactions. For most medical companies, both copays at the time of service and regular payments on an outstanding balance since most patients use a credit card for payments. Most agreements with lenders will have the remittance automatically deducted from your account daily or weekly, giving you more flexibility with fewer bills to remember.

What Benefits Does It Offer?

One of the most apparent benefits of a cash advance is the ability to pay bills, invest in growth projects, and ease your cash flow on your timeline. Most advances are approved and funded the same day, giving you faster access to the cash you need than a traditional bank loan or other financing options.

Since this type of cash advance is remitted with a portion of your card transactions, the more you make in a day, the faster it is repaid. The flexibility of these payments offers another benefit to most companies, not having a fixed monthly repayment amount. You will not have to add another bill to your schedule or work your cash flow around a large repayment.

How Do You Secure One?

Lenders offering this type of cash advance often have online applications with secure document upload platforms to make the application process more manageable. The typical process involves filling out an application, uploading proof of daily transactions, and signing an agreement on terms. This agreement will have the percentage of each transaction used for remittance, how often payment is made, and the size of your advance.

When you are looking for a way to fund a growth project quickly, pay an unexpected expense or ease your cash flow for a bit, a merchant cash advance may be the best fit for your medical company. This type of advance is repaid with a percentage of your daily card transactions and deducted automatically from your account, giving you the flexibility of paying what you can without another monthly payment on the books.