How To Use A Merchant Cash Advance In Your Healthcare Practice
In healthcare, patients always come first, and securing working capital often takes a back seat. Your primary focus is providing immediate care and convenience for your patients. However, when equipment breaks down or staffing needs increase, this can directly impact your finances. Like any business, healthcare providers require working capital, and this is where a merchant cash advance can be highly beneficial due to its fast turnaround and minimal paperwork.
How Can a Merchant Cash Advance Benefit Your Healthcare Business?
- Instant Capital
In an appointment-based business, fluctuating cash flow is inevitable, especially when payments rely on insurance or medical aid reimbursements. Even if your business has healthy cash flow, additional capital is often needed, such as for upgrading equipment or renovations. - Simplified Application
Traditional bank loans can take months to acquire, requiring lengthy paperwork. A merchant cash advance from Merchant Capital can be approved in less than 48 hours, either over the phone or online. All you need are your bank statements, merchant statements, and your lease — no need for company registration documents or ID copies. The process is quick and easy, allowing you to focus on patient care. - No Risk to Credit or Assets
One of the major advantages of a merchant cash advance is that it doesn’t pose a risk to your credit or assets. Repayments are based on the financial performance of your business, and there’s no need to use assets as collateral. Unlike traditional loans, a cash advance functions as an advance on future sales and isn’t dependent on a high credit score. - Flexible Repayments
Merchant cash advances offer flexibility that traditional loans don’t. Repayments are aligned with your business’s turnover, meaning they fluctuate with your income. Payments can be made as a percentage of credit or debit card transactions or as a fixed daily or weekly rate, reducing financial strain during slower periods. - Lump Sum Payment
With a merchant cash advance, you receive the entire amount upfront in one lump sum, allowing you to make immediate improvements to your business without worrying about staggered payments.
What Can You Use a Merchant Cash Advance For?
There are many ways to effectively use a merchant cash advance, and it’s best to focus on growth-enhancing activities rather than simply filling financial gaps. Here are some common uses:
- Tests and Technologies: Staying current with technology is essential for accurate diagnoses and quality care. A merchant cash advance can help you service equipment, maintain supply levels, and stay on top of industry trends.
- Marketing: While word-of-mouth and repeat business are important, promoting your practice to a wider audience can bring in new patients. This might involve hiring marketing professionals or producing in-office materials to promote additional services.
- Liability Costs: In today’s legal environment, it’s crucial to be prepared for potential legal disputes. Having the capital to cover legal costs is essential.
The Bottom Line
Running a healthcare practice comes with many of the same working capital demands as a retail business. A merchant cash advance ensures that your patients are cared for and your business stays financially healthy. To learn how to access quick working capital for your healthcare business, contact Merchant Capital today.
