Industries

Working Capital and Merchant Cash Advance for Medical and Dental Practices

Practices wait 30 to 90 days or longer on insurance reimbursements while payroll, rent and equipment payments come due every week. Apex Funding Services compares bridge funding and merchant cash advance offers from multiple funders with one application, so a slow reimbursement cycle does not stall your practice. We are a broker, not a lender.

Featured option: working capital through a merchant cash advance

A merchant cash advance provides a lump sum in exchange for a share of future receipts. For practices it is sized on monthly collections and deposits, so it can work when a bank line is not available quickly. Practices with strong credit may also qualify for cheaper term loans, and we will show you both.

Why owners choose it:

  • Speed: decisions often within 24 to 48 hours, with funding soon after approval

  • Sized on revenue: offers are based mainly on your deposits, not just your credit score

  • Repayment matched to how you get paid: split funding or lockbox for card-heavy businesses, so payments rise and fall with sales, or a fixed ACH payment for businesses paid by check, ACH or invoice

  • Limited paperwork: usually bank statements and a short application, with no real estate collateral. Most funders do ask for a personal guarantee of performance

Common uses:

  • Payroll during reimbursement delays

  • New equipment, chairs, imaging and lasers

  • Build-outs and second locations

  • Marketing to grow cash-pay services

How repayment works: split funding, lockbox or ACH

  • Credit card split funding: your card processor automatically sends an agreed percentage of each day's card batch (the holdback) to the funder before the rest settles to you. Payments rise and fall with sales.

  • Lockbox funding: card receipts are deposited into a controlled account, the funder's share is taken out and the balance is passed to you. Used when your current processor cannot split payments.

  • ACH: a fixed daily or weekly debit from your business bank account.

Fit for medical practices: depends on payer mix. Insurance-based practices usually repay by fixed ACH, because card receipts are only a small share of revenue. Cash-pay practices such as cosmetic, dental, veterinary and elective care with heavy card volume can be a good fit for split funding or lockbox.

Split funding usually means processing with a processor that works with the funder. Before switching, check for early termination fees on your current processing agreement and compare total processing cost as part of the offer.

Bridge funding

Bridge funding is short-term capital that covers the gap until money you are expecting arrives, such as a customer payment, a loan closing or your busy season. It is typically structured as a short-term advance or loan and repaid when the expected cash comes in. Common bridge situations:

  • Covering payroll while insurance reimbursements catch up

  • Bridging until an SBA or practice acquisition loan closes

  • Credentialing gaps when a new provider is not yet billing

  • Cash flow after switching billing companies or EHR systems

All your options at a glance

We are not tied to one product. Here is how the main options compare for medical and dental practices:

  • Merchant cash advance (working capital): fastest and easiest to qualify for, and usually the most expensive. Best for short-term needs with a clear payback.

  • Revenue-based financing: similar to an advance, repaid as a percentage of revenue, sometimes at a lower cost for stronger businesses.

  • Short-term working capital loan: a fixed amount with fixed daily or weekly payments over 6 to 24 months.

  • Medical receivables financing and AR lines: a strong fit, advancing against insurance receivables from Medicare, Medicaid and commercial payers.

  • Revolving line of credit: well suited to practices with solid collections history and owner credit.

  • Equipment financing: terms matched to the life of the equipment.

  • Asset-based lending: for larger groups, surgery centers and labs with substantial receivables.

Traditional alternatives

If your business has the history and credit for it, traditional financing is usually the cheapest money available:

  • SBA 7(a) loans: up to $5 million for working capital, equipment, expansion or buying a business, with terms up to 10 years for working capital and equipment

  • SBA 504 loans: long-term, fixed-rate financing for real estate and major equipment

  • Bank term loans: a lump sum repaid monthly over several years

  • Bank lines of credit: draw and repay as needed, paying interest only on what you use

  • Bank equipment loans: the equipment itself secures the loan

These cost less, but they take longer, often 30 to 90 days, and usually require two or more years in business, good personal credit, tax returns, financial statements and sometimes collateral. If you qualify, we will tell you, and we can refer you to SBA and bank lenders. A common approach is to use a merchant cash advance or bridge funding now and refinance into bank or SBA financing once it closes.

For medical and dental practices: Banks actively lend to licensed providers. Practice acquisition loans, SBA 7(a) loans and bank lines of credit often carry some of the best terms available to small businesses.

Credit card processing

We can set up or review patient payment terminals, card-on-file, online bill pay and payment plans, with transparent pricing such as interchange-plus. Ask about integration with your practice management software.

Processing is provided through our processing partners. Send a recent processing statement and we will show you your effective rate and fees, with no obligation to switch.

Before you sign

Speed costs money. A merchant cash advance is a purchase of future receivables, not a loan, and it usually costs more than bank financing. Before you accept any offer, we walk you through:

  • The amount you receive and the total payback

  • The factor rate, holdback percentage or daily and weekly payment

  • How reconciliation works if your sales drop

  • Fees deducted at funding

  • How a new advance fits with any advance you already have. Stacking too many positions is the fastest way into a cash flow crisis, and we will tell you if it is a bad idea

Approval, amounts, rates and terms are set by the funder. Submitting a request does not guarantee approval.

What funders look at

  • Monthly collections and payer mix

  • Accounts receivable aging and claim denial rates

  • Time in business and provider credentials

  • Owner credit and existing debt

Documents to have ready

  • Last 3 to 6 months of business bank statements

  • Accounts receivable aging by payer

  • Owner ID and a voided business check

Ready to see what you qualify for? Start your application or call (516) 474-3776. One application, multiple funders, no obligation to accept.