When it is difficult to find funds for a healthcare business, there are MCAs!
When it comes to finding a source of funds for businesses, there are some industries and businesses that might find it more difficult than the others. Though there are several options to rely on when you gather your capital, small businesses and startups might always have some difficulty to bear.
There are some industries that are considered high risk when it comes to receiving funds. This makes it difficult for them to get loans through the conventional channels. In the past, this made it difficult to get loans for high risk businesses but now the scenario has changed. The medical industry is not one that is usually deemed a high risk business. So if you wish to set up a clinic or a hospital, you might not usually find it very difficult to find a good source for funds. But then there are times when even the medical industry and healthcare businesses have trouble in their cash flow. At this juncture, if the business is looking for some funds, it would not be easy to an ordinary bank loan or any other conventional loan.
Factors causing tighter cash flows in healthcare businesses:
A larger team to handle:
When opening a clinic, even a small one, there would be the need to establish a team of medical experts, doctors and nurses. This would need an office and the corresponding overhead in the form of the salaries and the office space expenses would add.
In the case of rehab centers or therapy clinics, there would be the need for setting up not just an office but also a space for the actual therapy sessions. In such cases if your funds are restricted or slow, then it would cause a serious issue.
These are high-end establishments that would need larger funds. Depending on the levels of diagnosis offered, you would have to invest huge sums on the medical equipment like medical scanning and imaging devices, X-ray set up, test labs and more. There might be the need to upgrade your equipment at any point of time. This would also be a scenario that demands quicker and easier funds.
Home based treatment providers:
There are healthcare businesses that provide healthcare solutions by offering equipment for home based treatments. Hospital bed setups, wheelchairs, oxygen equipment and others that are used for patients given medical care at home would be delivered by these businesses. These would be paid by the hospitals or by the patients directly. They would be waiting for the payments and even during the slower cash flow, they would also have to be ready to add equipment to their inventory to be ready as and when a demand arises.
Obsolescence is common:
Like with every other industry the technology involved in healthcare industry is evolving at a rapid pace. This means that these businesses are prone to the obsolescence of the setup that they have. This would require these businesses to continuously upgrade their set up to meet all the medical standards and modernize and expand the business.
Merchant cash advance for NSF situations in healthcare:
When the healthcare business is waiting for payments from the customers and the other sources, there might be several situations where there are non-sufficient funds. During high NSF situations, getting a bank loan would be pretty difficult. Unsecured loans are not the only other alternatives here. You could also go for merchant cash advance in such situations.
Merchant cash advance providers who cater to high risk businesses and NSF cases would specialize in this area with their experience in handling businesses big and small with credit scores of all values. This is why merchant cash advance can be beneficial for
Dentists who wish to establish their own clinic
Chiropractors or orthopedics who wish to set up their individual therapy clinic
Optometrists who wish to invest in new equipment
General practitioners who wish to expand their clinic or hospital
MCAs would also be useful for those who need 2nd, 3rd or 4th position loans
The merchant cash advance provider would make the whole process easy. This would be because the processing times for MCAs are shorter than conventional sources. The approval rates would also be significantly high as against the bank loans that also come with more complicated and longer process times. There is no upper cap on the amount you could receive. This would give you the flexibility to expand and choose any equipment you want as you would be able to receive a large sum through merchant cash advances.
The merchant cash advance lenders are easier to work with. This would make it easy for those in medical practice as they can continue with their practice while the whole process falls in place. The MCAs can also be used to cover the maintenance cost as well as the cost of employing more members in the team.