Ways to Keep Your Cash Flow High for Your Medical Practice Using Merchant Cash Advances
If your business experiences cash flow shortage, a merchant cash advance could be the right solution. With this type of advance, you have a predetermined lump sum and pay the balance based on your future credit card sales. If your clients pay mostly with credit card, then this form of cash advance is a great fit. This is particularly true when it comes to medical practices, but you can say it of any small business.
Here is what you need to know about cash advances and medical practices.
They Are Flexible Financing
Merchant cash advances are some of the most flexible types of financing available. Unlike a traditional loan, you don’t have to make a fixed payment based on the terms. It is extremely flexible, especially when a patient’s payments end up delayed. The faster that your patients pay, the faster you can pay off the balance. In traditional financing, if a patient does not pay, then you may be in serious trouble.
They Help Grow Your Practice
If you want to grow your practice, you need to have working capital. With a cash advance, you receive the money quickly. Then, when you receive it, you are able to use it in any way that you need to. If you want to update your outdated equipment, you can, if you need to hire new medical technicians, this is also possible. As long as it is a need for your business, you can spend the money.
The Approval Process Is Easy
Financing is difficult in many cases. When you’re practice is first starting out, you may not qualify for traditional financing. You don’t have the business history to qualify. In this type of advance, your lender worries more about your credit sales, rather than your business history. This makes it easy for startup medical practices.
You Will Have Peace of Mind
When it comes to a cash flow shortage, it can be stressful. If a patient is late on a payment that dips into your funds for payroll, administrative expenses and rent. If you have a merchant cash advance, it gives you peace of mind. You know you’re safe, despite any complications.
When it comes to financing options, there are a lot of funding alternatives out there. Merchant cash advances happen to be some of the most flexible to help grow your business and give you peace of mind when cash flow is short.