Conceding the famous saying “health is wealth”, we all try to make sure that our loved ones are provided with the best healthcare services so that they can live their lives to the fullest. With the increasing disposable income of the urban mass, the standards of living are constantly going higher in developed countries. Therefore, with a higher spending capacity, people, these days, don’t mind spending more on diagnostic centers, that offer immediate and the most efficient services, and feature medical equipment backed with cutting-edge technology. To cater to the high demand for healthcare services, clinics, hospitals, urgent care centers, hospitals, ambulatory surgery centers etc. are rapidly mushrooming in every nook and cranny of a city. But, to thrive in the highly-competitive healthcare industry, businesses need to, primarily, consider the customers’ conveniences and requirements. Hence, the healthcare centers need to be geared up with all the recently-launched technologies, and equipment and comprise teams of skilled medical professionals. However, like all other, businesses operating in the healthcare industry often fall short of working capital due to multiple reasons like equipment breakdown, staffs/doctors deficits, etc. This is when the need for extra funds is felt. The healthcare centers earn hefty amounts from customers looking for emergency medical services, and keeping a diagnostic center or clinic closed for even one unscheduled day can result in a substantial customer loss. Therefore, businesses operating in the healthcare industry need quick money to deal with any crisis. Merchant Cash Advances (MCAs), offering same-day approval and quick fund disbursement, often turn out to be the ideal financing option for industries like healthcare.
MCAs are quite different from traditional bank loans, which come with stringent credit scores and document requirements. MCAs offer flexible repayment terms and follow an automatic payment process. Technically, MCA lenders offer a lump sum in return for a percentage of the borrowers’ future daily/weekly credit/debit card sales. The payable amount gets automatically deducted from the borrower’s business account, daily/weekly. Also, the payable amount is usually more on the days that witness higher sales and less when the sales have gone done. Today, healthcare services are not so pocket-friendly and most people swipe credit/debit cards or use medical insurance to pay the bills. As MCAs are specially devised for those businesses, which primarily receive payments through credit/debit cards, healthcare centers can easily get MCA applications approved. Healthcare advances are crucial because they are used to save people’s lives or just to bring improvement to any severe medical condition. The repayment is, basically, a pre-decided percentage of those cash receipts. Hence, when the number of patients increases considerably, the borrowers can easily repay the advance faster.
Primary Benefits Of Choosing Merchant Cash Advances MCAs For Healthcare centers:
The healthcare services are appointment-based and hence, the cash inflow is never fixed. Most of the revenue of a healthcare center is often linked to re-payment by an insurance company. Eventually, this leads to lagging receivables. Also, medical companies often require extra funds to deal with a crisis. MCAs are known for being one of the quickest funding options, ideal for businesses looking for instant money.
Easy And Quick Application Process
Unlike bank loans, which come with long application processes and immense paperwork, MCAs require less documentation and can be applied online in a few minutes.
No Lending Restrictions
MCA lenders do not restrict the usage of the funds. Be it for repairing, maintaining the equipment, hiring more specialists or technicians or renovating the office space, MCAs can be used for any business need.
No Collateral Required
MCAs do not require the borrower to put up the business assets like equipment, property etc as collateral. Hence, with MCAs, the hard-earned assets of the business will be safe and the borrowers won’t have to lose them at the hands of the lenders.
Flexible Repayment Structure
MCA lenders do not demand a fixed monthly repayment amount. The payable amount depends on the day-to-day sales or cash inflow. With MCAs, the borrowers repay an agreed percentage of their daily or weekly credit/debit card sales, through ACH transfer to the lenders. When the borrower is not earning a generous amount, the payment will be less. Whereas, on days, when the income is substantial, the payment will be more, making the repayment of the entire amount faster.
For businesses operating in the healthcare industry, MCAs are considered one of the best financing options, considering the cash flow issues faced due to patients or insurance carriers making slow payments. Hence, healthcare centers can opt for MCAs to acquire quick funds for paying suppliers, managing payroll, and buying inventories as needed, without having to wait for incoming revenue.