A medical practice can be fully booked and still feel cash-tight. Payroll, rent, supplies, and expensive equipment are due now, while a large share of revenue arrives weeks later as insurer and patient-financing reimbursements. New practices and associates buying in feel it most. This guide covers how practices fund equipment, payroll, and the reimbursement gap without waiting on a slow bank.
Why practices run cash-tight
Reimbursement timing is the core issue: care is delivered today and paid weeks later by insurers, so cash flow lags the work even at a full schedule. Equipment is costly and banks underwrite slowly, weighing personal credit and collateral that a newer practice often lacks despite strong patient volume.
Funding options for practices
Revenue-based funding (a merchant cash advance) advances a lump sum against your practice deposits and is remitted as a small share of revenue — fast, and usable for equipment, payroll, buildouts, or bridging reimbursement cycles. Equipment financing fits a specific machine purchase, and a line of credit suits those who qualify. The advantage of revenue-based funding is speed and approval based on deposits rather than credit.
How approval works
Approval weighs your practice bank deposits and revenue, not your credit score or collateral, so a practice with steady collections can be evaluated regardless of credit history. Eligible applications can get a same-day decision with funding commonly within 24 to 72 hours. Not all applicants qualify.
The bottom line: practice funding should bridge the gap between treatment and reimbursement. Y Millennial Funding is a direct funder of revenue-based funding for practices doing $25,000 or more in monthly revenue — a small business loan alternative, not a loan.