Physical therapy clinics run on a reimbursement gap: therapists and staff are paid weekly, but insurance and Medicare reimburse 30 to 90 days later, and reimbursement-rate cuts keep margins under pressure. Equipment, build-outs, and a second location all require capital before the collections catch up. This guide covers how PT clinics fund payroll, equipment, and expansion.
Why PT clinics run cash-tight
Clinics are payroll-heavy with a long reimbursement lag, value sits in equipment and contracts rather than collateral, and reimbursement-rate cuts make financials look stretched. Banks can't fund the payroll gap that opens as a clinic grows faster than reimbursements arrive.
Funding options for PT clinics
Revenue-based funding (a merchant cash advance) advances a lump sum against your collections and is remitted as a small share of revenue — usable to cover payroll through reimbursement lags, buy rehab equipment, build out or expand, and open a second location. The advantage is speed and approval based on collections rather than credit or collateral.
How approval works
Approval weighs your clinic's collections and deposits, not your credit score or collateral, so a clinic with steady revenue can be evaluated despite credit blemishes. Eligible applications can get a same-day decision with funding commonly within 24 to 72 hours. Not all applicants qualify.
The bottom line: PT funding should keep payroll covered and fund growth while you wait on reimbursement. Y Millennial Funding is a direct funder of revenue-based funding for physical therapy clinics doing $25,000 or more in monthly revenue — a small business loan alternative, not a loan.