Medical Businesses Benefit from Merchant Funding | Fora Financial Blog
How Medical Businesses Benefit from Merchant Cash Advances
March 20, 2018

How Medical Businesses Benefit from Merchant Cash Advances

Even for a successful medical business, cash flow can still become an issue. In fact, Small Business Trends identified it as one of the top 10 challenges that every business owner faces. As a medical business owner, you rely on expensive technology and equipment, in addition to highly skilled employees. Due to this, if you’re low on cash, you can be faced with serious obstacles. In some cases, cash flow issues could cause your business to close.

If your medical business is experiencing a cash flow shortage, a merchant cash advance could be the perfect solution. With a merchant cash advance, you’ll receive a predetermined lump sum and remit the balance based on your business’s future credit card sales.

Since many people use credit cards to pay their medical bills, a merchant cash advance can be a great fit for medical practices. In this post, we’ll explain how medical businesses benefit from merchant cash advances!

Flexible Financing

Since the cash advance you receive is remitted based on incoming credit card sales, the balance is repaid based on patients’ payments. In other words, the more credit sales you make, the faster you’ll remit the balance of your merchant cash advance.

This is can be useful for your business because, unlike a traditional loan, you’re not forced to make a fixed payment based on set terms. Consider the advantage of this flexibility when patient payments are delayed or when you’re dealing with insurance companies. With other financing in place, payment delays could pose serious threats to your business, but a merchant cash advance offers financial flexibility.

Grow Your Practice

There’s no getting around it; to grow your practice, you need working capital. With a merchant cash advance, you’ll receive cash quickly, and can spend it as you wish. Whether you need to replace outdated equipment, hire medical technicians, or want to offer new services, a merchant cash advance puts the money in your pocket to spend on whatever your needs are.

Less Stringent Approval Processes

For a new or growing business, financing is often a case of the chicken or the egg; you can’t qualify for traditional financing if you have no business history, but you can’t build a business history because you don’t have financing. A merchant cash advance is a great fit in this scenario because the lender will mainly be concerned with your credit sales. If you exhibit a solid track record of credit card sales, your business history bears less significance than it would to a traditional lender.

Additionally, the documentation required for a merchant cash advance is far less complicated and time-consuming. You’ll likely have to show receipts of credit card sales and sign an agreement, but typically no heavy paperwork is required.

Cash Flow Peace of Mind

Combine payroll, rent, and administrative expenses with a few late patient payments, and you could be faced with a major cash flow shortage. Luckily, a merchant cash advance can give you peace of mind that you’ll have a safety net should complications arise. In some cases, that seemingly small safety net could mean the difference between a successful business and an insolvent one.


When it comes down to it, any business that receives a significant portion of their revenue through credit card sales could benefit from a merchant cash advance. That said, as with any financial decision, carefully weigh your options before making any final decisions.

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].