Medical Practice Funding: How Physicians Get Working Capital Fast
Medical practices get funded through a merchant cash advance or ByzFlex revenue-based revolving capital — sized to your business bank deposits, not your billed claims or insurance receivables. Byzfunder funds directly from its own balance sheet, so there's one underwriting decision and one team that funds you. Qualifying practices can see funds in as little as 24 hours after approval.
- Byzfunder underwrites on deposited cash, not billed claims, A/R aging, or payer mix
- MCA is a purchase of future receivables priced with a factor rate — never a loan with APR
- FICO floor is 525 for MCA; no collateral required
- Nurses, medical assistants, front-desk, and billing staff get paid on a fixed schedule regardless of when a payer processes a claim
- Byzfunder funds directly — one application, one decision
Who Funds Medical Practices — and What They Look At
Physician practices are staff-heavy and payer-dependent, and that combination is exactly what most bank underwriting isn't built for. Byzfunder reviews files based on what actually moves through your business account:
- Business bank deposits, trailing 3–6 months. Commercial insurance and Medicare/Medicaid remittances, patient copays, and deductible payments all count as revenue underwriting reads.
- Time in business. Typically 1 year minimum for an established underwriting profile, though newer practices with strong deposit consistency can still qualify.
- FICO floor of 525 for MCA. A floor, not a target — practices above it move to full file review.
- No collateral requirement. MCA is unsecured; it's a purchase of a portion of your future receivables, not a loan against practice assets or real estate.
Byzfunder has funded $1.75B+ to more than 30,000 small businesses since 2019, including physician practices and other healthcare service providers, with amounts up to $500,000 depending on file strength.
Why a Medical Practice's Cash Flow Fits (or Challenges) an Advance
The core problem in a physician practice isn't patient volume — it's timing. A visit happens, the claim gets coded and submitted, and then the practice waits. Commercial payer processing typically runs 30 to 60 days; Medicare and Medicaid can run similarly or longer once prior-authorization requirements and documentation requests enter the picture. A claim that gets denied and has to be corrected and resubmitted can push actual payment well past 90 days from the date of service. Meanwhile nurses, medical assistants, front-desk staff, and billing/coding staff get paid on a payroll schedule that has nothing to do with when a payer settles.
That lag is compounded on the patient side. High-deductible health plans have pushed more of the bill directly onto patients, and patient A/R — copays, coinsurance, and deductible balances — collects slower and less predictably than insurance remittances do. A practice can be fully booked with a growing patient panel and still watch the gap between date-of-service and cash-in-bank widen, because more of each visit's total is now patient-collected rather than payer-collected.
On top of the reimbursement lag, practices carry costs that don't pause for any of this: locum tenens coverage when a physician is out, malpractice insurance premiums, medical supplies, EHR licensing and maintenance fees, and the up-front cost of bringing on an additional provider or opening a second location — all of which happen well before the added revenue those investments generate shows up as collected cash. A prior-authorization backlog or a payer's temporary processing slowdown can look like a revenue drop on paper while the schedule stays full and the clinical work is getting done.
A revenue-based advance or revolving facility is a structural match for that pattern. Repayment scales with deposits — a slower reimbursement stretch means a smaller pull — rather than staying fixed regardless of what a given month looks like, the way a bank term loan payment would.
What It Costs
MCA cost is a factor rate applied to the advance amount at funding — a fixed multiplier, not an accruing interest rate or APR. The total repayment number is locked in the day you're funded.
| Advance Amount | Factor Rate | Total Repayment |
|---|---|---|
| $25,000 | 1.20 | $30,000 |
| $50,000 | 1.30 | $65,000 |
| $100,000 | 1.35 | $135,000 |
These are illustrative, not a quote — actual factor rates depend on deposit consistency, time in business, and credit. ByzFlex, revenue-based revolving capital, is priced and repaid differently: you draw against an approved limit and repay weekly, which fits a practice managing an ongoing (not one-time) reimbursement lag — like a sustained payer processing slowdown — rather than a single expense.
How to Apply
- Submit 3 months of business bank statements.
- Provide basic practice information — entity type, specialty, single-provider or multi-provider group, time in business.
- Get a decision, often same-day for a complete file.
- Funds can land in as little as 24 hours once you accept an offer.
No claims-aging report, payer mix breakdown, or patient A/R ledger is required — underwriting is built around your actual deposit history.
Frequently Asked Questions
Do funders treat medical practices differently, and what happens if reimbursements slow down?
Yes. A retail business's bank deposits move roughly in step with its sales; a medical practice's deposits trail patient volume by 30 to 90-plus days because of insurance and Medicare/Medicaid processing, prior authorizations, and denial/resubmission cycles. Byzfunder underwrites against several months of deposit history for exactly that reason, so a temporary reimbursement slowdown reads in context rather than as a standalone red flag — a documented pattern matters more than any one month.
Can a physician practice get funded fast when insurance pays slowly?
Yes. Byzfunder reviews trailing business bank deposits, time in business, and credit — not billed claims, payer mix, or an A/R aging report. Application takes minutes with 3 months of bank statements, and qualifying practices can see funds in as little as 24 hours after approval. Funding is a purchase of your future receivables generally, sized to what's already showing up in deposits — it isn't structured around, or repaid from, any specific insurance claim.
Can I get funding for my medical practice with a 600 credit score?
525 FICO is Byzfunder's floor for MCA, so a 600 score clears that minimum on its own. It's a threshold, not a guarantee of approval — deposit consistency and time in business matter alongside credit, and a stronger deposit history can offset a lower score.
What working capital options does a clinic have without collateral?
MCA and ByzFlex are both unsecured — no equipment, real estate, or other collateral required, because MCA is a purchase of future receivables rather than a loan against assets. A clinic that's short on hard collateral but has a consistent deposit history can still qualify on the strength of that deposit pattern alone. Typical uses include payroll during a slow reimbursement stretch, bridging the cost of adding a provider, and covering supplies, locum coverage, or malpractice premiums.
We fund medical practices in all 50 states, directly from our own balance sheet — one underwriting decision, one team that funds you.
Byzfunder (ByzFunder NY LLC) funds small businesses directly from its own balance sheet. Advance amounts, factor rates, and repayment terms vary by applicant file and are not guaranteed. This is educational content, not an offer or commitment to fund. For California, term loans are arranged or made pursuant to the California Financing Law — License Number: 6031098.