Well-managed cash flow is vital to the success of any business, including those in the medical industry. These companies require expensive equipment and new technologies. They also employ highly skilled professionals. Therefore, any mismanagement or shortage in cash flow can be detrimental. However, these companies can take advantage of merchant cash advances to cover their cash flow needs.

Merchant Cash Advance

Your business can receive lump-sum funding based on its future credit sales. Because so many people pay their medical bills using credit cards, merchant cash advance financing is a viable option. When these transactions are leveraged, you can gain funding for payroll, new equipment, expansion, or any other expense your company faces.

Credit Doesn’t Matter

Most financing requires that a company have a positive credit history. They often still require collateral in the form of physical assets. However, merchant cash advances do not require established credit or collateral, except for future credit sales. If you pay off the advance early, you may even receive discounts or other benefits. In addition, there is no limit to what you can borrow if your credit sales match the loan amount.

Can Be Used for Any Expense

The cash from these advances can be used for anything. You can expand your company by hiring more employees or purchasing more equipment. You can upgrade your computer systems. You can renovate your building. You may also use the money to improve your cash flow, pay your employees’ salaries or expand your marketing. If it is a business expense, you can use this cash without justifying the expense.  

Offers Flexibility

Flexibility is vital in the medical industry. You may experience periods when you have lots of patients and those patients pay their bills right away, and you may experience periods when your patient load is lower, or your clients pay their invoices late. Cash advances allow you to boost your cash flow when you need it, such as when you are awaiting patient payments, and you can pay off these loans when you are flush with cash. In addition, because you aren’t required to make fixed payments due to set loan terms, you can pay more or less of the balance depending on y our current cash situation.

If you receive any significant portion of your income through credit card sales, you can gain flexibility and boost your cash flow by leveraging these receipts in merchant cash advances.