A practice can be profitable on paper and still feel short on cash.
Claims have been submitted. Patients have been seen. But insurance payments may take weeks to arrive, while payroll, supplies, rent, and equipment costs keep moving.
For independent dental, medical, physical therapy, and specialty practices, this timing gap can make routine operations harder than they need to be. Working capital financing through a purchase of future revenue can help bridge the gap, with remittances tied to collections when the agreement is structured that way.
See Why Insurance Payments Can Lag Behind Expenses
The reimbursement clock starts well before money reaches your account:
- A clinician provides care and documents the visit.
- The practice submits a claim.
- The payer reviews the claim and may request corrections or additional information.
- The practice posts the payment, or follows up on a denial, underpayment, or delay.
Meanwhile, clinical staff still need to be paid. The practice still needs gloves, instruments, medication, and other supplies. EMR costs and equipment maintenance do not pause while a claim is being reviewed.
A 30-to-90-day planning window is useful for many reimbursement cycles, but timing varies by payer, claim type, state rules, and whether the claim is clean. Build your forecast around your own payer history rather than an industry average.
Account for denials and resubmissions
A denied claim can add another round of work: identify the issue, correct the record, resubmit or appeal, then wait for a new decision. Missing details, prior authorization, eligibility, coding, and documentation can all affect the process.
For a small practice, each follow-up can consume staff time that could otherwise go to patient service and operations.
Plan for credentialing delays
A newly hired clinician may be ready to see patients before payer credentialing and enrollment are complete. Until the practice can bill under the applicable payer arrangement, expected visits may not translate into near-term collections. Credentialing timeframes and billing rules vary, so track each payer’s process and verify effective dates.
Understand How a Purchase of Future Revenue Can Help
Revenue-based financing is structured as a purchase of a defined amount of future business revenue. A practice receives an agreed amount of capital upfront. In return, the purchaser receives the agreed portion of future revenue described in the contract.
When the agreement bases remittances on a percentage of actual revenue, the dollar amount can move with collections. Higher when revenue is stronger and lower when it softens. The exact calculation, revenue definition, and conditions depend on the agreement. Review them closely before deciding whether the structure fits.
This can give a practice working capital while it waits for eligible claims to turn into deposits. It is not a substitute for correcting claim issues or improving follow-up. It can help cover the operating gap while those processes continue.
For a plain-language overview of the structure, read Revenue-Based Financing Explained: What a Purchase of Future Revenue Actually Means for Your Business.
See if a funding option fits your practice
Match the Capital to a Specific Practice Need
Before pursuing small business growth capital, name the gap you need to cover. A clear use helps you estimate how much capital is useful, and how it may support the practice without adding more than it can manage.
Consider whether working capital could help you:
- Meet clinical payroll while insurance payments are still pending.
- Restock EMR-connected supplies and everyday essentials without delaying patient care.
- Manage denials and resubmissions while payer follow-up is underway.
- Cover a credentialing-related revenue gap while a provider’s enrollment is being processed.
- Replace essential equipment using working capital from a purchase of future revenue, rather than letting a failed device disrupt appointments.
Equipment replacement can be particularly urgent for dental offices, imaging practices, and physical therapy clinics. If a treatment chair, diagnostic device, or therapy unit fails, the impact can include canceled appointments and lost collections, not just a repair bill.
Build a Funding Plan in Four Steps
1. Map your cash calendar
List weekly obligations such as payroll, rent, supplier invoices, and recurring software costs. Then compare them with expected payer deposits. This helps pinpoint when the gap occurs, rather than relying on total billed charges alone.
2. Review receivables by status
Separate clean claims awaiting payment from denied claims, appeals, corrected submissions, patient balances, and credentialing-pending activity. These are not all equally predictable sources of cash. Review aging by payer and follow up on overdue items.
3. Estimate the actual shortfall
Identify the amount needed to bridge operating expenses until expected collections arrive. Use conservative timing assumptions, especially if claims need correction or payer rules are unclear. Capital should support a defined need, not become a substitute for revenue-cycle improvements.
4. Read the purchase terms carefully
Confirm the amount delivered to the practice, the total future revenue purchased, how remittances are calculated, and what happens if collections change. Ask how the agreement treats different deposit sources and review any other obligations or conditions. Consider having your accountant or attorney review the terms.
Check the Fit for Revenue-Based Financing for Small Business
This structure may be worth exploring when a practice has ongoing revenue, a temporary timing gap, and a clear plan for using capital. It may be less suitable if collections are highly uncertain or the practice cannot comfortably support the terms.
The key question is practical: Will the capital help the practice keep operating or capture revenue while reimbursements catch up, and do the remittance terms make sense for its cash flow?
Funding ranges from $10,000 to $500,000, with decisions potentially available in 24–72 hours, sometimes the same day. Eligibility, terms, and timing depend on your business.
The process starts with a quick online form, no documents needed to start, and a dedicated funding advisor can help you review options. A credit profile is one part of the picture; business revenue and overall performance also matter.
Apply for practice funding options
Keep the Revenue Cycle Moving
Capital can help manage timing. Strong billing operations can help reduce the timing gap itself.
Assign clear ownership for claim submission and follow-up. Track denials and resubmissions by reason. Confirm credentialing status before scheduling around expected in-network collections. Review receivables regularly so a claim does not sit unnoticed while expenses pile up.
The goal is to protect patient care and keep the practice steady, not to wait passively for deposits. With a clear cash forecast, disciplined claims follow-up, and a carefully reviewed purchase of future revenue, a reimbursement delay may be easier to manage.
Explore your options with Avyron Capital
What Is Revenue-Based Financing for a Medical Practice?
It is a funding arrangement structured as a purchase of a defined amount of future business revenue. The practice receives capital upfront, and remittances follow the terms in the agreement. When remittances are based on a share of revenue, the dollar amount can change with collections.
How Long Can Insurance Reimbursement Take?
Timing depends on the payer, state rules, claim type, and whether the claim is complete and accepted. Some practices plan around a 30-to-90-day window, but denials, resubmissions, and other issues can extend the wait. Check your own payer-specific history and requirements.
Can a Practice Use the Capital for Payroll or Supplies?
A practice may use working capital for business expenses such as payroll, supplies, and operating costs, subject to the specific agreement. Confirm permitted uses and all terms before accepting an offer.
What Should a Practice Review Before Accepting an Offer?
Review the amount delivered, the total future revenue purchased, the remittance calculation, the definition of revenue, and any other agreement conditions. Consider your cash forecast and ask a qualified financial or legal professional to review terms if needed.
Avyron Capital is not a lender and does not provide loans. All financing products offered by Avyron Capital are a purchase of future revenue. Terms, conditions, and availability of funding are subject to underwriting approval and may vary based on business performance and other factors. Please consult a financial or legal professional before entering into any financial agreement.