By The advisor team
A claim can go out quickly. The insurance payment may take much longer.
Meanwhile, payroll is due. Rent is due. Clinical supplies need replenishing. And a denial or credentialing delay can push expected collections further out.
For an independent practice, that mismatch can turn a busy schedule into a cash-flow squeeze. Here’s how to plan for the gap, and where revenue-based financing may fit.
Understand the 30-to-90-day cash-flow gap
The time between submitting a claim and receiving payment varies. It depends on the payer, the claim, the practice’s contract, and whether the provider is fully credentialed and loaded in the payer’s system.
A clean claim may move through faster. But a request for more information, a coding issue, a denial, or a resubmission can stretch the timeline. The 30-to-90-day range is a planning window, not a guaranteed payment schedule.
Denials are a real part of the administrative workload. Industry surveys consistently place claim denial rates in the double digits, and each denial can mean delayed payment plus another round of staff time.
That delay doesn’t pause the practice’s expenses. Clinical staff still need to be paid. EMR fees, rent, utilities, supplies, and vendor invoices keep coming.
Map the pressure points before cash gets tight
A clear view of timing helps practice owners respond earlier. Start with these four steps.
1. Track when claims become cash
Review your accounts receivable by age, not only as one total. Separate claims that are newly submitted from those awaiting information, denied, resubmitted, or delayed by credentialing.
Monitoring days in accounts receivable is standard practice-finance advice for exactly this reason.
Why it matters: A large A/R balance can look reassuring, but it does not tell you when the cash will actually arrive.
2. Flag denials and resubmissions
A denial can mean another round of staff time, corrected information, and follow-up before reimbursement is resolved. Create a consistent process to assign each denial, record the reason, and track the next action.
Why it matters: Without a clear work queue, claims can sit unnoticed while payroll and operating costs keep moving.
3. Check credentialing status
New clinicians can add patient capacity, but credentialing and payer-system updates may affect when claims can be processed. Confirm status and effective dates with each payer before building revenue forecasts around a new provider.
Why it matters: A full schedule does not guarantee prompt reimbursement if a clinician’s enrollment is still in progress.
4. Forecast operating costs alongside collections
List upcoming payroll, rent, EMR expenses, supplies, and planned equipment replacement. Then compare those due dates with realistic collection timing, not just the date a claim was submitted.
Why it matters: The goal is to spot a cash gap before it forces a rushed decision.
Match working capital financing to the timing problem
Working capital financing can help a practice manage expenses while reimbursement is still in process. One option to evaluate is revenue-based financing for small business.
With this structure, Avyron Capital purchases an agreed portion of a business’s future revenue in exchange for capital now. Remittances are calculated as an agreed share of revenue, so the amount can move with collections rather than follow one fixed payment amount. The agreement defines how revenue and remittances are calculated, review those terms carefully before accepting.
That timing can matter when insurer payments arrive unevenly. A practice may need to meet payroll and keep supplies stocked before several claims finish processing.
Put capital toward the gap, not just the urgency
Before pursuing small business growth capital, connect the requested amount to a specific operating need and a realistic cash-flow plan.
- Cover payroll for clinical staff. Keep wages on schedule while reimbursements are pending.
- Replenish EMR-related and clinical supplies. Avoid putting essential day-to-day operations on hold.
- Replace essential equipment. Address a necessary replacement without waiting for every outstanding claim to clear.
- Support hiring and patient capacity. Plan for the staffing and operating costs required to serve more patients, while accounting for credentialing and payer setup time.
Estimate the size and duration of the gap. Review which claims are pending, which have been denied, and what revenue is already committed to operating costs. Capital can create breathing room; it does not resolve a denial or guarantee when a payer will pay.
See how revenue-based financing works
Review the terms against your real collection cycle
Flexibility only helps if the structure fits the practice’s actual cash flow. Before moving forward, make sure you understand:
- The amount of capital the business will receive.
- The portion of future revenue being purchased.
- How the remittance is calculated and how collections affect it.
- How the agreement treats slower periods and changes in revenue.
- Any conditions, fees, or other obligations in the written terms.
Do not base a decision on a best-case reimbursement timeline. Use actual collection patterns, including denials and resubmissions, to assess whether the arrangement fits.
The Wednesday companion guide to bridging the insurance reimbursement gap offers additional context for medical practices considering this approach.
Apply with a clear plan
Avyron Capital offers funding from $10,000 to $500,000, with typical review timelines of 24–72 hours. Timing and availability depend on the business and its review. You can begin with a short online form (no documents are needed to start) and a dedicated funding advisor can help explain the next steps.
Prepare a simple snapshot of your practice: monthly revenue, expected collections, near-term operating costs, and the amount you need to bridge the gap. A clear request makes it easier to evaluate whether the capital and remittance structure fit your plans.
Frequently asked questions
How long can insurance reimbursement take?
Timing varies by payer, claim quality, contract, and credentialing status. A clean claim may be processed faster, while a denial, request for information, or resubmission can extend the cycle. Treat 30–90 days as a planning range, not a promise about when a particular claim will be paid.
How can a practice manage payroll while claims are pending?
Start by mapping payroll dates against expected collections and reviewing aged claims. If a shortfall remains, working capital financing may be one option to evaluate. Consider the amount needed, expected cash flow, and full terms before accepting an agreement.
How do remittances work with revenue-based financing?
Avyron Capital purchases an agreed portion of future business revenue in exchange for capital now. Remittances are based on the agreed revenue share, so amounts can move with collections rather than being one fixed payment. The written agreement explains how revenue and remittances are calculated.
How quickly can a practice apply?
You can begin with a short online form, with no documents needed to start. Typical review timelines are 24–72 hours, though timing and availability vary. Applying does not guarantee approval or funding.
Explore funding options for your practice
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.