A medical or dental practice may deliver care weeks before receiving the related insurance payment. At the same time, payroll, rent, supplies and technology continue on fixed schedules. This guide explains how practice owners can map the reimbursement cycle, calculate a specific working capital need, compare potential funding paths and protect essential operations during growth or temporary collection delays.
Map the reimbursement and collection cycle
List charges, claim submission, payer processing, requests for information, adjustments, patient responsibility, posting and final collection on one timeline. Separate insurance receivables from patient balances because timing and collectability may differ.
Review days in accounts receivable, aging by payer, denial rates, collection rates and payer concentration. A temporary delay is different from a recurring coding, authorization or billing problem that financing alone will not correct.
The CashMigo medical and dental practice funding page provides a focused starting point for working capital, staffing, equipment, renovations and expansion needs.
Calculate the specific working capital gap
Place payroll, payroll taxes, rent, insurance, supplies, laboratory costs, technology, billing, utilities and existing financing on a weekly and monthly schedule. Then compare these obligations with conservative expected collections.
Identify the cause and expected duration of the gap, such as hiring before volume grows, opening another treatment room, a payer delay, seasonal collections or a temporary credentialing transition. The requested amount should match the documented need and repayment source.
Include a reasonable reserve, but avoid treating the maximum available amount as the target. More capital can also mean a larger payment and greater pressure if collections recover more slowly than expected.
Tell CashMigo what the business needs, how much and how soon. We will review the request and help identify potential next steps.
Check My Funding Options →Separate growth investment from operating pressure
Hiring a provider, adding staff, expanding hours or opening another location may produce future revenue, but the practice must carry recruiting, payroll, credentialing, marketing and occupancy costs before the new capacity is productive.
Build a ramp schedule using realistic patient volume, payer mix, reimbursement, cancellations and provider productivity. Test a delayed credentialing date and a slower patient ramp before committing to the obligation.
If the gap comes from persistent losses, weak collections or excessive owner distributions, identify the operating correction before adding debt. Funding should support a defined plan rather than hide an unresolved deficit.
Compare potential funding paths
A business line of credit may fit repeat short term gaps when the practice qualifies and each draw has a clear repayment source. Review draw fees, payment structure, renewal conditions and how repayments restore availability.
A business term loan may fit a defined expansion or larger project with a predictable budget. Equipment financing may be more appropriate for eligible clinical assets, preserving operating cash for payroll and supplies.
Receivables based options may depend on payer type, invoice or claim status, assignment rules and the provider's requirements. Healthcare receivables can involve specialized legal, privacy and billing considerations, so confirm exactly what is eligible and how information is handled.
Prepare practice and collection records
Useful starting records may include recent business bank statements, financial statements, tax returns, current debt schedules, payer mix, production and collection reports, accounts receivable aging, payroll, provider information and a clear use of funds budget.
Reconcile collections reports, bank deposits and financial statements. Explain unusual adjustments, delayed claims, a provider departure, credentialing issues, payer changes or recent expansion honestly.
Protect patient information. Do not put medical records, protected health information, Social Security numbers, bank credentials or sensitive documents in a general website form. Use an approved secure channel if detailed records are requested.
Test the payment and protect operating reserves
Place the proposed payment into a conservative forecast that includes payroll, occupancy, malpractice and business insurance, supplies, technology, taxes, current financing and owner compensation. Delay a major payer cycle and test whether essential obligations remain covered.
Compare net proceeds, fees, payment amount and frequency, term or expected duration, total cost, collateral, liens, guarantees, reporting duties, early payoff treatment, defaults and renewal conditions.
Practice owners can share non sensitive starting information through the 60 second funding check or call 1-844-617-CASH. Approval, amount, cost and timing depend on the complete application and provider review.
Frequently asked questions
Can working capital help while insurance payments are pending?
Potentially. Providers may review the practice's recent collections, claims or receivables reports, payer mix, operating history, expenses, current obligations and expected repayment source.
Can working capital support a new provider or location?
Potentially. The practice should document recruiting, payroll, credentialing, occupancy, marketing and other costs, along with conservative volume and collection projections.
What is payer concentration?
It is the percentage of collections or receivables tied to one payer or a small group of payers. High concentration can increase risk when processing rules or payment timing change.
Should equipment be included in a working capital request?
It depends. Equipment financing may be a better match for eligible clinical assets, while working capital may address payroll, supplies and other operating needs. Compare the complete structures.
What records should a practice prepare?
Useful records may include recent bank statements, financial statements, payer and collection reports, accounts receivable aging, payroll, current obligations, ownership records and a clear use of funds plan.
