How Doctors Bridge Slow Healthcare Payments with Revolving Credit

Having trouble bridging slow healthcare payments? Revolving lines of credit may be just what the doctor ordered.

One of the biggest issues with cash flow that doctors face are slow healthcare payments. This can slow down office operations considerably, often holding medical professionals back from paying overhead costs including rent, utilities and insurance. 

Jump to Section:

A Fundamental Understanding
Of Revolving Credit Lines:

Here’s the basics of how a revolving line of credit works. First, doctors are given a credit line with a maximum anywhere from $10K to $5Mil.

You can then draw funds from this total immediately via electronic transfer, giving you 24/7 access to your credit line to use whenever, wherever, and for any medical purpose.

The funds you draw are the only funds you need to use. Doctors don’t have to use the entirety of their credit line, but instead can draw out only a portion of it at a time. This gives medical professionals the peace of mind of never over-borrowing.

You can then replace the money you withdrew back into your credit line. The amount drawn will get added back into the total, where it will become available again to withdraw.

Doctors find this “revolving” nature especially useful, as they can repeat this process as often or as infrequently as they like, preparing them for any spontaneous medical supply purchases or office expenses that require immediate attention.

How a Revolving Business LOC
Bridges Slow Healthcare Payments

The time it takes to receive healthcare payments from customers is extremely unpredictable. Doctors rarely depend on them coming in on time for expenses including bills, labor expenses or upgrading equipment.

Due to the sporadic nature of payment, medical professionals seek the most flexible types of financing options available, with terms that allow them to draw funds as needed.

Most often, our clients in the healthcare field benefit most from true revolving business lines of credit.

How Revolving Business Lines of Credit for Doctors Help

Revolving lines of credit allow doctors to take out the exact amounts of capital they need at a time, which they can use on their own terms.

When working capital is tight, take out the amount of capital you need to smooth over any expenses without worry. And when you aren’t in need of funds, you don’t have to use them.

Different than small business loans for doctors and dentists, revolving credit lines give medical professionals the freedom to borrow only the amount that they need to withdraw at a time, instead of having to use the total amount borrowed at once.

While waiting for healthcare payments to process, the doctors we help use revolving credit lines to cover expenses that their limited working capital isn’t able to.

Purchase medical supplies in bulk,  cover utilities, pay insurance bills, and anything else you would otherwise have to wait for healthcare payments to process in order to cover.

Should they choose not to use funds from their credit line, the total amount they borrowed will remain available for them to use when they’re ready with no penalties or consequence of any kind.

Benefits of Revolving Lines of Credit for Doctors

  • 90% of All Medical Professionals Approved: We believe in giving back to those who give so much to the community. That’s why over 90% of all doctors, dentists, and medical professionals of all kinds receive approval for a revolving credit line.
  • True APR Interest Rates: While most financing options follow higher factor rates, our revolving business lines of credit for doctors follow lower, more desirable APR rates.
  • Lower Cost of Capital: By only paying for what you use, you can be sure that you never over-borrow, therefore utilizing the lowest-cost capital funding option for your practice.
  • No Real Estate Collateral Requirements: You don’t have to put your medical practice at risk when you get a revolving credit line. No more leveraging your assets in return for the working capital you need.
  • No Prepayment Penalties: Pay off your credit line as much or as little as you like without worrying about any fees or penalties.
  • Only $10K/Monthly in Gross Sales Needed: If your medical practice does at least $10K a month in gross sales then you may very well qualify for revolving credit.
  • Build Your Business Credit:  Every time you draw from and replace capital from your credit line, you effectively build your FICO, and put your practice in a desirable financial position for further growth opportunities.
  • Expand Your Credit Line: If doctors find their medical practice in a period of growth and are seeking additional funds, NBC can expand revolving credit lines faster than any bank or traditional lender.

How to Apply for Revolving Credit Lines for Doctors & Dentists

Through our expedited and simplified process, the majority of doctors and medical professionals who apply for revolving credit receive access to funds within 24 hours after applying.

Give us a call to see if revolving credit lines are the best funding option to bridge your slow healthcare payments at (877) 482-3008 or apply online today to fill out our 1-minute online application, and get the funds you need to cover costs, take on more patients, and provide a higher quality of care!

About the Author, Megan Capobianco
Megan Capobianco is the Marketing Manager at National Business Capital & Services. Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.