CAPITAL · WORKING CAPITAL
MCA & Working Capital
Medical practice working capital through merchant cash advance (MCA) is a short-duration, revenue-based financing product for operators whose deposit history is stronger than their tax returns. It is faster and more accessible than a bank line, and meaningfully more expensive. We refer MCA as a working capital option when the timing and math work, and we say so plainly when waiting for an LOC is the better path.
Healthcare working capital in plain terms
Healthcare working capital is money a practice uses to cover day-to-day operating costs such as payroll, supplies and rent while payer reimbursements catch up. A merchant cash advance for a medical practice is one way to get it: the practice takes a lump sum now and repays it as a share of its daily deposits. PMC is not a lender. We refer practices to third-party funding sources and manage the application.
How We Source Medical Practice Working Capital
Factor rate, holdback percentage, and total cost of capital are disclosed in writing before the client signs any offer. We will not process a deal until the operator has confirmed they understand the effective annualized cost and the repayment mechanics. This is both our policy and, in a growing number of states including Georgia, a legal requirement we comply with uniformly across all jurisdictions.
Typical terms
| Parameter | Typical range |
|---|---|
| Advance size | $25K – $1M |
| Term | 4–18 months (revenue-adjusted) |
| Factor rate | 1.15 – 1.45 |
| Holdback | 7% – 20% of daily deposits |
| Minimum monthly revenue | $20,000 |
| Minimum time in business | 6+ months |
Preparing to apply? See the practice capital readiness checklist.
When MCA is the right tool
- Bridging a documented revenue event (new contract, seasonal ramp, payer reimbursement delay).
- Funding in days, not weeks, when the opportunity cost of waiting exceeds the cost of capital.
- Operators with strong deposit history but tax returns that don’t reflect the current run-rate.
When it isn’t
- Covering structural losses. MCA accelerates the failure; it doesn’t fix the business.
- Equipment purchases: lease the equipment instead and match the term to the asset life.
- Any situation where an LOC is available within 10 business days.
State availability
We do not currently place merchant cash advance or line-of-credit products in California, Utah, Virginia, or Connecticut due to state-specific commercial financing regulation, and we do not broker commercial loans or lines of credit in Missouri. If your business is located in one of these states, our Equipment Leasing and Practice Consulting services remain available to you.
When Medical Practice Working Capital Makes Sense
Medical practice working capital through MCA makes sense in a narrow set of circumstances: you have a time-sensitive opportunity, strong daily deposits, and a clear path to repaying the advance from increased revenue. Common scenarios include bridge funding while a payer contract renegotiation closes, equipment deposits that lock in a promotional rate, or payroll coverage during a seasonal volume dip. PMC will not place a deal when the math does not work. If a line of credit is achievable in your timeline, we will tell you to wait.
Frequently Asked Questions
What is a merchant cash advance (MCA)?
A merchant cash advance provides a lump sum of capital in exchange for a percentage of future revenue. Unlike a traditional loan, repayment adjusts based on your practice’s incoming payments, making it more flexible during slower periods. MCAs are commonly used for short-term funding needs like equipment purchases, office renovations, or bridging cash flow gaps.
How is working capital different from a business loan?
Working capital funding is designed to cover day-to-day operational expenses rather than specific asset purchases. It provides liquidity to manage payroll, supplies, rent, and other recurring costs. Business loans typically fund specific purposes with fixed repayment schedules, while working capital solutions offer more flexibility in how the funds are used.
Can medical practices qualify for working capital financing?
Yes. Medical practices often qualify for favorable working capital terms because they have predictable revenue streams from insurance reimbursements. Lenders view healthcare practices as relatively low-risk borrowers. Practice Management Consultancy refers practices to third-party funding sources and manages the application so capital can move quickly.
How quickly can I receive working capital funding?
Many working capital products can be funded within 24 to 72 hours of approval, making them ideal for urgent needs. The application process is typically straightforward, requiring basic financial documentation and several months of bank statements. Practice Management Consultancy streamlines this process by pre-qualifying practices and matching them with the right funding source.
Is a merchant cash advance the same as healthcare working capital?
Working capital is the goal and a merchant cash advance is one way to reach it. Healthcare working capital covers everyday operating costs, while a merchant cash advance is a specific product that provides a lump sum repaid as a share of future revenue. A line of credit is another route, and it is usually the cheaper one when the timing allows.
Who is medical practice working capital a good fit for?
Practices with strong daily deposits and a clear, near-term revenue event. Typical uses are bridging a payer reimbursement delay, funding an equipment deposit, or covering payroll through a seasonal volume dip. If your tax returns understate your current run-rate but your bank statements show the revenue, that is the situation this product was built for.