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healthcare, small business, business loan

How to get business funding for your healthcare company

Capitalise Jun 16, 2023

For any business, working capital is essential to run effectively. Whether you’re a small clinic, a specialised practice, or a healthcare facility, having access to working capital is important for managing day-to-day expenses for any seasonal business. 

This is where a merchant cash advance loan could help, providing a flexible financial solution tailored specifically for healthcare businesses.

Merchant cash advance definition

A merchant cash advance is a type of business loan that allows businesses to access a sum of capital in exchange for a portion of their future sales. Merchant Cash Advances do not have fixed monthly payments or a set repayment term. Instead, repayment is typically made through a percentage of daily or weekly sales, making it an attractive option for healthcare businesses that experience fluctuations in revenue.

Benefits of Merchant Cash Advances for Healthcare Businesses

Quick and Easy Access to Funds

An advantage of a merchant cash advance loan is the speed at which funds can be accessed. Healthcare businesses often face urgent needs, such as purchasing new medical equipment or expanding their facilities to accommodate growing patient demand. With a Merchant Cash Advance, a business can receive funds in a matter of days.

Flexible Repayment Options

Merchant cash advances offer repayment flexibility that aligns with the revenue fluctuations common in healthcare. During periods of high revenue, larger payments are made, while slower sales periods result in smaller payments. This flexibility ensures that healthcare businesses are not burdened with fixed repayment amounts that may strain their cashflow.

No need for additional security 

Unlike secured business loans that often require a business to have assets used to secure the loan against, merchant cash advances are typically unsecured. This means that healthcare businesses do not need to put up their assets, such as property or equipment, as security. This can be beneficial for smaller healthcare businesses.

Simple Application Process

The application process for a merchant cash advance is less streamlined and requires minimal documents. Typically, a business needs to provide bank statements and card terminal data. 

What could a healthcare business use a merchant cash advance for?

Here are some common ways a healthcare business might utilise a merchant cash advance:

  • Cover unexpected expenses 

With a merchant cash advance, a healthcare business can quickly access cash to cover unforeseen expenses such as equipment repairs, ensuring the business can continue operating.

  • Purchase more stock 

A healthcare business will need to regularly purchase new stock such as gloves, disinfectants and syringes. A merchant cash advance could help to cover the costs of new stock when cashflow is tight. 

  • Plug a cashflow gap 

Healthcare businesses often face cashflow fluctuations as they tend to be seasonal businesses. A merchant cash advance can plug a cashflow gap during non busy periods. 

  • Staffing and Training

A merchant cash advance could be used to cover recruitment costs, onboarding expenses, and training programs to ensure that the business has a competent and skilled workforce.

  • Marketing and Advertising 

Effective marketing and advertising are essential to attract new patients. A merchant cash advance could be used to invest in marketing campaigns to promote services and increase patient acquisition.

Find a merchant cash advance for your healthcare business 

If you want to apply for a merchant cash advance, you’ll need to get the following documents ready: 

  • A few details about your business, including what you want to use the merchant cash advance for 
  • 3 - 6 months of card sales provider statements 
  • 3 - 6 months business bank statements. 

When you’re ready to get started, you can compare merchant cash advance lenders today. 

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