Physical Therapy Merchant Cash Advance & Business Funding
Merchant cash advance for physical therapy clinics.
Physical therapy clinics can get a merchant cash advance based on deposits from insurers, Medicare and patients. The risk funders watch is payer timing, especially for a new location that's still getting credentialed with insurers. Staffing in this field climbs steadily through the year. Size a payment on the months when claims are slowest to pay.
How do funders read physical therapy clinics?
Funders look at payer mix, claim timing and visit volume. They'll ask whether each location is fully credentialed.
How does money come in for physical therapy clinics?
Revenue comes as insurance and Medicare payments by EFT, often weeks after the visit, plus copays and cash-pay sessions by card. A new clinic can see visits for months before some insurers pay, because credentialing takes time.
Which months are slowest for physical therapy clinics?
This table shows how many people private offices of physical, occupational and speech therapists and audiologists (NAICS 621340) businesses employed each month, as an index where the year's average is 100. It comes from the Bureau of Labor Statistics Quarterly Census of Employment and Wages, the most recent full year available. Staffing is a stand-in for how busy a business is. Deposits can move more or less than headcount, so read it as the shape of the year, not your numbers.
| Month | Staffing index (average = 100) | |
|---|---|---|
| January | 98 | lowest |
| February | 99 | |
| March | 99 | |
| April | 99 | |
| May | 100 | |
| June | 100 | |
| July | 100 | |
| August | 100 | |
| September | 100 | |
| October | 101 | |
| November | 102 | |
| December | 102 | highest |
The low point is January at 98.1 and the high point is December at 101.9, a swing of 3.8 points. Staffing climbs gently from winter into the last months of the year.
| Quarter | Total payroll index (average = 100) |
|---|---|
| Quarter 1 | 97 |
| Quarter 2 | 99 |
| Quarter 3 | 99 |
| Quarter 4 | 106 |
Payroll by quarter can rise at year end for reasons like bonuses and overtime, not only more work.
What do physical therapy clinics use merchant cash advances for?
- Treatment tables, exercise equipment and modalities.
- A new clinic's first months before insurers pay.
- Therapist hiring.
- Scheduling and billing software.
- Build-out of a leased space.
What does an advance payment look like in a slow month?
Staffing barely moves through the year here, so the slow month to plan for isn't seasonal. Say one insurer's payments are held up during credentialing and deposits come in 20% under average. Say a business like yours deposits $90,000 in an average month and carries a fixed payment of $9,000 a month, 10% of that average:
| Deposits | Fixed payment | Share of deposits | |
|---|---|---|---|
| Average month | $90,000 | $9,000 | 10.0% |
| A month 20% below average | $72,000 | $9,000 | 12.5% |
A fifth less in deposits turns a 10% payment into 12.5%. Keep a cushion for it, or ask how reconciliation works before you need it.
Which funding options fit physical therapy clinics?
Each page runs one option against this industry's slow months.
Same-day merchant cash advance for physical therapy clinics
Money the same business day for an urgent cost, with the fixed daily debit measured against a slow month.
Business line of credit for physical therapy clinics
A draw sized for a slow month, repaid in thirds, with the interest on the balance worked out.
Revenue-based financing for physical therapy clinics
A remittance that moves with revenue, so a slow month sends less, and the months to reach the repayment cap.
Second position MCA for physical therapy clinics
What a second advance adds on top of the first, and what both payments take from deposits in a slow month.
MCA consolidation for physical therapy clinics
One payment in place of two, with the share of deposits before and after in a slow month.
Run a business like this?
Tell us your slow months up front and we'll look for funders that size for them. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.