Medical MCA
Medical MCA serves healthcare practices — physicians, dentists, veterinarians, urgent care, specialty medical — with industry-specific underwriting reflecting insurance reimbursement cycles, professional licensing, and healthcare practice economics.
Why This Matters
Medical practice MCA underwriting differences: insurance reimbursement timing (30-90 day collection cycles affect cash flow patterns), professional licensing risk (license suspension catastrophic), regulatory compliance (HIPAA, state medical board), and credit profile patterns (medical professionals often have higher credit scores than general SMB). Pricing typically favorable for medical (factor rates 1.15-1.30 vs 1.20-1.40 for general SMB) reflecting lower default rates and stronger merchant profiles. Use cases include equipment financing, practice expansion, working capital during reimbursement gaps, and partner buyouts.
Frequently Asked Questions
Frequently Asked Questions
Why do medical practices receive favorable MCA terms?
Stable revenue (insurance reimbursement provides predictable income), high credit scores (medical professionals typically excellent personal credit), professional licensing creates strong incentive against default, and longer business lifecycles than general SMB.
What's the typical medical practice MCA size?
Typically larger than general SMB — average $75K-$300K reflecting practice scale and capital needs. Larger advances ($500K+) common for multi-physician practices or specialty medical operations.