Alleon Capital Closes $2MM Medical A/R Facility
Alleon Capital Partners announces the closing of a $2 million medical accounts receivable financing facility to a radiographic and fluoroscopy services provider based in California.
The provider approached Alleon looking for financing based on its accounts receivable portfolio after experiencing rapid growth. The provider experienced a delay in payments from commercial and government insurance carriers due to an initial setup period of three months per clinic. During finalizing, the initial setup cash reserves would be depleted as equipment and staff was necessary to service the clinics. This cash crunch created a need for financing.
The transaction was structured as a credit facility with a borrowing base made up of medical accounts receivable billed to Medicare, Medicaid, Medi-Cal and major commercial insurance carriers.
The medical provider is an independent diagnostic testing facility that offers radiologic technologist services as well as fluoroscopy equipment to 50 ambulatory surgery centers and clinics throughout California, Las Vegas, Salt Lake City and Dallas.