Alleon Healthcare Capital closed an $8 million medical accounts receivable financing facility with a retail pharmacy in Texas.

The Dallas-based company has five locations and offers various types of pharmaceutical products with a focus in topical pain and scar cream treatments. The company’s goal is to use its extensive healthcare and pharmaceutical expertise to provide the best customer care in the marketplace.

The company approached Alleon to help with its working capital needs as strong growth was putting pressure on its cash flow. With increasing sales, the company has had difficulties maintaining a growing inventory base and paying higher commissions to its distribution network. Alleon was able to structure the transaction as a financing facility made up of medical receivables that are billed to commercial insurance carriers with an advance rate of up to 85% on eligible receivables. The financing facility will also allow the company to negotiate discounts for early payments from its wholesalers thereby providing additional cash for the business.

Alleon Healthcare Capital, a division of Alleon Capital Partners, is a specialty finance company focused on providing cash flow solutions for healthcare providers in the U.S. that are unable to secure financing through conventional sources.