Alleon Healthcare Capital closed a $1 million medical accounts receivable factoring facility with a durable medical equipment company in Pennsylvania.
The company has been around since 2019 and specializes in diabetes care, which includes constant glucose monitoring (CGM) devices and wound care. The company currently supplies more than 3,000 patients with CGM supplies monthly. With uncontrolled diabetes, a patient can potentially develop diabetic foot ulcers, which requires special wound care.
The company approached Alleon with a request to leverage its medical accounts receivable to accommodate its growth and make timely payments to vendors in order to fulfill orders. Alleon structured the transaction as a factoring facility made up of medical receivables that are billed to commercial and government insurance carriers with an advance rate of 80% on eligible receivables.
“We are very excited to be partnering up with a company that provides such high-quality and personalized products to the diabetes community. A factoring product for this sector of the healthcare industry provides much needed relief and support to the healthcare provider,” Ben Malyar, vice president of business development at Alleon, said.
