Alleon Healthcare Capital closed a $1 million medical accounts receivable financing facility with a diagnostic laboratory in Austin, TX.
The company offers custom design panels to physicians in the management of cardiovascular disease, diabetes and inflammation. It approached Alleon to help with its working capital needs as strong growth was putting pressure on its cash flow.
The company’s health insurance payers paid claims between 30-90 days after submission while the company’s outside sales force required payment within 15 days. The company was limited in terms of how quickly it could grow organically and needed an A/R financing facility to take advantage of its existing opportunities to service more patients.
Alleon structured the transaction as a financing facility made up of medical receivables billed to commercial insurance carriers with an advance rate of up to 75% on eligible receivables.
“The inconsistent and long payment cycle medical providers face can impact their ability to maintain and grow their companies. Alleon Healthcare is proud to assist medical providers, like this company, stabilize its cash flow and help service a significantly larger patient base than it could on its own,” said Ben Rutkevitz, vice president of Business Development at Alleon.
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.
