Alleon Healthcare Capital closed a $500,000 medical accounts receivable financing facility with a specialty oncology clinic in California.

The company was established more than 20 years ago and specializes in the treatment of patients with multiple myeloma amyloidosis, Waldenstrom’s macroglobulinemia and metastatic bone disease, as well as conducting research related to these diseases both in the basic and clinical areas.

The company’s revenue declined in 2020 because of a drop in daily census due to COVID-19. The company approached Alleon seeking financing for its third-party health insurance accounts receivable for working capital needs and debt restructuring.

The financing facility was made up of medical receivables that are billed to commercial and government insurance carriers with an advance rate of up to 75%.

“We went through a thorough, fast and intensive, due-diligence process with Alleon, where they involved many of their team members to gain a solid understanding of the complexity and challenges facing our business,” the CEO of the company said.

“Alleon is excited to work with the company and assist it through these unprecedented times. These types of transactions are aligned with Alleon’s mission of providing cash flow needs to medical facilities that provide important services to their communities,” Ben Rutkevitz, VP of Business Development at Alleon commented.

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.