A new practice's cruelest math: credentialing takes 90–120 days, payers remit 30–60 days after that, and payroll runs every two weeks regardless. A revenue purchase fills the gap between care delivered and cash collected. This is boutique funding: a person reads your file, not a scoreboard.
You can see patients before payer enrollment completes, but you cannot bill at in-network rates. Three to four months of near-full payroll against partial collections is standard for a new practice.
Clean claims remit in 30–45 days; a 5–10% denial rate pushes real collections past 60. Every denial is rework your biller does for free while rent stays right on time.
EHR and practice-management licenses, clearinghouse fees, malpractice tail, a buildout that passes ADA and OSHA — six figures of infrastructure before the first claim goes out.
Physicians make bank underwriting departments short-circuit: high personal student debt, a business with no two-year history, and receivables the bank will not collateralize. The waiting room can be visibly full and the decline letter still arrives the same week.
SBA is the honest alternative — if you can wait three to four months and survive the paperwork. Most new practices need the gap bridged this quarter, which is precisely what a revenue purchase is for.
Collections in a practice follow a monthly rhythm once the panel fills: claims go out weekly, remits land in waves. We size the advance to your average monthly collections and remit weekly, so the purchase settles from the same cash the payers keep sending.
If you want to accelerate receivables already billed, read our healthcare factoring guide — that tool advances on specific claims. A revenue purchase is for everything else: payroll through credentialing, the second exam room, the biller hire that pays for itself in denial recovery. Sharp terms, straight answers — that is the whole Cutting Cap model.
EHR optimization, a clearinghouse upgrade, and a real denial-management process — the boring spend that lifts collections 5–10% permanently.
Cover two to three payroll cycles while payer enrollments complete, so you stop choosing between staff and survival.
Build out and equip the room that lets you add a PA or extend hours — capacity that pays back monthly once the panel supports it.
Yes, once there is revenue on the statements. Three months of deposits — even partial, out-of-network, or self-pay heavy — is enough to underwrite. Purely pre-revenue is too early.
Different tool. Factoring buys claims you have already billed. A revenue purchase advances against future collections as a lump sum — no claim-level paperwork, no per-payer notices. Our healthcare factoring guide goes deeper on the difference.
A revenue purchase is a sale of future revenue, not a loan, so it is structured differently than bank debt. Talk to your accountant about presentation — most practices treat the remittance as an operating cost.
A $15,000, $25,000, or $50,000 revenue purchase — and those are floors, not ceilings. We fund more when the financials support it. Apply in four minutes; decision in 24–72 hours.
