T.A.G. Business Funding · 2026 Guide
Healthcare is the fastest-growing MCA segment — and has the lowest average factor rate of any industry. A guide to all funding options for medical, dental, chiro, vet, and behavioral health practices, with data from ISO deal flow.
| Practice Type | Avg. Factor Rate | Rate Range | Approval Rate | Avg. Advance | Key Driver |
|---|---|---|---|---|---|
| Medical Practice (private) | 1.18 | 1.10–1.26 | 78% | $84,200 | Insurance reimbursements = consistent deposits |
| Dental Practice | 1.20 | 1.12–1.28 | 76% | $72,400 | High cash-pay mix + strong insurance |
| Chiropractic / Physical Therapy | 1.22 | 1.14–1.30 | 72% | $48,600 | Consistent session-based billing |
| Veterinary Clinic | 1.23 | 1.14–1.32 | 71% | $58,800 | High cash/card pay ratio, low A/R risk |
| Behavioral Health / Therapy | 1.24 | 1.15–1.33 | 68% | $36,400 | Strong but lower-volume billing |
| Urgent Care / Walk-In Clinic | 1.25 | 1.15–1.34 | 69% | $64,200 | High volume, some seasonal variation |
| Med Spa / Aesthetic Practice | 1.28 | 1.18–1.38 | 62% | $44,800 | More cash-pay volatility; trends-dependent |
| Home Health Agency | 1.29 | 1.18–1.40 | 60% | $52,400 | Medicaid/Medicare reimbursement lag |
Best for: Practice expansion, equipment, working capital with 30-90 day timeline.
Cost: 10–13% APR
Speed: 30–90 days
Requires: 2+ years, 640+ FICO, collateral
Best for: Outstanding insurance claims with 30–90 day reimbursement lag. Underwritten on payer, not practice credit.
Cost: 1–4%/month of claim value
Speed: 1–3 days
Advance rate: 60–85% of claim face value
Best for: Imaging equipment, dental chairs, laser systems, diagnostic tools. Equipment is its own collateral.
Cost: 6–18% APR
Speed: 3–10 days
Requires: 12 months, 600+ FICO
Best for: Urgent working capital, payroll, unexpected costs — when insurance reimbursement hasn't cleared.
Cost: 1.18–1.29 factor rate
Speed: 24–72 hours
Requires: 6+ months, 500+ FICO, $8K+/mo deposits
If your practice has outstanding insurance claims (30–90+ day reimbursement cycles with Medicare, Medicaid, or commercial insurers), medical A/R factoring is almost always the better option than MCA for that specific gap. Factoring advances against the actual claims — the cost is a percentage of the claim value (1–4%/month), which is typically much cheaper than MCA at 1.22 factor rate. MCA makes more sense when you need working capital beyond what outstanding A/R covers, or when you need same-day funding and factoring setup would take longer.
| Use of Proceeds | Share of Healthcare MCA | Better Alternative When Available |
|---|---|---|
| Payroll (staff, physicians) | 31% | LOC draw, if established |
| Medical / dental equipment | 28% | Medical equipment financing (6-18% APR) |
| Insurance reimbursement gap | 22% | Medical A/R factoring (often cheaper) |
| Facility renovation / expansion | 11% | SBA 7(a) if time allows |
| Supplies / inventory | 8% | Vendor terms / net-30 accounts |
T.A.G. works with medical, dental, chiro, vet, and behavioral health practices. We present multiple offers and recommend lower-cost alternatives when available.
Apply Now → 330-238-3003