Yes — medical practices, dental offices, urgent care centers, physical therapy, chiropractic, veterinary, and other healthcare businesses qualify for merchant cash advances. T.A.G. funds $10,000–$1,000,000 in 24–72 hours, approved on demonstrated monthly bank deposits rather than outstanding insurance receivables. MCA bridges the 30–90 day insurance reimbursement gap so you can cover staff, rent, supplies, and equipment leases without waiting for your next insurance batch.
The Healthcare Cash Flow Problem — The Insurance AR Gap
Healthcare providers face a structural cash flow problem: you deliver services today but don't receive payment for 30–90 days. Insurance reimbursement cycles — including claim submission, adjudication, and payment processing — create a persistent gap between when you spend money and when it comes back. During that gap, you must still pay staff, rent, supplies, malpractice insurance, and equipment leases.
Banks treat medical practices' insurance AR as a complex asset they won't easily lend against. MCAs cut through this by approving based on your demonstrated monthly bank deposits — not your outstanding receivables. Result: capital in 24–72 hours without waiting for your next insurance batch.
Healthcare Business Types T.A.G. Funds
What Healthcare Businesses Use MCA Funding For
Healthcare MCA Qualification Requirements
How MCA Holdback Works for Healthcare Businesses
Healthcare businesses often receive revenue via large periodic deposits (insurance batch payments from Medicare, Medicaid, or commercial payers) rather than daily card batches. MCA holdback for healthcare is typically via ACH debit — a fixed daily amount withdrawn from the practice's business bank account.
This means the daily payment is fixed, not variable. Key consideration: ensure your contract includes a reconciliation clause so you can request payment adjustments during periods of low insurance reimbursements or seasonal slowdowns. A reconciliation clause gives you protection if a major payer delays batch processing or an insurance audit temporarily reduces deposit volume.
Frequently Asked Questions
- Can medical practices get merchant cash advances?
- Yes — medical practices, dental offices, urgent care centers, physical therapy, chiropractic, veterinary, and other healthcare businesses qualify for MCAs. T.A.G. funds healthcare businesses from $10,000 to $1,000,000 in 24–72 hours. Requirements: 500+ FICO, $10,000+/month in revenue, 6+ months in business, no open bankruptcy. Revenue can include insurance reimbursements, Medicare/Medicaid payments, and patient self-pay.
- What is the insurance AR gap for healthcare businesses?
- The insurance AR gap is the 30–90 day lag between service delivery and insurance reimbursement deposit. Healthcare providers must pay staff, rent, supplies, and equipment costs immediately — but insurance payment arrives weeks later. An MCA bridges this gap by advancing capital based on demonstrated monthly revenue, without waiting for claims to clear.
- What can healthcare businesses use MCA funding for?
- Top healthcare MCA uses: medical equipment purchase, insurance AR gap bridge (payroll and operations), practice expansion, EMR/EHR software, credentialing and licensing costs, and marketing and patient acquisition. Equipment and AR gap bridging are the most common use cases.
Healthcare Industry Overview — Why MCA Fits
US healthcare is a $4.5 trillion sector, but independent healthcare providers — medical practices, urgent care centers, chiropractic offices, physical therapy clinics, mental health practices, and specialty clinics — are perpetually cash-flow constrained. Insurance reimbursement lag (30–90 days), prior authorization delays, billing denials (5–10% denial rates are common), and high upfront costs for equipment, credentialing, and staffing create a structural gap between when services are rendered and when money arrives. Traditional bank lenders struggle with healthcare cash flow because they cannot easily value a medical practice's receivables. MCA underwriters look at monthly bank deposits — a metric that cleanly reflects what a practice actually collects after insurance adjustments and patient payments.
How Much Can a Healthcare Business Borrow?
A 2-physician primary care practice with $85,000/month in deposits qualifies for $63,750–$127,500. A physical therapy clinic with $65,000/month qualifies for $48,750–$97,500. A multi-specialty group with $250,000/month qualifies for $187,500–$375,000.
- Primary Care / Family Medicine
- $80K–$150K/mo → $60,000–$225,000. Staffing, EHR upgrades, patient acquisition marketing.
- Physical Therapy / Chiro / PT Clinic
- $50K–$100K/mo → $37,500–$150,000. Equipment, PRE/rehabilitation tools, additional clinician.
- Mental Health / Behavioral Health
- $60K–$120K/mo → $45,000–$180,000. Telehealth platform, additional therapist, credential fees.
- Urgent Care / Walk-In Clinic
- $120K–$300K/mo → $90,000–$450,000. Equipment, inventory, second location.
- Specialty Practice (Orthopedic, Cardiology, Dermatology)
- $150K–$400K/mo → $112,500–$600,000. Advanced equipment, specialist staff, procedure room buildout.
- Can healthcare practices qualify for MCA if they rely on insurance payments?
- Yes. Insurance reimbursements that clear as ACH or check deposits into your business bank account count toward monthly gross deposits for MCA qualification. Most medical practices receive a mix of patient card payments and insurance ACH deposits — both count. The underwriter reviews 3–6 months of bank statements to calculate average monthly gross deposits, regardless of payment source.
- Can a healthcare practice use MCA to buy medical equipment?
- Yes. While MCA is not equipment financing, it is often faster and more accessible. A practice can receive $60,000–$150,000 in 24–72 hours to purchase an ultrasound machine, upgrade an EHR system, or outfit an additional exam room — without the 3–6 week wait of medical equipment lenders or the collateral requirements of SBA financing. For urgent equipment needs, MCA is frequently the most practical option.
- Is there a minimum monthly revenue for healthcare MCA?
- The minimum monthly gross deposit requirement is $10,000. A solo practitioner in an early-stage practice or one who splits time between multiple locations may qualify at the $10,000 floor for a $7,500–$15,000 advance. Most established practices easily exceed this threshold and qualify for significantly larger amounts. There is no revenue ceiling — practices with $500,000+/month in deposits can qualify for up to $1,000,000.