Merchant cash advances used to be geared mostly for businesses that sold goods that were paid for by credit or debit cards.  However, now, health care advances have been developed that work the same way as merchant cash advances except that the repayments are done from future payments made by any means, not just credit or debit cards.

How Merchant Cash Advances Work

Merchant cash advances are loans that are repaid out of future revenues of the business. These payments can be structured as a percentage of your credit card sales. You pay the lender the agreed-upon percentage of your credit card sales until the loan is repaid. Another way that the payments can be structured is by fixed withdrawals from your business checking account. These withdrawals can be agreed to be monthly, weekly or even daily. As payments come in to your business account, the money is available for the withdrawals to repay the loan. This type of payment structure works for businesses that don’t do all their business by credit card, such as health care businesses. 

How Health Care Advances Can Help

A merchant cash advance can help a medical professional who wants to establish his or her own practice. There are a lot of startup costs for such a venture, and the person may not have the cash available. The merchant cash advance will allow the professional to set up his or her office and repay the loan through future payments.

A medical clinic or hospital could also use a health care advance to finance the expansion of their business while paying back the loan out of future revenue. Merchant cash advances are often easier to qualify for than a conventional business loan. The funding is usually available more quickly than with a regular loan, too.

Another situation where the merchant cash advance would come in handy is when a medical practice wants to add more team members. There are upfront costs to expanding the staff, and these can be paid for by the merchant cash advance while the repayments can be taken out of the future revenue generated by the new staff members.

Health care businesses are no longer at a disadvantage when applying for merchant cash advances. Just because much of their revenue is in forms other than credit or debit card receipts does not mean that they have to miss out on this source of funding. They can now repay the cash advance out of their business bank account rather than out of their merchant accounts.