We are happy to announce that we have recently closed a $1,000,000 medical accounts receivable financing facility with a diagnostic laboratory in Texas (“Company”).
The Company was established in 2015 and is headquartered in Austin, TX. Its focus is to offer custom design panels to physicians in the management of cardiovascular disease, diabetes and inflammation. The Company approached Alleon to help with its working capital needs as strong growth was putting pressure on its cash flow. The Company’s health insurance payors paid claims between 30-90 days after submission while the Company’s outside sales force required payment within 15 days. The Company was limited in terms of how quickly it could grow organically and needed an accounts receivable financing facility to take advantage of its existing opportunities to service more patients.
When asked what the accounts receivable financing facility will provide the Company, CFO, Henry Agent, said, “The new financing will allow us to accelerate growth and stabilize our cash flow from the ups and downs of revenue collections.”
Alleon was able to structure the transaction as a financing facility made up of medical receivables that are billed to commercial insurance carriers with an advance rate of up to 75% on eligible receivables.
“The inconsistent and long payment cycle medical providers face can impact their ability to maintain and grow their companies. Alleon Healthcare is proud to assist medical providers, like this Company, stabilize its cash flow and help service a significantly larger patient base than it could on its own”, said Ben Rutkevitz, V.P. of Business Development at Alleon.
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