A Financial Tool That Protects Your Business From Fluctuations in Revenue Cycle

Fluctuations in revenue cycle is a common dilemma for healthcare providers as they strive to maintain inventory, pay overhead, expand, and even make a profit.

To address this issue of "fluctuations in revenue cycle", you must ascertain whether the financing tools available move concurrently with your revenue stream, since cash flow is determined by your revenue cycle, not your billing cycle.

Loans, including lines of credit and asset based lines, have a common limitation to solving the dilemma. Dollar availability is fixed and cannot be reused until some portion (or all) is paid back.

Selling stock is another financing tool. However equity financing addresses long term financial questions and is not typically used as a solution for short-term cash flow problems resulting from revenue cycle fluctuations.

A financial tool that directly follows the revenue cycle is Medical Accounts Receivable (MAR) Funding. It provides a cash-flow solution to your working capital needs. Simply put, you deliver your product or service and get paid within 24-48 hours. There are virtually no limits on the amount of funding available and no requirements before you can receive additional funding.