FundKite CTO Alex Shvarts recently wrote an Op Ed piece for financial publication MoneyInc on “Why Are Medical Offices Seeking Alternative Funding?” The article details the reasons that doctors and other healthcare professions seek additional cash flow, why they have a hard time getting funded by banks, and what the most common uses for extra working capital are.
“Cash flow is a wonderful thing, that is, when it’s flowing. A smooth cash flow can give business owners a secure financial status and stable growth projections, but very few industries are afforded that luxury. Managing accounts payable and receivable can be tricky, as orchestrating a balance of cash flow can be unpredictable and out of the owner’s control.
“This is especially true for the medical industry, where cash flow issues commonly occur from delayed insurance processing, putting an even bigger strain on the massive costs of purchasing medical equipment. While medical offices see high numbers come in, they frequently experience the inverse, and the balance of cash can often switch on short notice…
Why Medical Operations Need Funding
“Medical office is a broad term encompassing private specialty practices like dentists, physicians and optometrists, as well as entire hospitals or even a large network of hospitals. The healthcare industry has generally stable income flow and a need for large purchases, making it an ideal candidate for funding companies to work with. But do medical offices want funding as much as funders want them? Absolutely. Medical offices are among FundKite’s top funded industries and have a wide range of uses that always vary…”
Shvarts continues to explain why health and pharmaceutical offices are excellent candidates for funding despite the accompanying debt of the expensive occupation. Read the rest of the article in more detail on MoneyInc clicking this link. To find out more about what healthcare businesses use funding for and how FundKite can help, or to apply for funding, click here to read up on the industry.