Alleon Capital provides financing for NC Provider based on its medical receivables – press release

by on 02/25/12 at 3:07 pm

Alleon Capital Partners Finances Medical Receivable transaction to a North Carolina based Chiropractic practice.

 

Englewood N.J., February 27, 2012 — Alleon Capital Partners, LLC., a medical receivable financing company, headquartered in Englewood N.J., announces the funding of a Medical Receivable loan for a North Carolina based medical provider.

The borrower, a North Carolina Chiropractic office, approached Alleon Capital Partners with the need for accounts receivable funding in order to take advantage of an opportunity to partner up with another office and initiate a new marketing campaign.

“We are seeing more and more medical providers being squeezed by insurance companies and having a difficult time obtaining traditional financing for working capital”, said managing director, Ben Rutkevitz.

After careful underwriting, Alleon Capital Partners was able to structure the transaction in a way that allowed the borrower to monetize their personal injury Accounts Receivable portfolio.

Personal Injury is an area of medicine that deals with patients who have been involved in auto accidents. The medical providers that treat personal injury patients, therefore get reimbursed from auto insurance companies as opposed to health insurances.

“Providers who treat personal injury patients tend to have a difficult time maintaining a steady cash flow because their claims get challenged and litigated more often than non auto accident cases. Most banks and private lending institutions who lend to medical practices are not willing to take personal injury claims as collateral because of the uncertainty of the cases and the length of time they take to pay (up to three years in some states)”, adds Ben Rutkevitz.

The borrower came to Alleon Capital Partners in order to take advantage of an opportunity to partner up with another chiropractic office. The funds from the proceeds of the transaction allowed the North Carolina based medical provider to increase its working capital, better serve the community and expand its operations.

“Traditional banks tend to not lend against a medical provider’s accounts receivable. They do not understand the market and the underwriting process is quite extensive. After realizing this two years ago, Alleon Capital Partners began specializing in this niche market area. What we have noticed is that medical providers who bill third party insurance carriers are all experiencing a delay in receiving payment from the date of service that can range from 30 days up to three years if litigation is involved. This greatly hampers a medical provider’s cash flow, ability to purchase new equipment and/or expand its practices.

The effect this has is detrimental on the medical provider and their patients. Instead of focusing on how to heal and treat their patients, most medical practices today focus a lot of their time and energy on how to manage their cash flow. One of the intentions of Alleon Capital Partners is to assist medical providers in establishing the systems that within six to twelve months will allow the medical practice to be cash flow stable and will no longer require financing of any kind ” added Leon Chernyavsky, Co-founder and owner.

The medical provider used their existing, outstanding accounts receivable portfolio, that they would have had to wait 2-3 years to see payment on, as collateral.

“When medical providers have immediate cash flow needs, such as in this case, expanding operations, it is financially wise to use their assets to acquire short term financing as opposed to waiting on the receivables to pay and miss an opportunity”, Ben Rutkevitz.

About the Author: Ben Rutkevitz is the Managing Director of Alleon Capital Partners (“ACP”).  ACP is a specialty finance company focusing on providing capital solutions to the medical industry.  Its target is small to mid-size medical providers that bill Medicaid/Medicare, HMOs, Commercial Medical, No-Fault, Worker’s Compensation or await payments from Personal Injury Settlements.  To contact Ben Rutkevitz, please call 201-340-6346 or email him at benr@alleoncapital.com.  You can also visit Alleon Capital Partners at www.alleoncapital.com or at their blog, http://medicalfinancingreceivables.co.

 

2 Responses to “Alleon Capital provides financing for NC Provider based on its medical receivables – press release”

  1. Martinem

    Apr 24th, 2012

    Have found your web page. My pal mentioned it to me before, yet never got around to checking it out until now. I must express, I’m floored. I really enjoyed reading through your posts and will absolutely be back to get more… CBAC Funding.

    • Alleon Capital

      Apr 24th, 2012

      Dear Martinem,

      Thank you for your comment. Please feel free to look through our posts and videos and let me know if there are any further questions you have. I can also be reached for more information on Medical Factoring and a no obligation consultation. Benr@alleoncapital.com

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