ABL: The Healthcare Financing Trend Of 2017

February 16, 2017 by CNH Finance, LP in category “Financing”

Healthcare financing has always been a hot button topic in the United States. Now, with healthcare financing becoming front and center in almost every news report since the middle of January, private practices and large centers are trying to figure out how to maintain sources for working capital without without having to depend solely on payments from patients and insurance providers. Many practices have been turning to ABL as a viable solution.

What Is ABL?

ABL, or asset based lending, is a healthcare financing solution which provides a revolving line of credit to practices. This line of credit is structured around the value of assets, such as inventory, medical equipment, vehicles, owned property, and receivables. ABL works much like any over revolving line of credit, where medical practices can access capital as needed, rather than having to take the full amount at once. Additionally, as payments are made on the amount used, the line of credit is replenished.

ABL Is Healthcare Financing Without Debt

Unlike traditional bank loans, asset based lending provides healthcare financing without debt or compromised credit ratings. Instead, asset based lending actually gives medical practices the opportunity to increase their credit ratings. Much like any line of credit, by accessing ABL and paying off the balance in a timely manner, credit ratings for medical practices will increase quickly. This gives practices the ratings needed to access larger healthcare financing programs for plans such as expansions, acquisitions, and more.

Asset Based Lending Grows With Practices

Asset based lending is perhaps the only form of healthcare financing that grows along with practices. Traditional loans offer a finite amount of working capital, and once it is gone, the debt remains. With asset based lending, as a practice acquired new or specialized equipment, moves into larger facilities, or increases the volume of receivables, then the spending limit on the line of credit will also grow to reflect those positive changes. Asset based lending is designed to promote the success and growth of medical practices, rather than keeping them burdened with unnecessary debt.

Asset Based Lending For Medical Practices

Whether you own a private practice or you are making financial decisions for a large healthcare center, CNH Finance can help. We offer asset based lending to healthcare providers to ensure long-term success, even when the immediate outlook for the healthcare industry is uncertain. Contact our offices today to learn more about asset based lending, and how it can keep your business finances on steady ground.

Image for 'Preserve Credit Ratings and Finance Your Business'
Preserve Credit Ratings and Finance Your Business

Building and preserving business credit ratings can be a challenge, especially if you are seeking additional funding. However, there is a way to get the working capital you need without…

Image for 'Borrowing for Small Businesses: Is it Worth the Risk?'
Borrowing for Small Businesses: Is it Worth the Risk?

Small business owners are inundated with the philosophy that they cannot thrive or grow without borrowing capital from traditional lending channels. Loans, merchant cash advances, and…

Image for 'Small Business Financing: What The Banks Don’t Tell You'
Small Business Financing: What The Banks Don’t Tell You

Small business financing comes in many sizes and forms. With the number of entrepreneurs on the rise, finding affordable and flexible small business financing can be challenging. What…

Image for 'Cash Advances Are Causing Big Headaches for the Healthcare Industry'
Cash Advances Are Causing Big Headaches for the Healthcare Industry

From small practices to large healthcare centers and hospitals, finding a source of working capital can be challenging. Among the myriad options claiming to be debt-free, cash advances…

CNH Finance
24 East Ave #1285
New Canaan, CT 06840
Phone: (203) 266-3210

Business Development
Long Beach, CA 90803
Phone: (562) 833-7815

Business Development
3334 E. Coast Hwy, Suite 541
Newport Beach, CA 92625
Phone: (714) 520-1788

Melinda Ficek
mficek@cnhfinance.com

Maryland Office
3 Bethesda Metro Center, Suite 723
Bethesda, MD 20814
Phone: (301) 529-9993

Steve Silver
ssilver@cnhfinance.com

Business Development
5050 Quorum Drive, Suite 700
Dallas, TX 75254
Phone: (972) 687-9157

Rossi Felix
rfelix@cnhfinance.com