[Sab@MFP]

Long term home health care company, in business 16 years. Roughly $60 million in annual revenue, 35% gross profit margin, no debt and clean financials. Recent changes to Medicare billing have increased invoice payments by 30 days. Client is looking for a $4 million dollar short term (30-60 days) revolving line of credit. Not interested in an advance or factoring. Line of Credit only. PM me if you can assist.

[omegafund]

Revolving LOC for 30-60 days? You or your client don't know what you are asking for.
LOC that high dollar amount would be tied directly to AR. LOC term would be for longer than 30 or 60 days. These larger LOC can sometimes take up to 30 days to set up.

If he really only wants the money for 30 days which is odd best to get a cash advance.
If collecting on AR bumped up another 30 days he would be best to look at factoring as most ABL guys dont even consider medical AR>

We have funded these before. GOod luck

[Funder Mark]

The problem is they want up to $4,000,000, which puts them outside of the cash advance space, unless there are companies that go really big.

[Triton]

The problem is they want up to $4,000,000, which puts them outside of the cash advance space, unless there are companies that go really big.

There are very few but they are out there. Either way, I could place this with a Hedge Fund for that amount but it won't be a LOC and it will take around 2 weeks to fund.

[RichardGerard]

While there are several possibilities, we do have 3 or 4 partners that would do this (as omegafund said) that would tie this into the AR. The players we work with that specialize in this, are familiar with HIPAA restrictions, and could structure this as a 60 day LOC- as long as the clients [ay within 60 days. If the client already has Senior Debt it becomes more challenging- as we then would have to shift focus..

Richard 516 510 3855

www.businesscapitalconsultants

[bdshaw]

I don't want to seem simplistic and acknowledge there are very good responses from my peers, but, the picture you draw tells me they are perfect for their own bank. The big question is where do the funds come from to pay the loan back since in 60 days Medicare will likely still be out the 30 days.
Why not charge them a fee for packaging the loan request and take them to their bank?
You would probably earn more than anyone could pay you for a 60 days loan.
I would also talk to them about their future financing needs since any lender will want to know their plans.
Good answers above guys.
Bob

[bdshaw]

Perhaps you could expand a bit. Does the company have any debt from lenders who would have filed an all asset lien. As I asked before how will they pay the loan,back?
Bob

[CO1]

There's cash advance companies that do $2mm plus!!

[RichardGerard]

While Bob states the obvious solution is to stay with their existing bank (and he might be spot on), the truth is that many banks do not have ABL divisions, and those that do may not work with EOB/Medicare/Medicaid receivables..

If as you say the client has no senior debt, I would suggest that a third party BUYS $4M of the existing receivables. This firm could pick and choose the paper they want and get a favorable term sheet out swiftly. With a few calls I could several partners agreeing to such a situation.

This solution would ensure the client not have any debt service, and the time frame would be addressed organically...

Richard 516 510 3855

www.businesscapitalconsultants.com

775 Park Avenue Suite 255
Huntington, NY 11743

[bdshaw]

As usual Richar D is correct.
I don't,understand why a company like this does not a line of credit with their or any national bank.
Why not show your client you are a forwArd thinker by finding out what their cash needs will be over the next 12 months. If they tell you they don't need one just point to their current situation.
Either Richard or myself can help you with this.
You can get two sharks if we work together.
Bob

[Alleon Healthcare]

We are direct medical accounts receivable lenders and provide LOC's. As the other comments state a 30-60 day term would not make sense for us or the client. The line of credit will use the AR as collateral and a lockbox will need to be set up. To set up the line only to dismantle it within 30-60 days would be too onerous. We typically have a 12 month contract on our lines of credit but would consider a six month term for this client.