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Arranged through a specialist partner under a BAA
Factoring against billed claims, not against your credit.
Advance 80% to 90% of billed receivables against commercial, government, and insurance payers. Facilities of $25,000 to $5,000,000, for practices billing $50,000 a month or more. Arranged through a specialist partner that operates under a Business Associate Agreement signed directly with your practice.
Soft pull·No impact on personal credit·4-minute application·No patient data requested
Medical-claims factoring is arranged through a specialist partner, not underwritten by MedStream Capital — and there is a specific reason.
Advancing against billed insurance claims requires claim-level detail that can constitute protected health information. MedStream Capital does not request, receive, or store protected health information, so we do not underwrite claims factoring in-house. We place those files with a specialist partner that operates under a Business Associate Agreement signed directly with your practice.
If what you actually need is cash against a slow receivable cycle and you would rather not involve anyone in your claims at all, MedStream Capital working capital does the same job off your bank statements alone — $25,000 to $2,000,000, funded in 24 hours, no claim data, no BAA required. Most practices that call us about factoring end up here.
When it is the right answer
Three cases where factoring beats everything else.
A home-health agency with 40+ caregivers
Labor runs 60% to 70% of revenue and payroll runs weekly, while Medicaid and managed-care clean claims pay in 30 to 45 days and a denial restarts the clock. Payroll coverage — available cash plus confirmed collections divided by the next two payroll runs — below 1.5 is the week to finance.
DSO above 75 days, a third of A/R past 90
Benchmarks are 50 days DSO or better, with no more than 15% to 20% of receivables over 90 days. A book that far out is a collections problem, and a factor's collections desk is often worth more than the advance.
A practice growing faster than its cash cycle
Adding a provider adds payroll in week one and receivables in month three. Factoring scales with the billed book instead of being re-underwritten every time you grow.
Side by side
Factoring or MedStream Capital working capital.
| Claims factoring | MedStream working capital | |
|---|---|---|
| What you get | 80% – 90% of invoice face | A fixed amount, $25,000 to $2,000,000 |
| Priced as | A fee per invoice, by days outstanding | A total cost of capital in dollars, known on day one |
| Who talks to your payer | The factor, under a BAA | Nobody |
| Data required | AR aging, payer contracts, claim detail | 4 months of business bank statements |
| Setup time | 7 – 14 days | 24 hours |
| Minimum | $50,000/month in billed receivables | $15,000/month in deposits |
| Underwritten by | Specialist partner | MedStream Capital, in-house |
The HIPAA statement, in full
MedStream Capital is not a covered entity and not a business associate. We underwrite on business financial records — bank statements, deposits, and the practice's own stated revenue. We do not request, receive, access, or store protected health information. We do not connect to your EHR, your practice management system, or your clearinghouse. Section 1179 of the Social Security Act provides that HIPAA does not apply to an entity engaged in financial-institution activities, and reviewing a business's own bank statements for a credit decision is such an activity. A lender becomes a HIPAA business associate only by performing functions beyond payment processing — accounts-receivable servicing or lockbox work on a covered entity's behalf, for example — using protected health information. MedStream Capital's in-house products do none of that.
The one exception is medical-claims factoring. Advancing against billed insurance claims requires claim-level detail that can constitute protected health information. For that reason MedStream Capital does not underwrite claims factoring in-house. We route those files to a specialist partner that operates under a Business Associate Agreement with your practice. You will sign that BAA directly with the partner, not with us.
Published in full
MedStream Capital eligibility criteria
These are our actual requirements for working capital and line of credit. There is no additional hidden screen.
| Minimum time in business | 6 months |
|---|---|
| Minimum monthly revenue | $15,000 in deposits across all business accounts |
| Minimum credit score | None. There is no FICO minimum on working capital or line of credit. |
| Funding range | $25,000 to $2,000,000 |
| Documents required | 4 months of business bank statements |
| Documents never required | Tax returns, P&L, patient records |
| Time to decision | Same business day on complete files received before 2:00 p.m. ET |
| Time to funding | 24 hours after a signed contract |
| Application time | 4 minutes |
| Contract length | 2 pages |
| Prepayment | Discount of up to 30% of the remaining balance. No prepayment penalty, ever. |
| Business location | United States — all 50 states and the District of Columbia |
| Bank account | A U.S. business checking account in the practice's legal name |
| Entity types accepted | PC, PA, PLLC, LLC, S-corp, C-corp, and sole proprietors with an EIN |
| Licensure | Active state professional or facility license for the practice or its supervising provider |
| Credit pull | Soft pull at application. No impact on personal credit score. |
Claims factoring — the specialist partner's criteria, not ours
| Minimum billed receivables | $50,000 per month |
|---|---|
| Advance rate | 80% to 90% of face |
| Payers accepted | Commercial, government, or insurance |
| Facility size | $25,000 to $5,000,000 |
| Agreement | Business Associate Agreement signed directly with the specialist partner |
| Underwritten and funded by | A specialist partner, not MedStream Capital |
Who actually gets funded. Practices with at least 6 months of operating history and $15,000 a month in deposits. In-house advances run $25,000 to $2,000,000. Practices under 24 months old are funded, but typically at $25,000 to $75,000.
Different criteria apply to SBA loans, term loans, and medical-claims factoring. Those are arranged through our bank and specialist partners and carry their own underwriting. SBA 7(a) through our partners generally requires a 680+ personal FICO, a 1.25× debt-service coverage ratio, three years of tax returns, and a 10% equity injection. Those thresholds are the partner bank's, not ours.
MedStream Capital is not a HIPAA covered entity and not a business associate. We underwrite on business financial records — bank statements, deposits, and the practice's own stated revenue. We do not request, receive, access, or store protected health information, and we do not connect to your EHR, practice management system, or clearinghouse.
FAQ
Claims factoring, answered.
Does MedStream Capital see my patients' information?
No. MedStream Capital is not a covered entity and not a business associate. We underwrite on business financial records — bank statements, deposits, and the practice's own stated revenue. We do not request, receive, access, or store protected health information, and we do not connect to your EHR, practice management system, or clearinghouse.
The one exception is medical-claims factoring. Advancing against billed insurance claims requires claim-level detail that can constitute protected health information, which is exactly why MedStream Capital does not underwrite claims factoring in-house. Those files go to a specialist partner operating under a Business Associate Agreement that you sign directly with the partner, not with us.
Can I factor Medicare and Medicaid claims?
Yes. The specialist partner accepts commercial, government, and insurance payers, including Medicare and Medicaid. Government-payer files carry extra structure around where the payment lands, because federal payers remit to the provider, and the partner handles that at setup.
Will the factor contact my payers?
In notification factoring, yes — that is how the product works. If payer contact matters to you, ask for non-notification at setup, and expect a lower advance rate in exchange. If you would rather nobody touched your claims at all, MedStream Capital working capital does the same job off your bank statements alone.
Is factoring cheaper than an advance?
It depends on how long the receivable sits. Factoring is priced per invoice against an 80% to 90% advance of face, so a book that collects in 35 days is cheap and a book that collects in 95 days is not. A MedStream Capital advance is priced once as a total cost of capital in dollars, known on day one. Setup is the other difference: 7 to 14 days for a factoring facility against 24 hours for an advance.
Related: MedStream Capital working capital, home health and home care funding, or our full compliance and data-handling page.
Most practices that call about factoring end up on working capital.
No claim data, no BAA, no payer contact. Four bank statements and 24 hours.