Alleon Capital Partners Finances Medical Receivable Transaction to a Georgia Medical Provider

Englewood, NJ (PressExposure) June 20, 2011 -- The borrower approached Alleon Capital Partners with the need for accounts receivable funding in the form of an asset based line of credit, in order to increase their working capital.

The borrower provides orthopedic medical equipment to qualified patients in their community and bills the corresponding insurance carriers. As many medical providers (MPs) are finding out today, insurance carriers are delaying payments and cutting down the amount they are providing medical practices.

The medical provider was having cash flow problems due to these delays in payments and was having to turn down new patients. The demand in the MPs community was outgrowing the practice's ability to provide equipment. Since the medical practice has to outlay the initial costs in purchasing the equipment, they needed an asset based line of credit they can draw on to cover these initial costs plus cover overhead.

Alleon Capital Partner's $75,000 line of credit provided the medical practice the necessary liquidity to grow their business and fulfill their vision of providing medical equipment to their entire community.

"It's always great when you can structure a win/win transaction with a medical provider like we did in this case. We got to lend our capital according to our collateral requirements, the borrower received a line of credit that will allow them to grow their business and the patients in the community received quality medical equipment," 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 Accounts Receivable portfolio.

"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 MPs who bill third party insurance carriers are all experiencing a delay in receiving payment from date of service that can range from 30 days up to three years if litigation is involved. This greatly hampers a MP's cash flow, ability to purchase new equipment and/or expand their 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 MPs 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.

About Alleon Capital

Alleon Capital Partners, LLC is an originator, servicer, and advisor of asset-based loan and/or purchase transactions. Its main focus is on providing capital to healthcare providers secured by medical accounts receivable. Typical transactions are either direct purchases of medical accounts receivable or loans secured by senior liens against the underlying medical accounts receivable. In most instances, collections are from cash payments received from third party insurance carriers.

Alleon excels at identifying Portfolios to buy, structuring low-risk deals with Medical Providers, and collecting payments for the underlying medical claims.

Alleon Capital Partners, LLC., headquartered in Englewood, NJ, is a financial services company, specializing in Healthcare financing. Alleon Capital Partners provides loans and purchases accounts receivable portfolios of medical providers nationwide. Alleon Capital Partners recently moved its headquarters from White Plains N.Y. to Englewood N.J. to better serve its clientele.

To Submit a Medical Accounts Financing Receivables Click Here []

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Press Release Submitted On: June 20, 2011 at 9:56 am
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