Loan against Insurance Receivables

In today's increasingly competitive healthcare landscape, running a healthcare facility presents unique challenges. Many healthcare providers are grappling with the growing volume of receivables due to the rise in revenue generated from government schemes such as PMJAY, Arogya Sri, and corporate entities like CGHS and ESI, as well as insurance reimbursements. This surge in accounts receivables has triggered a significant cash flow crunch and a working capital gap in hospital operations. To address these working capital issues, healthcare providers have several financial options at their disposal. Below, we explore the financial products available to fulfil their working capital needs:

Loan Against Electronic Payments (LAEP):

• LAEP, or LACR, is extended based on the monthly revenues received from electronic payment sources, such as card receivables and UPI Payments.
• Eligibility for these loans is determined by the electronic payments received in the past 12 months, often provided in multiples ranging from 2 to 3 times.
• These loans typically offer tenures of up to 36 months.

Loan against Insurance Receivables

• These loans are granted against insurance receivables and are typically provided for a period of up to 90 days.
• Healthcare providers can access up to 80% of the receivable amount, and these limits are revolving, with a credit limit of up to 80% of quarterly receivables.

Loan on Lien-Free Equipment or Top-Up on Existing Equipment Loans:

• These are term loans with a repayment period spanning from 12 to 36 months, based on Equated Monthly Instalments (EMIs).
• Eligibility is up to 90% of Fair Market Value of the equipment.

Overdraft / Cash Credit:

• Overdraft limits can be secured, amounting to up to three months of revenue, and are available against property collateral and/or current assets.
• Some lenders even offer unsecured overdraft facilities of up to 50 Lakhs.

Unsecured Loans:

• Business loans are provided by most lenders to meet working capital requirements.
• These loans are unsecured and are repayable in fixed EMIs over a tenor of up to 60 months

Finbot: Bridging the Working Capital Gap in Healthcare

Finbot, a healthcare fintech platform, specializes in assisting healthcare providers in bridging their working capital gaps. With a network of over 20 lenders on the platform, Finbot can identify the right lender and financial product to suit customer requirements, offering the best possible terms and rates. Partner with Finbot to streamline your working capital and enhance the financial health of your healthcare facility.