You already earned it. You shouldn't wait ninety days to spend it.
LightStar Financial Services advances working capital against claims you have already billed to Medicare, Medicaid, government programs and commercial insurance — so payroll never waits on a payer.
Programs are built for providers billing roughly $25,000 to $750,000 a month.
Accounts receivable aging
Illustrative- 0–30 days$186,400
- 31–60 days$142,900
- 61–90 days$88,250
- Over 90 days$34,100
Every one of those claims is revenue you have already earned. Factoring turns the aged columns into cash you can use this week.
Three ways to put your receivables to work.
Healthcare revenue is slow, uneven and heavily regulated. Conventional lenders price that as risk. We treat it as the thing we underwrite.
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Factoring
Receivables factoring
You bill the claim, we advance against it, and the balance settles when the payer remits. Availability moves with what you billed this week, so a new contract or a rising census means more funding rather than a new application. It fits providers whose problem is timing, not profitability.
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Revolving
Asset-based lines of credit
A revolving line secured by a borrowing base of eligible receivables. Draw what you need, pay down as collections arrive, and the line resizes as the base moves. Lower cost than factoring, in exchange for tighter reporting and clean billing operations.
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Support
Financial operations support
Some providers do not have a cash problem so much as a back-office problem. We can take on billing follow-up, collections, reporting and day-to-day financial management — alongside a funding program or on its own.
How these differ from a bank loan.
| Factoring | Asset-based line | Conventional bank loan | |
|---|---|---|---|
| Secured by | Specific receivables you sell | A pool of eligible receivables | Business and often personal collateral |
| How the limit moves | Rises and falls with what you bill | Follows the borrowing base | Fixed at closing |
| Underwriting looks at | Payer quality and claim aging | Collateral performance and reporting | Multi-year financials and covenants |
| Usually suits | Newer or fast-growing providers | Established providers with clean billing | Profitable borrowers with long history |
| Relative cost | Highest of the three | Between the two | Lowest, when you qualify |
We will tell you when a bank is the better answer for you. Part of the job is knowing which of these you actually need.
If you bill a third party and wait to be paid, start here.
Our portfolio runs across the care continuum. What these providers share is a payer sitting between the service and the payment.
- Medicare and Medicare Advantage
- Medicaid and Medicaid managed care
- State, county and waiver programs
- Commercial insurance and managed care organizations
- Home health agencies
- Home care and personal care agencies
- Hospice providers
- Behavioral and mental health
- Durable medical equipment suppliers
- Non-emergency medical transportation
- Physical, occupational and speech therapy
- Diagnostic labs and imaging
- Healthcare staffing agencies
- Community-based and waiver providers
Four steps, and a person on the phone for all of them.
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01Tell us the basics
Send your payer mix, monthly billings and current aging
No tax returns on day one. We need to understand who owes you money and how long it has been outstanding.
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02We review the receivables
We look at the quality of your claims
Payer mix, aging, denial patterns, concentration and any existing liens. For most providers this is a very different conversation than a bank credit committee.
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03Terms are set
Your program is written for your situation
Advance rate, pricing, reporting and the mechanics of each draw. Every program is flexible and customized — we do not have one product to sell you.
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04You draw as you bill
Submit claims, draw against them, repeat
Funding becomes part of the billing routine instead of an event. As billings grow, so does what is available to you.
A small firm that knows one industry well.
LightStar Financial Services provides factoring and asset-based financing to small and mid-sized healthcare companies nationwide. Healthcare receivables are the whole business, not a vertical we added.
Healthcare receivables do not behave like commercial invoices. Payment depends on eligibility, authorization, documentation and a payer's own cycle. A claim can be valid, clean and still unpaid for ninety days, and a paid claim can be recouped a year later.
A generalist funder prices all of that as risk. Knowing how a payer actually behaves is what lets us advance against those claims at terms that make sense, and what lets us tell you early when something in your billing is going to cause a problem.
- We underwrite the receivable. Providers declined elsewhere on time in business or profit history often have a program here.
- Every program is built once. Advance rates, pricing and draw mechanics are written for the business in front of us.
- You talk to someone who decides. Small firm, short chain, real answers when you call.
Send us the healthcare deal nobody else wants to underwrite.
Healthcare receivables are their own discipline. If a provider deal is sitting on your desk because the usual funders do not understand the payers, send it here.
- A provider billing roughly $25,000 to $750,000 a month
- Receivables due from Medicare, Medicaid, a government program or commercial insurance
- A client declined on time in business rather than on the quality of the receivable
- An existing facility that has stopped keeping up with the client's billings
- Referral terms agreed in writing before we engage your client
Tell us what you bill.
A few minutes here is enough for us to say whether there is a program for you and what we would need next. This is not a credit application and it does not touch your credit.
Prefer to talk?
- Phone
- 816.265.2555