Quick Summary
Facility: $750,000 receivables-based factoring facility
Structure: 90% advance on eligible receivables, 70% advance on pre-billed invoices with extended 120-day repurchase period
Speed: Approximately one week from signed documents to first funding
Purpose: Bridge 60–90 day enterprise payment cycles during rapid growth
Impact: Enabled continued operations and supported scaling revenue with large healthcare customers

Company Overview: A Software Platform That Simplifies Prescription Approvals for Healthcare Providers

The client operates in the healthcare technology sector and provides a web-based platform that helps doctors’ offices obtain approval from insurance companies before prescribing certain medications.

In many cases, insurers require additional documentation before they will cover a prescription. This approval process often involves complex forms, manual paperwork, and phone calls between medical offices and insurance providers.

The company’s platform simplifies that process. Physician offices can complete approval requests using pre-populated fields, standardized templates, and dropdown menus rather than submitting paperwork manually.

The system supports a wide range of therapeutic areas including cardiology, neurology, endocrinology, psychiatry, and ophthalmology. By standardizing the workflow, the platform reduces administrative workload for healthcare staff and helps patients receive medications more quickly.

The Challenge: Rapid Growth Outpaced Cash Flow

As the company’s platform gained traction, more healthcare providers began relying on it to help navigate the complex process of obtaining insurance approval for certain prescriptions. The software reduced administrative work for medical staff and helped patients receive medications more quickly.

But like many companies serving large enterprise customers, the timing of payments created a challenge. The company’s largest customers operated on payment cycles of 60 to 90 days, creating a gap between when services were delivered and when cash was collected.

At the same time, the business was preparing for significant growth over the next eighteen months. Supporting that progress required continued investment in staff, infrastructure, and technology.

Without reliable access to working capital, the company risked slowing its momentum at a critical stage. Delayed payments could strain operations and limit the company’s ability to support the healthcare providers who depended on its platform.

Finding the Right Financing Partner (& Why They Chose Porter Capital)

To keep operations running smoothly while waiting on enterprise payments, the company needed a financing solution that could unlock working capital from its receivables. Traditional lending options often require stronger balance sheets or faster payment cycles, making them difficult to use for businesses working with large customers on extended terms.

The company evaluated several financing options before selecting Porter Capital. What stood out was Porter’s ability to structure a facility that aligned with how the business actually operated rather than forcing the company to change its billing processes.

Several factors influenced the decision. Porter offered a simple and transparent fee structure with no startup, management, or unused line fees. The facility could expand as receivables grew, and Porter was willing to fund certain pre-billed invoices at a lower advance rate. Just as important, Porter allowed payments on non-factored invoices to pass through directly, which preserved existing payment processes with large enterprise customers that could not easily change remittance instructions.

The Solution: Porter Capital Structures a Receivables Facility Around the Company’s Billing Cycle

Porter Capital worked with the company to design a receivables-based financing facility that aligned with its enterprise billing cycles and operating needs. By advancing funds against outstanding invoices, the company could convert receivables into working capital rather than waiting months for payments from large customers.

The facility was structured with flexibility to match the company’s invoicing patterns and customer payment timelines.

Facility Details

• Facility Size: $750,000 receivables-based factoring facility
• Initial Funding: Approximately $300,000
• Advance Rate: 90% on standard eligible receivables
• Pre-Billed Invoices: 70% advance rate
• Repurchase Period: Extended to 120 days for approved customers
• Funding Timeline: Approximately one week after signed documentation

This structure allowed the company to access cash shortly after issuing invoices while continuing to work with large enterprise customers on their existing payment terms. Instead of waiting 60 to 90 days for payments to arrive, the business could maintain steady cash flow and continue operating without disruption.

The Outcome: Stable Cash Flow During Rapid Expansion

With access to working capital tied directly to its receivables, the company was able to stabilize cash flow despite long enterprise payment cycles. Instead of waiting 60 to 90 days for invoices to be paid, the business could access funds shortly after issuing them.

This allowed the company to continue investing in staff, infrastructure, and product development while supporting a growing base of healthcare providers using its platform.

Just as important, the financing allowed the business to maintain momentum without disrupting its relationships with large enterprise customers. Existing billing and payment processes remained intact, allowing the company to continue working with major healthcare organizations on their established payment terms.

By bridging the gap between service delivery and payment timing, the Porter Capital facility provided the financial stability needed for the company to focus on what mattered most: improving prescription approval workflows for healthcare providers and helping patients receive medications without unnecessary delays.

Porter Capital’s Role: Turning Receivables Into Reliable Working Capital

By structuring a flexible receivables facility around the company’s billing cycle, Porter Capital helped transform outstanding invoices into predictable working capital. Instead of waiting months for payments from large customers, the company could access funds shortly after issuing invoices and keep operations moving forward.

Just as important, the facility was designed to fit the way the business already operated. The company was able to maintain its existing billing relationships with enterprise customers while still unlocking liquidity from its receivables.

For Porter Capital, the goal is not simply to provide funding. It is to understand how a business operates and structure financing that supports its day-to-day realities.

If your company is experiencing similar cash flow pressure tied to long customer payment cycles, Porter Capital can review your receivables and outline potential financing options. A quick review of your accounts receivable aging and customer profile can help determine whether a facility like this could support your operations. Contact Porter Capital today to see if we can support your business through custom factoring solutions!