Why are these receivables so slow?
PI payments usually depend on case settlement, which can take many months or longer. Workers’ comp requires authorizations, specific forms and adjuster review, and disputes add time.
These receivables are real but uncertain in timing. Settlements can be reduced, and comp claims can be denied or contested. Practices with a high share of these cases need more working capital than those paid mainly by commercial insurers.
How do practices manage the mix?
Limit PI and comp to a set share of the schedule, track case status, follow up with attorneys and adjusters regularly, and keep documentation complete.
A dedicated staff member for PI and comp case follow-up often pays for itself. Clear lien agreements and timely records requests also reduce delays.
Does funding count my PI receivables?
Revenue-based funders generally look at actual deposits, not open liens. Funding is sized to what the practice deposits from all sources.
That means a practice with steady deposits from other payers can bridge PI timing, but a practice relying mostly on unsettled cases may find options limited until settlements arrive.
| Practice | Effect | Owner |
|---|---|---|
| Cap share of schedule | Limits cash risk | Practice owner |
| Case status tracking | Timely follow-up | Billing |
| Complete documentation | Fewer disputes | Clinical staff |
| Regular attorney contact | Settlement awareness | PI coordinator |
Worked example: a chiropractic and rehab clinic
A chiropractic and rehab clinic averaging $110,000 in monthly deposits has a growing PI caseload awaiting settlement and needs $25,000 for payroll and rent during a slower settlement stretch. Using an illustrative factor rate of 1.23, $25,000 would mean $30,750 repaid over roughly 5 months: 22 weekly payments of about $1,398.
That works out to about $6,150 a month, or 5.6% of the $110,000 this business deposits monthly, and the total cost of the money is $5,750. Settlements arriving later can strengthen cash flow, but the funding is sized to current deposits, not future settlements.
For comparison, repaying the same $30,750 over 3 months would lift the monthly outlay to about $10,250, or 9.3% of deposits, and a shorter term can come with a lower factor rate, so comparing both versions side by side is worthwhile.
| Average monthly deposits | $110,000 |
|---|---|
| Amount funded | $25,000 |
| Factor rate (illustrative) | 1.23 |
| Total repaid | $30,750 |
| Cost of the funding | $5,750 |
| Term | about 5 months |
| Weekly payment (22 payments) | $1,398 |
| Payments as a share of deposits | 5.6% |
Who this fits
Usually a fit
- Practices with balanced payer mixes including PI and comp
- Clinics with steady deposits from other payers
- Owners improving case follow-up
When a practice may want to wait
- Practices relying mostly on unsettled PI cases
- Clinics without documentation processes
- Practices without deposit history
What you’ll typically need
- Recent business bank statements
- AR aging by payer type
- Practice details
Frequently asked questions
Are PI liens counted as revenue by funders?
Typically not until paid; deposits drive the decision.
Can funding cover a PI coordinator?
Yes; working capital can pay for staff.
How quickly can money for a PI settlement gap arrive?
Most practice files get a same-day decision once bank statements are uploaded, and approved money for a PI settlement gap often lands within one or two business days.
What credit score do I need to fund a PI settlement gap?
For a PI settlement gap, owners with scores from 500 can be considered because recent deposits carry the most weight, and stronger credit usually earns a lower cost and a larger offer.
Waiting on settlements?
Apply and keep operating.
Updated October 6, 2026