What makes PT cash flow uneven?
Prior authorizations and visit limits, plan-of-care certifications, therapy cap thresholds and payer-specific documentation all affect when claims pay. A single missed authorization can hold a whole series of visits.
Workers’ compensation and auto cases add their own timelines. A clinic with a mix of commercial, Medicare, workers’ comp and cash patients sees deposits move with each payer’s pace.
How do PT owners steady payroll?
Tighten front-desk authorization tracking, monitor visits per authorization, collect copays at each visit, and keep a reserve or funding source for payer slowdowns.
Therapists are hard to recruit, so protecting payroll protects the clinic’s capacity. A clinic that loses a therapist loses all the visits that therapist would have delivered.
How do I size funding for a therapy clinic?
Estimate payroll per period, count the periods affected by the delay, and subtract reserves. Add any costs for a new therapist starting soon, since new hires produce revenue only after credentialing and ramp-up.
Credentialing new therapists with payers can take weeks, during which their visits may not be billable to some plans. Include that in the plan when hiring during a slowdown.
| Checkpoint | Owner | Effect |
|---|---|---|
| Authorization tracking | Front desk | Fewer held visits |
| Visits remaining per auth | Therapists | Timely re-authorization |
| Copays at visit | Front desk | Steadier cash |
| Payer aging review | Billing | Early warning |
Worked example: a two-location PT practice
A two-location physical therapy practice averaging $130,000 in monthly deposits hits a stretch of delayed authorizations and a slow workers’ comp payer, putting about $30,000 of payroll at risk. Using an illustrative factor rate of 1.20, $30,000 would mean $36,000 repaid over roughly 6 months: 26 weekly payments of about $1,385.
That works out to about $6,000 a month, or 4.6% of the $130,000 this business deposits monthly, and the total cost of the money is $6,000. Once authorizations catch up, held visits bill and deposits recover; the therapists never feel the gap.
For comparison, repaying the same $36,000 over 4 months would lift the monthly outlay to about $9,000, or 6.9% of deposits, so ask for both terms in writing; the shorter one frequently prices lower even though each payment is larger.
| Average monthly deposits | $130,000 |
|---|---|
| Amount funded | $30,000 |
| Factor rate (illustrative) | 1.20 |
| Total repaid | $36,000 |
| Cost of the funding | $6,000 |
| Term | about 6 months |
| Weekly payment (26 payments) | $1,385 |
| Payments as a share of deposits | 4.6% |
Who this fits
Usually a fit
- PT clinics with steady visit volume and temporary payer delays
- Practices hiring therapists
- Owners protecting staff stability
When a practice may want to wait
- Clinics with chronic authorization problems not yet fixed
- Owners with sufficient reserves
- New clinics without deposit history
What you’ll typically need
- Recent business bank statements
- Payroll register
- AR aging by payer
- Practice details
Frequently asked questions
Can funding cover a new therapist’s ramp-up?
Yes; working capital can pay salaries during credentialing and ramp-up.
Do funders understand therapy billing?
They mainly review deposits; an aging report helps explain timing.
How quickly can money for therapist payroll arrive?
Most practice files get a same-day decision once bank statements are uploaded, and approved money for therapist payroll often lands within one or two business days.
What credit score do I need to fund therapist payroll?
For therapist payroll, 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.
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Updated October 6, 2026