What will a funder look at?
The current payment amount and schedule, how much of the balance remains, whether the account shows strain such as negative days, and whether deposits have grown since the first advance.
Practices often take a first advance for one purpose, such as a staffing gap, and later need funds for another, such as equipment repair. If deposits have grown, there may be room for both. If not, a combined renewal is usually cleaner.
Which path is most common for practices?
Renewals are common once a meaningful share is repaid, because they replace the current balance with a new agreement and one payment. Second positions are possible but must fit alongside the first payment.
Payment relief, sometimes called reverse consolidation, can lower total daily or weekly payments when they have become too heavy. It is a different tool, used when the main problem is the size of current payments.
How do I know if I can afford another payment?
Use your lowest recent month of deposits, subtract fixed costs including payroll and rent, then compare what remains with the combined payments. If the margin is thin, focus on restructuring first.
Medical revenue can swing with payer timing, so a cushion is wise. A payment that fits in an average month should still fit in a slow one.
| Option | Result | Fits when |
|---|---|---|
| Renewal | One payment, new funds | Significant share repaid |
| Second position | Two payments | Deposits comfortably cover both |
| Payment relief | Lower combined payments | Payments are too heavy |
Worked example: a dermatology practice renewing
A dermatology practice averaging $220,000 in monthly deposits has repaid most of an earlier advance and wants $55,000 for a new provider’s first months and a laser repair. Using an illustrative factor rate of 1.24, $55,000 would mean $68,200 repaid over roughly 7 months: 30 weekly payments of about $2,273.
That works out to about $9,743 a month, or 4.4% of the $220,000 this business deposits monthly, and the total cost of the money is $13,200. Comparing the single renewed payment with a slow month’s deposits confirms whether the practice keeps a healthy cushion.
For comparison, repaying the same $68,200 over 5 months would lift the monthly outlay to about $13,640, or 6.2% of deposits, and because shorter terms often carry a lower factor rate in practice, it is worth asking to see both before choosing.
| Average monthly deposits | $220,000 |
|---|---|
| Amount funded | $55,000 |
| Factor rate (illustrative) | 1.24 |
| Total repaid | $68,200 |
| Cost of the funding | $13,200 |
| Term | about 7 months |
| Weekly payment (30 payments) | $2,273 |
| Payments as a share of deposits | 4.4% |
Who this fits
Usually a fit
- Practices well into an existing advance
- Groups whose deposits grew since the first funding
- Owners seeking one consolidated payment
When a practice may want to wait
- Practices with frequent negative balance days
- Agreements that restrict additional funding
- Very recent advances
What you’ll typically need
- Recent business bank statements
- Current advance agreement and payoff
- Practice details
Frequently asked questions
Must I disclose my existing advance?
Yes; it appears on statements and disclosure speeds review.
Is a renewal cheaper?
Not always; compare total cost and payments for each option.
What is payment relief?
A restructure that lowers combined payments over a longer term when current payments are too heavy.
Does a 500 credit score rule me out for a practice renewal?
No. Applicants from 500 can be reviewed for a practice renewal; the deposit history does most of the work, and better credit typically improves the terms you are offered.
Advance open, new need?
Apply and compare paths.
Updated October 6, 2026