Healthcare industry margins do not justify non-prime based capital. Total bank charges, including HLS fees, to the borrower should be over 350 basis points lower than other funding options.

Middle-market providers are already undercapitalized by some estimates of over $25 billion

Regulatory changes mandate provider investment in new clinical care and business office technology, a focus on new value based quality of care business plans, and a persistent payor litigated, denial and underpayment culture.

Post “Affordable Care Act” payor reimbursement is still overly complex calling for affordable working capital funding.

Provide the lender with collateral security sufficient to avoid the universal need of personal guarantees.