Resources
The confusions that cost practice owners money
Direct answer
Practition Finance publishes 6 explainers. Each one starts from a specific confusion that costs healthcare practices money, states what is actually true, and shows the mechanics behind it with dated published figures. They are written for owners and buyers comparing structures, not for people already holding a signed term sheet.
As of October 2026
Most expensive financing mistakes are vocabulary mistakes. Two products share a word, and the difference surfaces at closing.
These pages take one confusion at a time, set the two things side by side, and name the document or the line item where the difference actually shows up.
The six explainers
A patient payment plan is not practice financing
CareCredit, Cherry, and Sunbit pay a practice for a discount fee at checkout. None of them fund payroll, equipment, an acquisition, or a build-out.
Medicare and Medicaid receivables and the double lockbox
Government payers will not accept an assignment of benefits to a factor. A double lockbox structure is how a Medicare or Medicaid receivable is financed anyway.
Factoring is not a loan
Factoring sells an existing receivable for cash today. A loan borrows against future repayment plus interest. The difference changes the balance sheet.
SBA versus conventional for a practice acquisition
SBA 7(a) reaches further on goodwill and equity but adds fees and weeks. Conventional practice lending moves faster with less paperwork and often more equity.
The 60/40 rule and why the seller's collections decide the deal
Practice transition lenders lean roughly 60% on the seller's collections and 40% on the buyer's file. That weighting decides which deals clear.
Lease versus loan for Section 179
Section 179 and bonus depreciation apply differently across lease and loan structures. The lease type chosen decides whether the deduction is even available.
Reference figures behind these pages
| Figure | Current | Confidence | Source |
|---|---|---|---|
| Factoring advance rate | 70% to 95% of net collectible value1 | VerifiedAugust 2026 | Clarify Capital, Crestmont, Factor Finders |
| Factoring discount fee | 1% to 5% per invoice2 | VerifiedAugust 2026 | MonitorDaily, Crestmont, FactoringExpress |
| SBA 7(a) FY2026 fees | At statutory maximums (Notice 5000-872051)3 | VerifiedAugust 2026 | NAGGL |
| Section 179 limit, 2026 | $2,560,000, phase-out from $4,090,0004 | VerifiedAugust 2026 | Section179.org, Ameris Bank, Rev. Proc. 2025-32 |
Questions people ask
01Who are these explainers written for?
Owners, buyers, and administrators comparing structures before anything is signed. They assume you can read a profit and loss statement and do not assume you have financed a practice before. Where a decision belongs with an accountant or counsel, the page says so rather than substituting for either.
02Are the figures in these pages current?
Each figure carries its publisher and the date it was current, and the refresh cadence is tracked so a stale figure is replaced rather than left standing. Rates and program limits move, so the as-of date on the page matters as much as the number itself.
03Do these pages recommend a specific funder?
No. They explain categories and mechanics. Practition Finance is an independent business financing referral service, and any referral to a funding partner happens through a separate request that asks for your state and your consent first.
04Why do so many of these compare two products?
Because comparison is where the money is. A single product described alone sounds reasonable; set against the alternative on the same amount and the same term, the cost difference and the balance sheet difference become visible, and that is usually the whole decision.
05Can I use one of these to challenge a quote I already have?
You can use it to ask better questions. The pages show what the market publishes and what a funder reads, which is enough to test whether a quote is inside the usual range. They cannot tell you whether a specific offer is right for your file.
06How often is this material reviewed?
Figures are rechecked on the cadence published beside them, and the pages are revised when a program limit, a fee schedule, or a published benchmark changes. Every page shows the date its figures were current so a reader can judge the age of the material.
Other places to start
Sources
- 1Clarify Capital, Crestmont, Factor Finders
- 2MonitorDaily, Crestmont, FactoringExpress
- 3NAGGL
- 4Section179.org, Ameris Bank, Rev. Proc. 2025-32
Send the team the purchase details for review. If a funding partner thinks it can help, its specialist contacts you to discuss next steps.