Alleon Healthcare Capital, LLC ("Alleon"), a specialty finance company focused on providing healthcare accounts receivable financing, medical accounts receivable factoring, and cash flow solutions to medical providers across the United States, recently closed a $3,000,000 accounts receivable credit facility with a specialty diagnostics laboratory company (the "Company") operating multiple licensed labs across the Northeast. The facility was structured as a revolving line of credit to support the Company's working capital needs during an ownership transition and to fund its continued operational growth.
About the Company
The Company is a privately held specialty diagnostics and biomarker services business that has been operating for over a decade, delivering advanced clinical toxicology and molecular diagnostic testing to providers across several states. Its core service lines include clinical toxicology, with a focus on substance use and addiction treatment monitoring, and infectious disease testing covering respiratory, gastrointestinal, urinary tract, and women's health panels.
Facility Structure and Terms
The transaction was structured as a 12-month accounts receivable line of credit with a maximum facility size of $3,000,000. Advances are made against eligible billed receivables aged under 120 days, with availability calculated at up to 85 percent of the estimated collectible value on insurance receivables.
The facility is secured by a first priority, perfected security interest in all Company assets, and includes a full deposit account control agreement (DACA) structure to support cash dominion.
Why the Company Needed the Facility
The Company is in the process of being acquired by a healthcare-focused investment holding group, and the new ownership engaged Alleon to put a working capital facility in place to support operations through the transition and beyond. Diagnostics labs in particular tend to carry long reimbursement cycles, since billing runs through dozens of commercial insurance carriers plus Medicare and Medicaid programs, and collection timelines can stretch well past 90 days even when claims are ultimately paid in full. That gap between delivering test results and receiving reimbursement creates real pressure on payroll, supply purchasing, and equipment costs, and it becomes especially pronounced during a change of ownership when new leadership is also absorbing integration costs.
What This Deal Illustrates for Healthcare Providers
This transaction is a useful example of how AR financing can support businesses through an ownership change rather than only during periods of financial distress. Acquisitions in healthcare services, including diagnostics, behavioral health, and physician groups, often create temporary strain on working capital even when the underlying business is healthy and growing. A properly structured AR facility lets new ownership focus on integration and strategic priorities instead of scrambling to cover payroll or vendor obligations while receivables work through the collection cycle.
How Alleon Supports Diagnostics and Laboratory Providers
Alleon works with medical billing companies, diagnostics laboratories, behavioral health providers, home health agencies, and other healthcare entities that generate receivables from insurance and government payors. Facilities generally range from $100,000 to $10 million, with advance rates up to approximately 85 percent of the estimated collectible value of eligible receivables, and funding can typically be completed in as little as 10 business days once diligence is finished. Alleon also offers funding of up to 65 percent against letters of protection and lien-based claims for providers serving personal injury patients.
