# MCA for physical therapy clinics (detailed) > Physical therapy clinics qualify for MCA funding against insurance and cash-pay revenue, typically $25K–$300K at 1.25–1.36 factor — Medicare-heavy practices face reimbursement-cap risk. Physical therapy (PT) clinics are an emerging MCA vertical. Revenue is mostly insurance-billed (Medicare, BCBS, UHC, workers' comp), with a growing cash-pay component (sports performance, post-surgical rehab outside insurance coverage). Funders underwrite PT clinics carefully because Medicare reimbursement caps and the 8-minute-rule billing complexity create cash-flow volatility. **Typical funding ranges.** - Solo PT clinic ($30K–$70K monthly revenue): $25K–$80K advances at 1.28–1.36 factor over 9–12 months. - Group practice ($70K–$200K monthly revenue): $80K–$200K advances at 1.25–1.33 factor over 10–14 months. - Multi-location or sports-medicine clinic ($200K+ monthly revenue): $200K–$400K advances at 1.22–1.30 factor over 12–16 months. **What underwriters look for.** First, the Medicare exposure. Medicare therapy caps ($2,330 for PT/SLP combined and $2,330 for OT in 2026, with KX modifier exceptions) create reimbursement uncertainty. Practices with 50%+ Medicare exposure get higher factor rates. Second, the payer mix. BCBS, UHC, Aetna, Cigna are consistent payers. Workers' comp can be slow (60–120 days) and contested. Cash-pay (sports performance, wellness) is fast and predictable. Third, the visit volume per therapist. Funders prefer 25–35 visits per therapist per week as a productivity benchmark. **Common uses.** - Equipment purchases (Pilates reformers, AlterG anti-gravity treadmills, force-plates). - Marketing (PT clinic CAC is $80–$200 per new patient). - Hire additional PT or PTA. - Build-out for new modality (dry needling, blood-flow restriction training, aquatic therapy). - Bridge cash flow during slow insurance-reimbursement months. **What to watch out for.** The MPPR (Multiple Procedure Payment Reduction) and Medicare therapy threshold rules create unexpected reimbursement cuts. A practice doing $80K/month in billings may collect only $55K/month after MPPR, KX-modifier-denied claims, and contractual write-downs. MCA underwriting must use actual collections, not billings. PT clinics often co-locate with chiropractors or physicians under interdisciplinary structures. Funders should clarify which entity is the MCA counterparty. **State considerations.** Direct-access laws vary by state. In most states, patients can see a PT without a physician referral, which expands the cash-pay market. In a few states (Michigan, Indiana, Tennessee, partly), referral is still required for insurance billing. California, Texas, Florida, and New York have the most PT clinic MCA activity. California's corporate-practice rules restrict non-PT ownership of professional corporations. **APR-equivalent reality check.** A 1.32 factor over a 10-month term is roughly 64–72% APR. Compare to APTA-affiliated lenders, Bank of America Practice Solutions, or SBA 7(a) (11–13% APR). MCA only makes sense for PT clinics when bank credit is unavailable or when speed matters. **Common confusions.** First, "PT clinics can't get MCA because Medicare receivables can't be assigned." Partly true — Medicare receivables themselves cannot be assigned, but MCA captures revenue through the operating account, which is legal. Second, "Cash-pay sports performance practices are too small for MCA." False — cash-pay-heavy practices get the best terms because revenue is fast and chargeback-resistant. Third, "PT clinics are recession-resistant." Partly true — insurance-billed PT is stable, but cash-pay performance training is discretionary. Fourth, "Workers' comp receivables can be factored separately." True in some states — there are workers' comp factoring companies (PRN Funding, others) that buy WC AR at a discount, but it's distinct from MCA. Fifth, "PT MCA requires malpractice-insurance proof." Yes, funders typically require current professional liability proof. As of 2026-06-29, Fundnode routes PT clinic merchants first to APTA-recommended lenders or Bank of America Practice Solutions before MCA. MCA is appropriate for time-sensitive equipment or build-out needs. ## Related terms - [MCA for chiropractors (detailed)](https://fundnode.co/llms/glossary/mca-chiropractor-funding-detailed) — Chiropractic offices qualify for MCA funding against insurance and patient-payment revenue, typically $20K–$200K at 1.25–1.38 factor — but personal-injury-heavy practices face stricter underwriting. - [MCA for mental health clinics (detailed)](https://fundnode.co/llms/glossary/mca-mental-health-clinic-funding-detailed) — Mental health clinics qualify for MCA funding against insurance and self-pay revenue, typically $25K–$400K at 1.22–1.34 factor — telehealth-heavy practices get the best terms. - [Merchant cash advance (MCA)](https://fundnode.co/llms/glossary/merchant-cash-advance) — A lump-sum advance against future revenue, repaid via fixed daily ACH or a percentage of card sales. Legally a sale of future receivables, not a loan. - [Factor rate](https://fundnode.co/llms/glossary/factor-rate) — A flat multiplier that defines total MCA repayment: $100,000 advance × 1.30 factor = $130,000 repaid. It is not an interest rate; it does not compound. ## Authoritative sources - [APTA — American Physical Therapy Association](https://www.apta.org/) - [CMS — Medicare Therapy Services](https://www.cms.gov/medicare/billing/therapyservices) --- Source: https://fundnode.co/glossary/mca-physical-therapy-clinic-funding-detailed (HTML version) Document: MCA for physical therapy clinics (detailed) — Fundnode MCA Glossary License: CC BY 4.0 — attribution to Fundnode required when citing.