Chello vs. Traditional Bank Lines of Credit: What Makes Chello Better for Healthcare?
Healthcare practices face unique financial challenges that traditional banks aren’t always equipped to address. From managing delayed insurance payments to handling sudden equipment failures, medical practices require flexible funding solutions tailored to their needs.
Chello offers healthcare practices a modern alternative to conventional bank lines of credit. Our medical business loans allow for quicker access to funds and features built around the financial flow of healthcare.
Faster Fund Availability
One of the primary challenges healthcare practices face with bank lines of credit is the time it takes to secure funds. Setting up a line of credit with a traditional bank can take two to three months due to the extensive underwriting, document-gathering, and approval process. During this waiting period, practices may struggle with cash flow, especially if they face delayed claims from payers or other unforeseen expenses.
Chello’s digital application simplifies the approval process, often allowing practices to secure funding in days instead of months. Chello ensures that healthcare practices can get immediate funding when needed by cutting down on paperwork and using digital data sources for underwriting.
Transparent Funding With No Hidden Fees
Traditional bank lines of credit often come with various fees—draw, annual, and non-use. These costs can erode a practice’s available funds, making it tough to budget effectively. Financial institutions usually set credit limits and durations that may not align with healthcare businesses' fluctuating cash flow needs.
Chello offers medical practice funding alongside an integrated cash flow management platform. With a fixed subscription model and no hidden fees, there are no surprises. Practices pay a set monthly fee, avoiding extra costs or penalties for using—or not using—the credit line. This transparency allows healthcare practices to focus on patient care without worrying about unexpected charges.
Healthcare-Centered Financing
Unlike standard banks, Chello focuses solely on healthcare, with a funding system connected directly to claims and payment sources. This real-time connection offers insights into revenue cycles and payment timelines that traditional lenders don’t provide. Drawing from healthcare-specific data, Chello delivers funding solutions that meet the financial needs of medical practices, such as managing cash flow gaps or planning for growth.
Chello’s insights don’t just help practices access medical business loans for doctors—they offer guidance on making the most of that funding. With a data-driven approach, healthcare providers can decide when to draw from their credit line and manage finances in a way that works best for them. Banks often fall short without this level of integration, leading to missed funding opportunities or less effective credit utilization.
Multi-Factor Underwriting for the Best Rates and Limits
Many conventional lenders use rigid underwriting methods that overlook the complex financial dynamics of healthcare practices. Funding limits are often based on standard metrics like receivables or revenue, leaving practices with rates and limits that don’t account for irregular payment cycles and reimbursement delays. High credit requirements can also make it difficult for smaller practices to secure funding for growth or essential equipment.
Chello’s underwriting model, powered by an FDIC-regulated bank under OFG Bancorp, evaluates multiple financial factors, including receivables, cash flow trends, payment histories, and claims data. This comprehensive assessment allows Chello to offer competitive rates and credit limits that match healthcare practices' operational demands and cash flow patterns, providing healthcare practice loans that support stability and growth.
Adaptable and Continuous Funding
Traditional bank lines of credit often have set durations, meaning they need to be renewed or re-applied for after a certain period. This can add administrative hassle and disrupt operations while waiting for approval.
Chello’s funding is designed to be more flexible, with a continuous line of credit that evolves with the practice’s needs. With Chello, practices can address unexpected hurdles—such as software outages, equipment failures, or cyberattacks—without worrying about reapplying for a new line of credit. Chello’s funding engine adapts to the practice’s financial goals as they change, providing peace of mind for healthcare providers.
Addressing Cash Flow Challenges in Healthcare
One of the most persistent challenges for healthcare practices is the time it takes to get paid. Even when submitted properly, claims submitted to insurance payors typically take between 12 and 120 days to process, creating a delay in cash flow. Many banks lack visibility into these claim cycles and struggle to accommodate healthcare practices' financial rhythms.
Chello’s funding engine connects to claims and payment sources, providing accurate insights into payment timing. With a line of credit and 90-day cash flow forecasts, practices can plan for payment delays and withdraw funds when needed, bridging cash flow gaps tied to insurance cycles.
Secure Accessible Funding for Your Healthcare Practice With Chello
Healthcare practices need more than what legacy banks offer. Chello’s funding model combines easy-to-access capital, healthcare-focused underwriting, and 90-day cash flow projections to help practices manage the industry’s fluid financial cycles. Chello provides data-driven support for your practice’s operations and growth, covering delayed reimbursements and handling sudden expenses.
Avoid the limitations of traditional bank financing—apply today to experience a funding solution built for your practice.
