Company

Flychain is the Financial Operating System for small to medium-sized healthcare providers. Its suite of financial tools includes working capital, full-service accounting and bookkeeping, valuation services, spend management solutions, and revenue cycle intelligence.

Opportunity

Healthcare providers often face significant cash flow challenges, which are further complicated by the unique nature of insurance-based revenue.

Healthcare businesses often sacrifice growth–or worse, risk missing payroll–when the reimbursement cycle is too long. In addition to the long standard 45-60 day reimbursement terms, issues frequently arise which further delay expected payments. 

Instead of enduring the lengthy reimbursement cycle for claims to be paid out by payers, Flychain enables providers to secure cash as soon as claims are submitted.

Why OatFi?

Flychain needed a capital partner that understood the unique nature of the healthcare industry, and could work with new, real-time data streams (insurance billing and collections data) to better underwrite and finance healthcare businesses.

That said, building the financial infrastructure necessary to provide upfront payments for insurance claims is a resource-intensive task. Given the rolling cycle of insurance claims payouts, Flychain required an infrastructure capable of periodically settling loan balances within a batch of receivables.

Furthermore, the uncertainty surrounding claim payout dates required a credit solution that could accommodate daily interest fee accruals on outstanding loan balances. Flychain opted to partner with OatFi to access an end-to-end credit solution via user-friendly APIs capable of supporting this complex financing structure.

Solution

OatFi and Flychain developed a unique credit product by leveraging insurance claim billing data rails in concert with traditional SME underwriting which enables the accurate pricing of risk, while creating a frictionless customer experience.

The combination of Flychain’s healthcare data and infrastructure and OatFi’s credit infrastructure is a perfect marriage of traditional credit concepts and new technology + data which has enabled Flychain customers to access fairly priced working capital for the first time.

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Results

By integrating OatFi's credit infrastructure, Flychain was able to launch with a robust working capital solution. This strategic move empowered Flychain to grow its provider base and increase revenue, while simultaneously gaining customer trust.