NMI’s New Capital Solution Aims to Cure Healthcare’s Cash Flow Woes

SCHAUMBURG, IL – December 09, 2025 – In a move that signals a deepening convergence of finance and technology, embedded payments leader NMI has launched NMI Business Capital, a solution designed to inject much-needed liquidity into small and medium-sized businesses. While the offering targets a broad market, its implications are particularly profound for the independent healthcare sector, where private practices, clinics, and medical suppliers are perpetually squeezed by unique financial pressures. This development isn't just about a new product; it’s about a fundamental shift in how essential businesses, including those on the front lines of patient care, access the capital they need to survive and grow.

The Chronic Condition: A Cash Flow Crisis in Healthcare

For small healthcare providers, managing cash flow is a chronic battle. Unlike typical retail businesses, their revenue cycle is notoriously long and complex, dictated by insurance reimbursement schedules that can stretch for weeks or months. This inherent delay creates a persistent gap between rendering services and receiving payment, a gap that can be financially crippling.

Recent economic data paints a stark picture of the challenges. With inflation remaining a top concern for 58% of small businesses and 75% citing rising costs for goods and services, the financial cushion for many providers has worn dangerously thin. Compounding this, traditional avenues for capital are narrowing. As banks tighten lending standards, approval rates for small business loans have fallen, leaving many without recourse. More than half of small business owners report they cannot afford to take on new debt at current interest rates, creating a dangerous paradox: the need for capital is rising just as its accessibility and affordability are declining.

This environment forces healthcare entrepreneurs—from dentists needing to upgrade imaging equipment to physical therapy clinics looking to expand their facilities—into difficult choices. They may delay critical investments, struggle to make payroll, or forego their own salaries. For many, the only alternatives have been high-cost online loans or merchant cash advances (MCAs) from standalone lenders, often involving cumbersome application processes and opaque terms.

A New Prescription: Embedded Lending Integrated at the Source

NMI aims to address this pain point by embedding the financing process directly into the software platforms that healthcare providers already use daily. NMI Business Capital allows NMI’s partners—the software companies, Independent Sales Organizations (ISOs), and payment facilitators that provide merchant services—to offer fast, pre-approved financing within their existing portals.

The mechanics are designed for speed and simplicity. Merchants receive offers based on their payment processing history, eliminating the need for extensive paperwork or a lengthy underwriting process. Once an offer is accepted, funds are typically deposited within one to two business days.

“With 88% of small businesses in the U.S. reporting regular cash flow disruptions, access to funding has never been more critical,” said Peter Galvin, Chief Growth Officer at NMI, in the company's announcement. “It’s funding built right into the platforms merchants already use and trust, without the friction or red tape of traditional lending.”

Repayment is also automated and designed to be less burdensome than a fixed monthly loan payment. A set percentage of the merchant’s daily card sales is automatically deducted, meaning payments are higher during busy periods and lower during slower times. This model, common to MCAs, provides a degree of flexibility that aligns with the fluctuating revenue streams of many healthcare practices. NMI emphasizes transparency, with a single upfront fee and a promise of no compounding interest or hidden charges, a direct response to common criticisms of the alternative lending industry.

The Ecosystem Play: Empowering Health Tech Platforms

Beyond the direct benefit to merchants, NMI’s strategy is a classic ecosystem play. The company isn't lending directly; it's providing the rails for its partners to do so. By partnering with Parafin, a leader in embedded financing infrastructure, NMI is equipping its network of over 4,000 technology partners with a powerful tool to enhance their own value propositions.

This move allows vertical SaaS platforms—such as those offering practice management software for dental offices or billing systems for specialty clinics—to add a crucial financial service. It enables them to compete with larger, fully integrated platforms that have successfully leveraged embedded finance to create incredibly "sticky" ecosystems. For instance, platforms like Toast in the restaurant industry have demonstrated that combining software, payments, and capital creates immense customer loyalty and new revenue streams. NMI Business Capital empowers its partners to build a similar moat around their healthcare clients.

This strategy aligns perfectly with evolving market expectations. According to Jordan McKee, Research Director at S&P Global Market Intelligence 451 Research, “69% of SMBs say they would like their software partners to offer integrated financial products. They desire a single, unified platform that handles both operations and money movement.” By offering a white-label solution, NMI allows its partners to meet this demand, generate new revenue, and strengthen merchant relationships without shouldering the immense complexity, risk, and regulatory burden of becoming a lender.

Navigating Competitive and Regulatory Waters

NMI enters a competitive landscape where established players like Stripe, Square, and PayPal have already proven the viability of embedded lending. However, NMI’s model is distinct. While Stripe and Square primarily serve merchants on their own platforms, NMI operates as an infrastructure provider, enabling a vast, distributed network of other platforms to offer similar capabilities. This approach scales the concept of embedded finance across a much wider and more diverse segment of the market.

The solution is based on a merchant cash advance structure, a model that occupies a complex regulatory space. Unlike traditional loans, MCAs are often regulated at the state level, with a growing number of states like New York and California mandating clearer disclosures on costs and terms, including the calculation of an equivalent Annual Percentage Rate (APR). While MCAs can carry a higher effective cost than bank loans, their value lies in speed and accessibility for businesses that may not qualify for or cannot wait for traditional financing.

By partnering with Parafin and emphasizing a transparent, single-fee structure, NMI appears to be positioning its offering to align with this push for greater clarity. For a small medical practice facing an immediate need to repair a critical diagnostic machine, the ability to secure funds in 24 hours can far outweigh the higher cost, preventing lost revenue and disruptions to patient care. This trend of embedding financial tools directly into the operational heart of a business represents more than just a new product feature; it reflects a future where financial management and business operations are no longer separate functions, but a single, integrated experience.