Flychain newsletter for December 2023

Signing two new channel partners and building out our Financial OS for providers

Highlights from December 2023

Signing HealthRev and Endue

We’ve signed our fourth and fifth channel partners this month!

HealthRev Partners is a revenue cycle management company in the home healthcare space that has been in business for 15 years. This marks our first channel partner with a large existing client base. We will be fully launched with HealthRev by the end of January and are also working closely with them on a customized program to finance aged insurance claims. They’ve been a fantastic build partner to date.

Endue is an EMR/Practice Management company for infusion therapy providers. While Endue is a startup, they have validated the need for capital among their client base and we’re excited to grow alongside them given how our solution has resonated in the infusion therapy space.

Building our Financial Operating System for providers

We’re excited to update you on the the MVP of our provider-facing Financial OS, which will include the following functionality:

• Financing

  • The provider can request a draw on their line of credit at any time.

  • Reporting to reflect the latest state of the provider’s financing program.

• Revenue intelligence

  • Real-time tracking of the health of the provider’s billing process.

  • The claims data is ingested from the provider’s RCM/biller.

  • Pro-active alerts to warn the provider if the health of their billing process is trending in the wrong direction.

  • These pro-active alerts will help providers get ahead of potential cash flow issues 1-3 months before they actually occur.

• Accounting

  • Real-time reports including:

    • Cash flow

    • Income statement

    • Balance sheet

  • These reports are generated using the existing Plaid connection that we have to the provider’s bank accounts.

  • We’ve partnered with Teal to power this accounting product.

    • Teal’s co-founder is the former CEO of Bench.

  • Pro-active alerts to warn the provider if their financials are trending in the wrong direction.

• Savings

  • Given that our providers’ largest expense is almost always payroll, we’ve partnered with FundedBuy to help our providers save on their health insurance premiums.

  • We’ve partnered with Strategic Tax Planning to help our providers redeem tax credits that would otherwise be left on the table.

  • We’ve partnered with Sparx to help our providers identify savings on their Medical Malpractice insurance premiums, which is often a significant expense.

  • We’re also exploring a partnership with Innovative to enable pre-tax payroll savings for employees and employers.

• Valuations

  • The lionshare of our customers are independently owned and operated, often with a goal of selling their business in the next 3-5 years.

  • Given our access to the provider’s accounting data, we are able to calculate valuations and other KPIs that owners should track as they prepare for an acquisition.

We will be charging our providers a monthly SaaS fee to use our Financial OS. We will have a demo of our platform to show you in next month’s newsletter!

Additional credit products

As we’ve been working with customers over the last year, it’s become clear that our current credit product, which has a repayment period of 4 months or less, isn’t a good fit for providers that are looking for growth capital e.g. opening up a new location.

To address this lack of growth capital options, we’ve launched the following credit products:

• A credit product with a 6-12 month repayment period.

• An SBA product with a multi-year repayment period for providers that qualify.

Both of these credit products will enable us to better support the capital needs of providers and enable our financing product to serve as an even better wedge into our Financial OS.

New metrics coming

We have always viewed our financing solution as a way to get providers onboarded onto our broader Financial OS. To date, our metrics have exclusively been tracking the progress of our financing solution. Given that we are launching our Financial OS in February, we will re-focus our metrics in next month’s newsletter to reflect the broader vision that we are building towards. That said, here are our current metrics for December 2023:

Key metrics

Principal

The principal represents the total amount of funds that our capital partners have advanced to our providers in the given month.

Number of providers actively financed

This represents the number of unique providers that we are actively financing in the given month.

Goals

We’ve set ourselves the goal of increasing the principal and number of providers actively financed by 30% month over month between June 2023 and June 2024. You can see our monthly goals detailed here.

Goal vs Actual for December 2023

Graphs since December 2022

Financials

Monthly burn

• $50,000

Bank balance

• $2,257,698.37

Runway

• 3.7 years

Asks

We’d love to be introduced to the following types of companies, which are ideal channel partners for us:

• EMRs & Practice Management software

• Revenue Cycle Management platforms and Billing platforms.

• Other healthcare companies that are interested in offering working capital to their clients.

• Healthcare providers (any vertical).

Feel free to circulate our partner page to anyone who might be interested in chatting with us.

Till next month!