How Does Factoring Medical Receivables Work?

Medical receivables financing can help your company close the gap between providing care and getting paid.

If you do work for healthcare facilities, or provide direct patient care billed to a third-party payer, you can use accounts receivable factoring to finance your medical receivables and receive the cash you are owed in days rather than months. Medical receivables financing is simple:

First, invoice your customers for work completed and submit copies to the financing company. Then, the factor will verify that work has been completed and will advance you 70 to 90 percent of the invoice value within 24 hours. Once your customers pay, the factoring company will send you the remaining invoice value minus their fees.

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Financing Medical Receivables Keeps Your Cash Flow Healthy

While the factoring company waits to collect from your customers you can use the cash you receive to make payroll, purchase equipment and supplies, or invest in other areas of your business. Moreover, as you perform more work for your customers you can submit new invoices whenever you need to maintain a steady cash flow.

Our medical receivables financing partners work with companies providing direct patient care that is billed to private or commercial insurance; HMO/PPO plans; government assistance including Medicaid and Medicare; and managed care. They can also customize competitive financing programs for companies billing healthcare facilities such as hospitals and physicians’ offices. Self-pay accounts and no-fault accounts receivable are not eligible for medical receivables financing.

Benefits of Accounts Receivable Factoring for the Medical Industry

In addition to fast funding and worry-free collections, medical receivables financing can benefit your healthcare company in a number of ways. First, medical receivables factoring does not create debt on your balance sheet – you are simply converting your own assets into a form you can use! Second, you can qualify for funding even if you have poor or no business credit because our factoring partners evaluate your customers’ creditworthiness instead of yours.

Finally, when you begin financing medical receivables you gain access to supportive factoring staff and online reporting so you can keep track of your account up to the minute. Gain peace of mind that your account is in capable hands.

Don’t let extended payments keep your healthcare company from succeeding. Begin your medical receivables financing program now by requesting a free online quote!

Count on Medical Factoring for Fast Financing

Factoring medical receivables benefits a wide variety of providers, including but not limited to:

  • Hospitals
  • Home Healthcare Agencies
  • Temporary Nurse Staffing Companies
  • Physicians/Group Practices
  • Laboratories
  • DME Providers
  • Nursing Homes
  • Rehabilitation and Physical Therapy Offices
  • Chiropractors
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