Third-Party Healthcare Factoring for Healthcare Businesses
Medical receivables factoring for healthcare providers
A Guide to medical factoring and third-party payees in healthcare from a Medical Receivables Factoring Company
Table of contents
- Medical Factoring
- Third-Party Healthcare Factoring for Healthcare Businesses
- Medical receivables factoring for healthcare providers
- Medical Accounts Receivable Financing for Healthcare Companies
- Are any of these Medical Cash Flow challenges caused by these service providers familiar to you?
- How can medical invoice factoring help you overcome these challenges?
- Here is a set of frequently asked questions about our healthcare factoring program.
- What is the cost of selling my medical receivables?
- How soon will I get the medical factoring proceeds?
- Do I have to sell all my medical invoices?
- What is batch invoice funding?
- How much is the medical factoring advance I will receive?
- What happens when customers’ payment exceeds the invoice value?
- What are medical invoice factoring benefits?
- The benefits of medical A/R factoring from a medical receivables factoring are:
- Ready to factor in your third-party medical invoices?
- Ready for the owner-employees of Bankers Factoring to fund your entrepreneurial dreams? For a free quote, call 866-598-4295 or go to Bankers-Factoring-Application.
Is Healthcare A/R Factoring right for your medical service business?
All healthcare businesses that sell on terms have cash flow problems. The healthcare industry is known for terribly slow payment terms to healthcare providers. At Bankers Factoring, we understand healthcare providers’ acute working capital problems because third-party payers extended 90-to-180-day payment terms.
What is Medical Factoring for Medical Providers?
Read more in our article What is Medical Factoring and healthcare factoring for the healthcare industry to get you that cash advance.
As a healthcare provider, you are susceptible to lacking critical working capital and enduring immense financial challenges due to outstanding account receivables from slow-to-pay customers, insurers, and government bodies. Medical invoice factoring is the key to fixing cash flow problems.
Fortunately, an external funding solution can solve these issues for you. Healthcare factoring is a financing solution that helps manage cash flow and overcome challenges in the medical industry. Receive up to 93% of the medical claims invoice’s face value with your credit line from a healthcare factoring company.
Starting a nurse staffing company? Read our article on funding nurse staffing agencies and how to choose among the medical factoring companies to turn your healthcare receivables into working capital.
What Financing challenges are faced by the Medical Industry?
The healthcare industry includes all companies and individuals offering healthcare services, equipment, or supplies. The main challenge they all face is the lack of working capital to cover daily activities and invest in growth due to their dependence on delayed payments from insurance companies and government agencies. The need for healthcare factoring companies is growing every day.
Medical Accounts Receivable Financing for Healthcare Companies
Are any of these Medical Cash Flow challenges caused by these service providers familiar to you?
- Doctors, group practices, and urgent care clinics: Are you struggling to keep up with the overheads for your office operations and healthcare facilities? Are you lacking working capital to cover salaries and pay suppliers?
- Nursing homes: Too many expenses to maintain your staffing level? Finding it hard to keep up with the continuous operating costs and cash flow problems?
- Diagnostic imaging centers: Do you have difficulties managing your overhead and operating expenses and the dramatic monthly lease cost of your diagnostic equipment, i.e., X-ray, MRI, CT scans?
- Physical therapy and rehabilitation centers: Cash flow issues due to payments for equipment, suppliers, facilities, and operating costs?
- Home healthcare agencies: Lacking a continuous source of cash to cover your weekly payroll costs for the nurses and care aids working for you?
- Companies providing home medical equipment: Missing out on equipment sale or rent because you cannot acquire new equipment because of cash shortage due to delayed payments?
As a healthcare provider, you face challenges such as operating expenses, working capital requirements, and changing technology and capital allocation’ demands, including:
Capital and Cash Flow Needs for Healthcare Professionals Include:
- Government-mandated electronic medical records
- Modernization and expansion of facilities
- Staff training
- Medical coding companies
- Medical transcription services
- Regulatory policy changes requiring capital expenditure
- Need for continuous equipment updates or replacement to meet new standards
All these challenges vary from cash shortages to a need to keep up with the new technologies, making it vital for you, as a care health provider, to have a continuous, dependable, and cost-effective source of finance. Bankers Factoring is one of the few award-winning healthcare factoring companies.
How can medical invoice factoring help you overcome these challenges?
Accounts receivable financing, also known as factoring or invoice factoring, is a branch of debtor finance that grants you funding based on your outstanding account receivables. It will offer your healthcare practice or institution a rapid cash infusion against your creditworthy invoices.
Traditional lenders will only provide you with a loan if you can provide substantial collateral; factoring companies buy your creditworthy invoices and give you an instant influx of cash without the burden of the extra monthly debt payment.
Your approval can take as little as 24 hours, and you will receive an upfront payment, up to 90%, based on the value of the invoices you have decided to factor. After 60, 90, or 120 days, your factoring company will collect the debt from your customers per the initial terms of the invoices and send you the remaining balance minus the receivables financing service fees.
Through factoring, your healthcare provider business will receive money continuously with no strings attached. You can use that money to cover your daily operations, upgrade technology, take advantage of growth and expansion opportunities, or other business purposes.
Here is a set of frequently asked questions about our healthcare factoring program.
What is the cost of selling my medical receivables?
The cost is typically based on the value of your creditworthy invoices and the time elapsed from the funding date to the invoices’ payment date. 1-3% per 30 days is the typical pricing based on volume and dilution.
You can also read our article about what invoice factoring costs for healthcare invoice factoring. Medical practices know that medical claims can take months to pay. That is why you need a healthcare factoring company to give you positive cash flow. Government insurance programs can pay even worse than private insurance carriers.
How soon will I get the medical factoring proceeds?
Establishing an account usually takes 1 to 7 days for a medical factoring transaction. Once approved, funding can take as little as 24 hours for your submitted creditworthy invoices. We understand slow paying clients in healthcare as your medical receivables factoring company.
Do I have to sell all my medical invoices?
No, you can sell as many or as few of your account receivables as you would like to a medical factoring company. A good medical factor is flexible and has a reasonable factoring fee against outstanding invoices of health care providers and their eligible receivables.
What is batch invoice funding?
Instead of submitting each invoice separately, it is better to submit the invoices you choose for factoring in a batch format. This allows for easier payment approval. Since medical staffing agencies generate multiple smaller invoices, it makes sense to batch your invoices on a weekly basis to align with your payroll for the invoice factoring company.
How much is the medical factoring advance I will receive?
An advance can be up to 90% of your approved creditworthy account receivables, even for small businesses needing a medical finance company.
What happens when customers’ payment exceeds the invoice value?
When we receive payment from your customer, any extras that exceed the amount advanced plus fees will be refunded to you. We understand small business needs.
What are medical invoice factoring benefits?
Invoice factoring/AR financing allows your healthcare provider business to face all financial challenges and cash inflow management issues. It will also allow you to take advantage of growth and expansion opportunities.
You can meet your overheads and operating expenses through invoice factoring, prevent cash shortages, and ensure your healthcare business’s survival and growth.
The benefits of medical A/R factoring from a medical receivables factoring are:
- Up to 90% upfront payment
- Special programs for Nurse Staffing Payroll Financing
- Same day funding based on your customer’s credit score, not yours.
- Leverage your accounts receivable
- Fast access to cash and continuous working capital
- Flexible, negotiable terms
- A medical finance company that understands government regulations
- Reasonable service fees from your receivable factoring company
- We understand medical provider insurance claims issues
- Professional receivable management and medical industry experience
- Based on your client’s creditworthiness
- Factoring is not a loan-less debt on your balance sheet
- Funding grows as your receivables grow with receivable factoring
- You select what medical providers invoices you want to be factored by our medical factoring company.
Ready to factor in your third-party medical invoices?
Bankers Factoring medical invoice factoring program is available to any healthcare business. Moreover, healthcare businesses with net monthly receivables from $100,000 to $10,000,000 payable in up to 120 days by any one of the following:
- Private insurance companies
- State workers’ compensation insurance companies
- Managed care agencies
- Medicare and Medicaid
- Special programs for healthcare staffing agencies and medical supply companies
- State and local government contracts
- Nursing Homes & Assisted Living Facilities
We can even help start-up small businesses with healthcare company accounts receivables. Don’t let your healthcare provider’s unpaid invoices throttle your growth. Look to Bankers for medical receivables financing as one of the few award-winning medical factoring companies.
Get Fast Working Capital through Invoice Factoring
- Business Enhancement
- Business Evaluation
- Exiting Business
- Factoring Blog
- Factoring Broker
- Frequently Asked Questions
- Government Suppliers
- Payroll & Staffing Funding
- Private Equity
- Receivable Financing
- Seminars & Events
- Start-Up & Small Business
- Supply Chain
- Tax Issues
- The Future
- Trade Financing
- Trucking Factoring