Medical Factoring: Business Financing For Medical Professionals
Doctors and professionals that bill insurance, HMO’s or Medicare/Medicaid know how the payment cycle of the industry works. Basically, hurry up and wait, is the call of the day. It is not uncommon for a medical professional to send a claim to an insurance company and have to wait 30, 90 or even 120 days before they get paid. In the meantime, the office needs to pay employees and suppliers.
Want an instant medical factoring quote? Please click here to get an online quote now! Questions? Call (866) 730 1922
Want an instant factoring quote?. Please click here.
Affordable rates. Quick closings.
Unless the office has a large cash reserve, they are likely to run into serious problems. Sooner or later, it may run out of cash. One alternative is to go to a bank to get a business loan. That works, sometimes. However, banks can be hard to work with and seldom increase loans after giving them. What happens if your medical office keeps growing and needs more cash, as often happens with successful businesses?
Medical receivables factoring can provide a much better alternative. Medical factoring eliminates the payment delay, getting insurance claims paid in as little as 2 days. This streamlines cash, allowing the physician’s office to easily meet its obligations.
Factoring receivables is simple and works like this:
- The medical office sends claims to the insurance company
- A copy of the claims is sent to the factoring company for financing
- The factoring company advances between 60% and 85% of the claims
- Once the claims are paid, the transaction is settled
Invoice factoring is relatively easy to obtain and can be set up quickly. The most important requirement is that the medical office be well run and that it bill private insurance companies and/or Medicare/Medicaid. Factoring financing lines can be set up in as little as 10 days. The cost of factoring varies and is determined by several variables such as the types of claims you handle and the size of the claims.
Want an instant medical factoring quote? Please click here to get an online quote now! Questions? Call (866) 730 1922
Want an instant factoring quote?. Please click here.
Affordable rates. Quick closings.
Need more information? Go to the Medical Factoring Resource Center to the main medical receivables factoring page.
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