How To Finance Your Medical Supply Company
Medical supply companies (also known as DME’s) can be very profitable enterprises. However, most medical supply companies operate on a very tight cash flow. The complicated billing procedures and slow payments of insurance companies, HMOs and Medicare/Medicaid often create a situation where companies have to wait 30 to 60 days before getting their claims paid.
Cash flow can get even tighter if the company’s sales grow, or if the owners decide to open new locations. When this happens, most business owners try to get bank financing through a business loan or line of credit. However, obtaining bank financing is incredibly challenging as banks will only lend money to a company that shows profits for three straight years and can provide audited financial statements.
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.
There is a alternative financing strategy in the healthcare industry that works well with medical supply companies. This solution provides you with quick financing based exclusively on your sales. Furthermore, since funding is tied to sales, the line of financing grows as your sales grow. The solution is to factor your medical insurance claims using medical receivables factoring.
Medical factoring provides you with immediate funding based on your slow paying claims. Rather than waiting 30 to 90 days to get paid, with medical factoring you can get paid in a just a couple of days. This frees up significant cash, allowing you to finance operations, meet payroll and more importantly, to buy supplies and fuel new sales.
As opposed to a conventional business loan, where the bank lends you money, the factoring company buys your insurance claims and pays you immediately for them. The process is fairly simple and sets you free from the traditional bank lending requirements. Medical receivables factoring is easier to qualify for, and often, the owners’ personal credit is not an important consideration.
Factoring your medical receivables can be an ideal solution for your medical supply company/DME if your main challenge is that you cannot wait up to 90 days to get paid by insurance companies. If that is the case, factoring receivables should provide you with the working capital you need to operate and grow your business successfully.
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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