Medical factoring helps companies that bill private insurance companies, Medicare, or Medicaid, and have cash flow gaps due to slow-pay accounts. This type of financing is commonly used by medical professionals and healthcare providers of all specialties.
One of the larger challenges for companies in the healthcare industry is the length of time to get a claim paid. Unfortunately, few medical claims are paid quickly. Instead, most medical insurance claims take 30, 60, 90 or even 120 days to pay. This delay creates cash flow gaps and ultimately finance problems for providers because few can afford to wait so long for payment.
Slow-paying accounts can affect healthcare businesses of all sizes. However, it predominantly affects new and rapidly growing companies the most.
Medical factoring provides your business with faster payments for your medical claims. Transactions are simple. You sell and assign your claims to a medical factoring company you choose from using factor bid. The factor finance company advances funds for the claims and holds the claims until they're due. The transaction settles when the insurance carrier pays the claims in full.
Example of how transactions generally work:
The amounts advanced (in example 2 and 4) may vary based on the size of the business and the size of the claims amount.
Medicare and Medicaid Claims Specifically:
Financing Medicare and Medicaid claims requires a unique procedure since they cannot be assigned like conventional medical claims. Not all, medical factoring companies can process Medicare and Medicaid claims. Factor bid quickly matches your business with the top medical factoring companies so you're working with the best and most knowledgeable financing companies in your industry.
One of the most useful benefits of medical accounts receivable invoice factoring is that it can help fix cash flow gaps within your business caused by slow-paying insurance companies. Medical factoring is flexible, which makes it ideal to obtain and use as needed. You're line can adapt to business growth by shrinking or growing as needed. With greater control of cash flow within your organization you'll be able to run your business more efficiently as well as control financial costs.
If your business gets paid with cash and checks, you may qualify for business financing. Will more cash flow help your business today?Get Started
Are you taking Credit Card Payments at your place of business? If yes, you may qualify for a Merchant Cash Advance (MCA) loan.Get Started
Do you have a consistent history of incoming payments in your business account? See if you qualify for small business financing. Need immediate cash for an investment in your business? Get started to see how much you qualify for.Get Started