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Cash Flow for the Healthcare Industry

Medical Factoring

Through Medical Receivables Factoring, we acquire and manage healthcare receivables. Our services include the purchase of accounts receivable, collection, and the appraisal of healthcare receivables paid by third-party insurers such as Medicare, Medicaid, commercial insurers, and managed care plans to healthcare providers.

We Pay Cash up-front for medical accounts receivable out to 120 days.

Our Medical Accounts Receivable Purchase Plan Includes:

  • Ideal for hard to collect LOP receivables
  • DIP Funding & A/R Liquidations
  • Cash for Both performing and distressed portfolios
  • Bridge Financing & Interim Financing
  • Alternative to Collection Agencies: Why wait for your money?
  • Medical Staffing

Get funding using medical receivables factoring today! Call (888) 400-5930 or use the fast, safe & secure online funding application.

HealthCare AR Factoring

All businesses who sell on terms have cash flow issues. At, we understand the acute working capital problems healthcare providers face. We also understand that the majority of these predicaments spring because of the extended 90 to 180-day payment terms. As a healthcare provider, you are susceptible to not being able to secure the needed working capital and endure critical financial challenges due to outstanding account receivables from slow- to-pay customers as well as insurers and government bodies.

Fortunately, there is an external funding solution that can solve these issues for you. Healthcare factoring is a modern financing solution that you can take advantage of to manage your cash flow optimally and get rid of these severe financial shortages that limit both your growth and success. So let’s get through the different challenges faced by the industry and how invoice factoring can help you overcome them.

What challenges are faced by the Medical Industry?

When talking about the healthcare industry, it includes all companies and individuals providing
health care services, equipment, or supplies. The main and common challenge they all faced is the lack of enough working capital for them to not only cover their daily activities but also to invest in their growth; due to their typical dependence on insurance companies’ and government agencies’ delayed payments.

Are any of these challenges familiar to you?

  • Doctors, group practices, and urgent care clinics: Struggling to keep up with the overheads for your office operations? Do you lack the 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?
  • Diagnostic and imaging centers: Having difficulties managing both your overhead and operating expenses as well as the dramatic monthly lease cost of your diagnostic equipment, i.e., X-ray, MRI, CT scan?
  • Physical therapy and rehabilitation centers: Cash flow issues due to payments for equipment, suppliers, facilities, and operating costs?
  • Home healthcare agencies: Lacking an endless 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 are unable to acquire new equipment and therefore sale or rent it because of cash shortage due to delayed healthcare

As a healthcare provider, not only you are challenged by the various operating expenses and working capital requirements, but also constant changes in technology and different capital allocations’ demands, including:

  • Government mandated electronic medical records;
  • Modernization and expansion of facilities;
  • Staff training;
  • Regulatory policies changes requiring capital expenditures;
  • Need for continuous equipment updates or replacement to meet new standards.

All these challenges that vary from cash shortages to a need to keep up with the new technologies make it vital for you, as a care health provider, to have a continuous, reliable and cost-effective source of finance.

How can 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 provide your healthcare practice or institution a fast cash infusion against your creditworthy invoices. This is on contrary to the traditional lenders that will only provide you a loan if you can provide substantial collateral.

Factoring companies purchase your creditworthy invoices. Next, they’ll 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 92%, based on the value of the invoices you have decided to factor. You will receive the remaining balance once your customer has paid minus low-cost fees.

Through factoring, your health care provider business will receive money continuously with no string attached; meaning that you are free to use that money to cover your daily operations and upgrade your technology. You can also use this to take advantage of growth and expansion opportunities or any other business purposes. To simplify the process for you, following a set of frequently asked question about our health care factoring program

What is the cost of selling my medical receivables?

The cost is typically based on the value of your creditworthy invoices as well as the time elapsed from the funding date to the invoices’ payment date.

How soon will I get the funds?

Establishing an account usually takes 1 to 7 days for a factoring transaction. Once approved, funding can take as little as 24 hours for your submitted creditworthy invoices.

Do I have to sell all of my medical invoices?

No, you can sell as many or as few account receivables as you would like.

What is batch funding?

Instead of submitting each invoice separately, it is preferred to submit the invoices you chose to factor in a batch format for payment approval.

How much is the advance I will receive?

An advance can be up to 92% of your approved creditworthy account receivables.

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.

What are invoice factoring benefits?

Invoice factoring/AR financing allows your health care provider business to face all kinds of financial challenges and cash inflow management issues along with providing you with the ability to take advantage of growth and expansion opportunities.

Through invoice factoring, you can meet your overheads and operating expenses, prevent cash shortages, and ensure your healthcare business’ survival and growth.

To sum up, the benefits of invoice factoring are:

  • Up to 92% upfront payment;
  • Same day funding;
  • Leverage your accounts receivables;
  • Fast access to cash and continuous working capital;
  • Flexible, negotiable terms;
  • Reasonable service fees;
  • Professional receivable management and industry experience;
  • Based on your clients’ creditworthiness;
  • Factoring is not a loan. Less debt on your balance sheet;
  • Funding grows as your receivables grow;
  • You pick and choose what invoices you want to be factored.

If you are ready to factor your medical invoices, then health care financing program is available. Any healthcare business with net monthly receivables from $100,000 to $10,000,000 payable in up to 120 days by any one of the following:

  • Insurance companies;
  • State workers’ compensation insurance companies;
  • Managed care agencies;
  • Medicare or Medicaid;
  • State and local government contracts;
  • Hospitals;
  • Nursing Homes & Assisted Living Facilities

Get funded using medical receivables factoring today! Call (888) 400-5930 or use the fast, safe & secure online funding application.

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