Medical factoring enables healthcare providers to finance their invoices for claims to medical insurance companies, Medicare, and Medicaid. It provides your company with working capital which you can use to pay employees, suppliers, and other company expenses.
More importantly, factoring your medical receivables provides your healthcare company with predictable cash flow. This financing solution lets you focus on running and growing your company instead of pursuing insurance companies for quick payment.
Note: Our medical factoring lines have a $500,000 monthly usage minimum.
How does medical factoring work?
Our medical receivables factoring plans finance your insurance claims in two installments. The first installment is called the advance. It covers about 75% to 85% of the claim and is deposited into your account once the finance company processes your claim.
The remaining 15% to 25% (less the fee) is deposited into your account once the insurer pays the medical claim. This second installment settles the transaction.
Costs
The cost of factoring your medical receivables is determined by the financing facility’s size and the transaction’s credit quality. Generally, factoring costs range from 2% to 3.5% per 30 days.
Benefits
Medical factoring has several advantages over comparable solutions. Benefits include the following:
Who can benefit from our services?
Our solution can help healthcare providers that bill private insurance or Medicare/Medicaid for medical services and need to get paid quickly. Some examples of healthcare providers we work with include the following:
Easy qualification
Qualifying for medical factoring is comparatively easy. Your company must:
Is medical factoring right for your healthcare business?
Financing your medical receivables will generally help your business if the following apply:
Need medical factoring?
We are a leading provider and offer competitive medical factoring plans. For immediate information, fill out this form or call us toll-free at (877) 300 3258.
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