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.
We offer competitive rates, high advances, and quick decisions. To learn more, fill out this form or call us toll-free at (877) 300 3258.
Note: Our medical factoring lines have a $100,000 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.
To learn more, read “What is Medical Factoring?”
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. For an instant quote, fill out this form.
Note: California residents, please read this disclaimer.
Benefits
Medical factoring has several advantages over comparable solutions. Benefits include the following:
- Improves cash flow quickly
- Provides predictable revenues
- Flexible line that grows with your business
- Easy qualification requirements
- Quick setup times
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:
- Bill medical insurance providers, Medicare, or Medicaid
- Bill at least $100,000 per month
- Have six months of operating history (minimum)
- Follow good medical billing procedures
- Be free of liens
- Not have serious tax problems
Is medical factoring right for your healthcare business?
Financing your medical receivables will generally help your business if the following apply:
- You work with private insurance companies, Medicare, or Medicaid
- Your cash flow problems are due to slow-paying claims
- You need money to pay operational expenses
- You invoice at least $100,000 per month
How to evaluate medical factoring companies
Choosing the right medical factoring company is essential to the success of your healthcare business. Evaluate your prospective factoring partners carefully to ensure they are a good fit. The following questions will help you evaluate medical factoring companies:
- How long have they been in business?
- Have they worked with the insurance companies you need to finance?
- Can they finance Medicare/Medicaid claims?
- Do they require an on-site audit of your facility?
- If they require an audit, how much does it cost?
- If they have a due diligence fee, how much does it cost?
- How quickly can they set up an account?
To learn more about finding the right finance company, read “How to Choose the Best Medical Factoring Company.”
Need financing?
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.
Want to learn more?
Are you looking for a medical factoring company? We want you to make an informed decision about working with us. We have an extensive learning resource center with useful information. Popular articles include: