| There are few bigger pains for healthcare industry | | | | be able to grow with your business. So, if your |
| professionals than having to wait 30, 60 or even 120 | | | | business grows its billings, the solution should be able to |
| days to collect payments from insurance companies, | | | | adapt the financing it delivers, seamlessly. Third, the |
| HMOs and Medicare/Medicaid. The healthcare industry | | | | solution should allow you to finance significant growth. |
| is riddled with complex billing, coding and processing | | | | Maybe three to five times your current revenues - or |
| rules that create very long payment cycles. This can | | | | more.There is a solution that meets these criteria and |
| be very difficult for medical offices, testing and | | | | is available to the healthcare industry. The solution is to |
| diagnostic centers, medical supply companies, or any | | | | factor your medical receivables using a financing tool |
| healthcare related business, for that matter. There are | | | | called medical factoring. Medical factoring allows you to |
| always many ongoing expenses that can't wait. There | | | | accelerate your payments from insurance companies, |
| is rent that needs to be paid, offices expenses that | | | | HMO's or Medicare/Medicaid. It enables you to receive |
| need to be covered, and payroll that must be met.This | | | | a substantial amount of your net collectables within |
| situation creates a problem for most healthcare | | | | days of billing, streamlining your cash flow |
| businesses. On paper, the business may look very | | | | dramatically.Medical factoring, a specialty form of |
| profitable and seem to be doing well. But in reality, | | | | general factoring, allows you to sell your claims and |
| most of the money is tied up in slow paying invoices | | | | receivables to a factoring financing company. The |
| (also known as accounts receivable) with little cash to | | | | factoring company buys them - at a small discount - |
| show for it in the bank.When faced with tight cash | | | | and pays you with immediate funds. The factoring |
| flow, most healthcare professionals turn to their | | | | company waits to be paid while you get to use the |
| bankers. Medical doctors can usually qualify for | | | | funds to meet business expenses. As opposed to |
| signature loans or lines of credit. Other business | | | | traditional banking financial products, medical factoring |
| professionals are not so lucky. In reality, a loan or line | | | | has no arbitrary limits. You can factor or sell as much |
| of credit may help you in the short term, but will not | | | | revenue as you can generate, making it the ideal |
| solve the main problem. Why? Well, loans are good for | | | | financing tool for growth.However, factoring is not the |
| buying equipment or large capital expenditures, but not | | | | best solution for every situation. It works best in |
| for covering recurring and ongoing expenses. A line of | | | | instances where your main challenge is that you |
| credit is a better solution, but they usually have fixed | | | | cannot afford to wait to get paid in 60 to 120 days. It |
| limits. What happens if the business grows past the | | | | helps you meet ongoing and recurring expenses such |
| limits of the line of credit? Many healthcare | | | | as rent, payroll and lease payments. Medical factoring |
| professionals usually find out, the hard way, that the | | | | is an ideal solution for medical offices, rehabilitation |
| bankers that were quite happy to extend the first loan | | | | centers, medical testing and diagnostic centers, medical |
| or line of credit will not be so helpful at increasing it. | | | | supply companies and small to mid sized |
| Unfortunately, bankers absolutely hate it when | | | | hospitals.Invoice Factoring GroupInvoice factoring |
| businesses came back to the well for more money.If | | | | Group can provide you with a medical factoring and |
| you look at the problem at hand, you will soon realize | | | | medical receivables factoring quote for free. Marco |
| that the perfect solution should have the following | | | | Terry, the president, can be reached at (866) 730 |
| characteristics. First, it should be able to accelerate | | | | 1922Copyright (C) 2006 - All rights reserved. Article |
| your insurance payments so that you can get them | | | | may be preprinted provided it is not modified and all |
| quickly rather than slowly. Second, the solution should | | | | links are kept live. |