Medical Factoring: How to Finance Your Healthcare Business Without a Loan

There are few bigger pains for healthcare industrybe able to grow with your business. So, if your
professionals than having to wait 30, 60 or even 120business 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 industrysolution should allow you to finance significant growth.
is riddled with complex billing, coding and processingMaybe three to five times your current revenues - or
rules that create very long payment cycles. This canmore.There is a solution that meets these criteria and
be very difficult for medical offices, testing andis available to the healthcare industry. The solution is to
diagnostic centers, medical supply companies, or anyfactor your medical receivables using a financing tool
healthcare related business, for that matter. There arecalled medical factoring. Medical factoring allows you to
always many ongoing expenses that can't wait. Thereaccelerate your payments from insurance companies,
is rent that needs to be paid, offices expenses thatHMO's or Medicare/Medicaid. It enables you to receive
need to be covered, and payroll that must be met.Thisa substantial amount of your net collectables within
situation creates a problem for most healthcaredays of billing, streamlining your cash flow
businesses. On paper, the business may look verydramatically.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 invoicesreceivables to a factoring financing company. The
(also known as accounts receivable) with little cash tofactoring company buys them - at a small discount -
show for it in the bank.When faced with tight cashand pays you with immediate funds. The factoring
flow, most healthcare professionals turn to theircompany waits to be paid while you get to use the
bankers. Medical doctors can usually qualify forfunds to meet business expenses. As opposed to
signature loans or lines of credit. Other businesstraditional banking financial products, medical factoring
professionals are not so lucky. In reality, a loan or linehas no arbitrary limits. You can factor or sell as much
of credit may help you in the short term, but will notrevenue as you can generate, making it the ideal
solve the main problem. Why? Well, loans are good forfinancing tool for growth.However, factoring is not the
buying equipment or large capital expenditures, but notbest solution for every situation. It works best in
for covering recurring and ongoing expenses. A line ofinstances where your main challenge is that you
credit is a better solution, but they usually have fixedcannot afford to wait to get paid in 60 to 120 days. It
limits. What happens if the business grows past thehelps you meet ongoing and recurring expenses such
limits of the line of credit? Many healthcareas rent, payroll and lease payments. Medical factoring
professionals usually find out, the hard way, that theis an ideal solution for medical offices, rehabilitation
bankers that were quite happy to extend the first loancenters, 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 whenhospitals.Invoice Factoring GroupInvoice factoring
businesses came back to the well for more money.IfGroup can provide you with a medical factoring and
you look at the problem at hand, you will soon realizemedical receivables factoring quote for free. Marco
that the perfect solution should have the followingTerry, the president, can be reached at (866) 730
characteristics. First, it should be able to accelerate1922Copyright (C) 2006 - All rights reserved. Article
your insurance payments so that you can get themmay be preprinted provided it is not modified and all
quickly rather than slowly. Second, the solution shouldlinks are kept live.