Funding Hospital with Medical Factoring
If you run a small or mid-size business, you face some challenges that larger organizations may not encounter. Cash flow can be a serious concern for you, so you may look for some financial help to manage your obligations. Smaller hospitals or health care facilities are no different. You have a lot of responsibilities to worry about, so when insurance companies aren’t paying claims on time, or when patients neglect their bill payments, you can be in a world of hurt. Fortunately, medical factoring is available. This financing method is a great way to get a quick boost to your bottom line.
Factoring is common in a variety of businesses across numerous types of industries and professions. Many health care offices use it, especially if collections have become a problem. With factoring, you sell outstanding invoices to a third party, known as a factor. The factor will pay you a lump sum of cash which you will repay once the factor has collected the accounts.
Quick Cash, Easy Process
Small-business loans and other forms of financing from banks and financial institutions can take a lot of time. Not only is the application process lengthy, but even after you receive the funds, you may have to wait a week or more for the funds to arrive. Banks and credit unions review your credit, bank statements and other financial information before they can approve your application. With medical factoring, the factor won’t take these into account. Instead, you can get a fast and simple cash payment without worrying about a long waiting time or stringent approval rules.
What Can You Use it For?
It’s no secret that running a hospital, clinic or doctor’s office can cost a lot. You can use the factoring funds for just about any need you have. Many people use the cash to pay for medical supplies and equipment, while others will use it for payroll and other personnel needs.
You Don’t Need to Have a Perfect Financial History
Do you worry about getting the money you need if you’ve had issues with taxes or even bankruptcy? Medical factoring is flexible and is ideal for health care facilities that have struggled with cash flow or even with losses. The factor will help you every step of the way as you decide whether this method is right for your business.
Don’t stress out any longer about trying to collect from slow-paying insurance companies or delinquent patient. Medical factoring could be your solution to more disposal cash.