Using AR Financing For Your Dental Practice

For dental practice owners, having access to working capital, as well as maintaining a healthy cash flow, can be challenging. Waiting on payments from customers, not to mention supplemental payments from insurance providers, can place a severe strain on cash flow. However, many dental practices are using AR financing to maintain capital reserves.

What Is AR Financing For Dental Practices?

AR financing, or accounts receivable financing, is a means of leveraging open patient invoices for fast working capital. Instead of waiting 30 days or longer for patients to pay their dental invoices, AR financing provides a faster alternative. When a dental practice submits invoices for AR financing, they are converted to working capital and made available within 24 hours. Accounts receivable financing removes the need to send out reminders to patients, or transfer unsettled accounts to collection services, which can further delay payments by as much as 45 days.

Financing Without Debt

When a dental practice experiences a strain on cash flow, the short-term options are limited. Conventional thinking states that a short-term bank loan is a good idea to keep regular expenses covered until payments from invoices start arriving. Unfortunately, those payments will then have to go toward repaying the debt from the loan. AR financing is a debt-free option, because the value of the invoices themselves are used for working capital. This is a sale of receivables, rather than financing structured around debt. On top of everything, there are no credit checks run on your dental practice, so your ratings are preserved.

Making Accounting Easier For Your Dental Practice

AR financing gives you the ability to clear out the backlog of open patient invoices at your dental practice. The turnaround on both single invoices and entire batches is usually 24 hours or less. Looking forward, patient invoices can be submitted as they are generated, which gives a dental practice immediate access to working capital without having to wait on staggered payment schedules, or sending out notifications to patients about overdue payments. The process is fast, easy, and painless. Accounts receivable financing also frees up a number of accounting resources which would otherwise be dedicated to managing and hunting down outstanding payments.

Talk To The Professionals

At BG Capital Funding Group, we specialize in accounts receivable financing. If your dental practice is experiencing cash flow issues, or if you simply want to free up working capital tied to unsettled patient accounts, contact our office.


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