Medical Factoring: Relieving Cash Flow Pains Without Debt
Maintaining a steady cash flow can be a challenge for medical practices of all sizes. While the cost of equipment, staff, and day-to-day functions can add up quickly, being able to meet financial obligations requires a constant influx of revenue. However, delayed and outstanding patient accounts, along with waiting on supplemental payments from insurance providers, can place a major strain on a practice’s finances. Medical factoring provides a solution for practices of all sizes to eliminate all of the above issues.
How Medical Factoring Works
Medical factoring is based around receivables from unsettled patient accounts. Instead of waiting 30 days or longer for patients to remit payments, or waiting months for insurance providers to make payments, practices submit their open invoices for medical factoring. The invoices are then turned into revenue or working capital and made accessible to the practice within 24 hours. This eliminates the waiting period on patient payments, and allows medical practices to catch up on a backlog of unsettled accounts.
Collection Services Are No Longer Needed
Traditionally, when patient invoices age out beyond the payment window, they are turned over to collection services. The problem is that collection services can add to the delays in payments, due to their own internal schedules. Sending an unsettled patient account to collection services can add up to 45 days on top of the already expired aging period, which translates to even tighter finances. By submitting open invoices for medical factoring, the need for collection services becomes outmoded and unnecessary.
Medical Factoring Is Not Debt-Based
Factoring services are structured around receivables. There are no credit checks run on your practice. Credit scores are preserved, and there is no debt involved. Factoring is not a loan. It is a means of leveraging receivables for immediate working capital to improve cash flow, and stay ahead of staggered payment schedules. Practices can even submit invoices as they are generated to eliminate payment schedules completely.
Learn More About Medical Factoring
If you would like to improve the cash flow of your medical practice without taking on additional debt, contact BG Capital Funding Group. Our team will work with you to structure a customized strategy to get your practice the revenue it is owed quickly and efficiently, in order to provide working capital and alleviate the strain on finances due to outstanding patient accounts.