Medical Receivables Financing Program for United States ONLY!
Medical Receivables Financing Program for United States ONLY!
What is factoring in an invoice?
In an invoice factoring, a business sells its accounts receivable (invoice) to a third party (called a factor) at a discount. A company will sometimes factor its receivable assets to meet its present and immediate cash needs.
Healthcare Factoring vs. Third Party Medical Receivables Factoring
There is a lot of confusion and misinformation about the funding available for suppliers and professionals in the Healthcare industry. Let’s talk about the two types of accounts receivable medical financing available; Healthcare Factoring vs. Medical Receivables Factoring (or Third Party Payee Factoring).
Healthcare Factoring
Healthcare Factoring describes expertise in buying Invoices in a particular industry by the Invoice Factoring Company. Some Invoice Factors only specialize in one or two sectors. For example,.If you provide nurse staffing, medical supplies, transcription services, or other products and services to the healthcare industry, a Healthcare only Factor could help you. However, most factors are generalists. They are experts in credit and collection. Because of this, factors will buy invoices from any company as long as there is no THIRD-PARTY PAYEE.
Third-Party Medical Receivables Factoring
Factors understand that when you buy goods, you as the consumer typically pay for the products. However, there are some industries where the consumer does not directly pay for services received, but third-party payers reimburse the provider of those services. Healthcare is the first example of this in the US. Healthcare is 19% of the total GDP. In healthcare, those third-party payees could be Medicare, Medicaid, Commercial Insurance, Private Insurance, HMO/PPO, and Managed Care. The average time to collect for these types of Accounts Receivable can range from 90 – 180 days
Minium Requirement
$25,000/monthly minimum insurance receivables
1 year in business
FICO 500+
No bankruptcy or foreclosure in the last year
Must receive payments from commercial, private, or government insurance companies
Control Account Connection to Lockbox A lockbox is required through our banking partner Park National Bank, Member FDIC Subordinate to Bank and SBA loans
NO personal guarantees required
Most popular use of Funds §
Bridge Payroll
§ Marketing
§ Expansion
§ Equipment
§ Inventory
§ Training
Funds can be used for any business purpose
REQUIRED SUBMISSION PACKAGE
§ Completed Application
§ 6 months most recent business bank statements including all transfer accounts
§ Full aging report by insurance carrier/payor
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