Medical Factoring Questions

Many members of the health care community, be they doctors, nurses, home health care providers, etc. may not be familiar with the concept of medical factoring as a strategic business option as a remedy to cash flow issues. For these people, factoring MEDICAL has created the following questions with answers for purposes of educating health care providers to options which they may have at their disposal about medical factoring.

WHAT IS MEDICAL FACTORING?

Medical factoring is when a primary capitalization source like factoringMEDICAL, purchases your accounts receivable. You get paid immediately for the amount of the receivables purchased, no longer having to wait the 60-90 days for insurance carriers to make payments. A fee, or discount, is generally included in the transaction.

HOW DOES THE PURCHASE OF MY RECEIVABLES RESOLVE MY CASH FLOW PROBLEMS MEDICAL FACTORING?

You receive payment immediately and therefore are able to utilize the cash in ways that will strengthen your business; e.g. advertising, purchasing new equipment, bringing in additional personnel, etc

WHAT WILL IT COST ME?

As one might expect, the costs can vary depending on a variety of factors including the average size of the receivable, average turnaround time, size of the practice, etc. The only reliable approach to learning your specific costs is to provide us specifics of your practice and have us determine your cost based on those figures; in other words, complete our application.

WOULD YOU BECOME A PARTNER IN MY PRACTICE?

No, but it might seem like it. The relationship factoringMEDICAL would establish with your practice typically lasts for one year and is renewable by both parties. Following the initial purchase of your current receivables, factoringMECIAL will continue to purchase your receivables generated for each successive week. Our role in the practice would be directed by you; if you want us to be invisible, we can be. If you wish us to be more active with billing/collection , we can. You decide.

HOW IS FACTORING MY RECEIVABLES BETTER THAN TRADITIONAL SOURCES?

A significant difference is that using tradtional soures is reflected on your balance sheet as debt, whereas having your accounts receivables purchased is a prudent use of your assets, ergo, the term asset-based solution. In addition, while incurring debt most traditional sources require repayment of the debt with cash, receivables factoring requires no repayment and no cash drain. Each successive week generates new receivables which we continue purchasing, thereby providing you with a reliable stream of cash.

IS THE PURCHASE OF RECEIVABLES CONSIDERED A SHORT OR LONG TERM SOLUTION?

Medical factoring could be both depending on how it is utilized. It provides an immediate infusion of cash, which solves the immediate crisis of poor cash flow and provides for regular cash flow throughout the course of the year

IF I WERE TO SIGN ON AS A CLIENT, HOW LONG UNTIL MY CASH FLOW PROBLEMS DISAPPEAR?

Once approved, we can wire transfer the capital into your business account within hours of our decision. This amount would be the initial capitalization and provide you with an immediate infusion of cash. The subsequent funding would then occur on a weekly basis, thereby providing you with a regular stream of cash.

IS THERE A DOWNSIDE TO PURCHASING RECEIVABLES?

More of a tradeoff than a downside. What occurs is that you gain the quick influx of cash and pay for it with a slight loss in the total receivables collected over the long term. The ability to utilize the funds while otherwise waiting for payment from insurance carriers, places you in position to better pursue improvements to your practice- be they additional personnel, increased advertising, taking advantage of cash discounts, improving your credit rating, etc. All of these steps would be impossible without the cash realized from this process.

WHY IS factoringMEDICAL THE PREFERRED CHOICE WHEN CONSIDERING THE PURCHASE OF MY RECEIVABLES?

Unlike other companies, FactoringMEDICAL does not charge any upfront fees; for processing your application, performing on-site due diligence, and/or other processing fees. Further, we can fund within as little as three weeks of our receipt of your completed application

WHAT SIZE PRACTICES DO YOU TYPICALLY FUND?

Our preferred size practice bills from $50,000 to $10,000,000 per month with larger practices being managed on occasion.

ARE THERE ANY HIDDEN FEES?

Of course not. As stated earlier, we do not charge a due diligence fee. Each arrangement is formulated according to individual factors which taken together contribute to the discount for your particular case. A 2% origination fee is deducted from the first funding.

WHAT IS NORMAL TURNAROUND TIME?

As little as three weeks following our receipt of the completed application. We are committed to getting an answer back to you as quickly as possible. If an arrangement is delayed, often it is due to additional time to get information to us. The sooner we receive the required information, the sooner we can act upon it. An on-site due diligence visit is required prior to the final decision being reached. This is to confirm the information submitted in the application as well as to perform other due diligence activities.

DO YOU PURCHASE RECEIVABLES IN OTHER INDUSTRIES, OR STRICTLY MEDICAL?

Strictly medical factoring, meaning physician private practices, group practices, clinics, temp. staffing, Medical Staffing, DME providers and other providers within the medical arena. We now purchase receivables for dentistry, chiropractic, pharmacies, and/or optometry also.

HOW LONG OF A COMMITMENT DOES THIS REPRESENT?

One year typically. Frequently, two to five.

HOW QUICKLY CAN YOU PROVIDE A PRELIMINARY INDICATION REGARDING OUR WORKING TOGETHER?

How does 48 hours sound? We are committed to responding within 48 hours to those who complete an Online Free Quote at the end of this site.

WHICH CLAIMS ARE ELIGIBLE FOR PAYMENT?

Most third party medical claims of qualified insurance carriers with the exception of Workers’ Comp, dental, optometry, and personal injury.

WHAT ARE THE MAJOR PHASES WITHIN THE PROCESS OF OUR WORKING TOGETHER?

The first phase is gathering all the information via the application packet. Once evaluated, if accepted, we issue a Letter of Intent which outlines the framework for how we could provide capital to you. Following our receipt of the signed Letter of Intent, we schedule the on-site due diligence visit and following that, if accepted, the initial capitalization occurs. Subsequent capitalization occurs on a weekly basis as we continue to purchase the receivables you generate.

DO YOU TAKE OVER THE BILLING FUNCTION WITHIN MY PRACTICE?

Your billing and collections functions remain under your control.

WHAT'S THE QUICKEST WAY TO LEARN HOW MY PRACTICE MIGHT BENEFIT FROM THE SERVICES OF MEDICAL FACTORING?

Simply complete the medical factoring Free Quote we will respond to you within two business days. Medical factoring can free up your cash problems by not waiting for insurance companies any longer. Medical factoring can benefits you, from small medical staffing company to large medical practice, " Cost you nothing to find out the benefits of medical factoring. "