Medical supply companies in general are very profitable enterprises. However, most medical supply companies operate on a very tight cash flow. Unfortunately, the challenging billing procedures and slow payment cycles of insurance companies, HMOs and Medicare/Medicaid create a situation where many companies wait 30 to 60 days before getting paid.
Cash flow can get even tighter if the company's sales grow, or if the owners decide to open new locations. When this happens, most company owners try to obtain bank financing through a loan or line of credit. However, qualifying for bank financing is incredibly challenging as they will only lend money to a business that shows profits for three straight years and can provide audited financials.
There is a financing alternative in the healthcare industry that has been used with success with medical supply companies. This solution provides you with quick financing based exclusively on your sales. Furthermore, since financing is tied to sales, the line of financing grows as your sales grow. The solution is to factor your medical insurance claims using medical receivables factoring.
Medical factoring provides you with immediate financing based on your slow paying insurance and Medicare/Medicaid claims. Rather than waiting 30 to 60 days to get paid, with medical factoring you can get paid in a few days. This frees up significant cash, allowing you to finance operations, and more importantly, to buy supplies and fuel new sales.
As opposed to bank financing, where the bank lends you money, the factoring company buys your invoices and pays you immediately for them. The process is fairly straightforward. But more importantly, this also means that you are free from the traditional bank lending requirements. Medical receivables factoring is easier to qualify for, and often, the owners' personal credit is not a consideration.
Factoring your medical receivables can be an ideal solution for your medical supply company if your main challenge is that you cannot afford to wait up to 60 days to get paid by insurance companies. If that is the case, medical factoring should provide you with the working capital you need to operate and grow your business.
About Invoice Factoring Group
We can provide you with a free medical factoring, medical receivables factoring or invoice factoring quote for your healthcare company. Marco Terry, the president, can be reached at 1 866 730 1922.
Copyright (c) 2006 - Commercial Capital LLC. Article may only be reprinted if it is not modified and all links are kept live.
Advance Payday Loan
By: Marlon Jackson | 01/12/2009For your immediate need for cash, you can turn to advance payday loan for your needs but you have to check if you are qualified to avail for it.
Life Insurance - Changing Times
By: Michael Challiner | 01/12/2009How are you fixed for life insurance - do you have enough? The answers probably no, as there's evidence that there's a very big shortfall between the amount we have - and what we really need. So even if you're fairly up to date with your requirements, you'll probably need...
Sort Out Your Life Insurance Plans
By: Michael Challiner | 01/12/2009House prices rose dramatically in recent years. It's also true to say that things have calmed down a little now, but we have some worryingly high unemployment figures, which balance this. The result of these factors explains why an increasingly growing number of people are not getting into the housing...
Eco Gym: Where the Green Come to Pump Eco-Friendly Iron
By: Ezra Drissman | 01/12/2009Who is the target audience for a gym? Does that target audience change if the gym is a "green" one? How do you drive people do such a place and how do you let them know that it is an eco gym, without being too in your face with the concept? And who should consider opening such a business proposition in the first place? Is there really a market for the eco gym?
Taking Advantage of Low Interest Rate Mortgages?
By: Seomul Evans | 01/12/2009It's common pattern to enforce for a mortgage loan when purchasing a property; in which a lien on the property is given to the lender as confirming for the loan. Though a property with beneficial prize can assure you a good mortgage loan, the rate (rate of interest) applied on...
When Mortgage Refinancing a Good Option
By: Moe Tamani | 01/12/2009Refinancing is not a smart act for everybody. There are expenses and fees you'll have to pay when refinancing your mortgage. These fees and expenses are really similar to the ones you paid when you acquired your 1st mortgage. These expenses include a survey, estimates, insuring, and lawyer fees. Several...
Top Advantages of a FHA Mortgage Loan?
By: Moe Tamani | 01/12/2009When applying for a mortgage loan, don't forget to do a brainstorming session. Mortgage loan can be short or long. Its rate of interest may be fixed or variable or a combination of both. Loans possibly offered up under schemes. These schemes are perhaps provided by bank or Federal Housing...
For the Whole of Your Life
By: Michael Challiner | 01/12/2009Most insurance companies offer whole of life policies. These are policies which give you a guarantee that the sum assured on the death of an insured person will be paid in full to your beneficiaries. As whole of life cover is designed to carry through to the end of the insured...
How to Use a Factoring Company to Improve the Cash Flow of your Canadian Business
By: Marco Terry | 18/11/2009 | BusinessIs your business having cash flow issues? Read this article to learn how invoice factoring can help.
How to Finance your Company in Canada with Invoice Factoring
By: Marco Terry | 18/11/2009 | Small BusinessDo you own a company that needs financing? Read this article to learn how Canadian companies can use invoice factoring to finance their operations.
Freight Bill Factoring for Canadian Transportation Companies
By: Marco Terry | 18/11/2009 | BusinessDo you own a logistics company in Canada that needs financing? Read this article to learn about freight bill factoring.
Factoring Financing for Canadian Staffing Agencies
By: Marco Terry | 18/11/2009 | BusinessDo you own a staffing agency in Canada? Read this article to learn how to finance your Canadian staffing agency.
How to Use a Factoring Company to Improve the Cash Flow of your Canadian Business
By: Marco Terry | 18/11/2009 | BusinessDo you own a business in Canada? Read this article to learn how a factoring company can help finance your business.
How to Use a Factoring Company to Improve the Cash Flow of your Canadian Business
By: Marco Terry | 18/11/2009 | BusinessDo you own a business in Canada? Read this article to learn how a factoring company can help finance your business.
How to Use a Factoring Company to Improve the Cash Flow of your Canadian Business
By: Marco Terry | 18/11/2009 | BusinessDo you own a business in Canada? Read this article to learn how a factoring company can help finance your business.
How to Finance a Manufacturing Company with Invoice Factoring
By: Marco Terry | 03/11/2009 | IndustrialRead this article to learn how to improve the cash flow of your manufacturing company.