Medical receivable funding also called Medical Factoring is a plan that grants healthcare providers an asset-based credit line that depends on the net realized value of bills paid out to third-party payors which include Medicare, HMOs, Medicaid, companies that offer commercial insurance among others.
If you’re the medical provider with an account receivable whose net realized value (NRV) falls below and not exceeding $500,000, you are entitled to a medical factoring program— a financing program that buys your billings (NRV) at a discount.
Any provider with a NRV exceeding $500,000 and meets the selection criteria for funding will be offered an asset-based medical account receivable financing program valued at a prime plus plan.
Receivable Funding offers solutions for Healthcare businesses
Healthcare businesses often experience long delays from the time one offers a service to the time they eventually receive payments. This tiresome wait together with the bureaucratic and burdensome third-party billing procedures greatly slows down the cash flow of a business.
Therefore, this scheme aims at providing commercial funding to all healthcare providers nationwide. The list of eligible businesses include, but are not limited to the following; nursing clinics, sole practice medics, group practice medics, hospitals, MRI, laboratories, home healthcare providers, ambulance services, rehabilitation & physical therapy centers and radiology centers.
While most merchants in the above listed industries are aware of receivable financing and have used it to improve their cash flow and grow their businesses, a shocking majority of healthcare service providers have on no account heard of this service, and are not familiar with how it works. If only they knew the impact accounts receivable financing can have on their businesses…
Those who qualify
Anyone who is looking for solutions to the following problems can greatly benefit from accounts receivable funding.
- Seeking accounts receivable financing to clear payroll issues
- Looking for working capital
- Too new in the business to qualify for bank funding (any company under 3 years in service)
- Seeking acquisition financing
- Needs expansion strategies, as well as new healthcare facilities
- In search of post-bankruptcy financing
Medical accounts receivable financing is a good way to get the commercial funding you need to not only keep a steady cash flow but also improve your bottom line. If you haven’t begun enjoying its benefits, it’s time you start searching for a plan that fits your company.
Business Funding expert, Nathan Hale, founded First American Merchant with his eyes set on helping the backbone of our country, small business owners. His passions include writing/producing music, and travel. First American Merchant is America’s Best Medical Accounts Receivable Funding Company, serving both traditional and high-risk Businesses.