Virtually all medical practices would get a tremendous boost by participating in medical factoring. You wouldn’t have to wait as much as 120 days to be paid by insurance companies for the services you have rendered. This can be critically important, because all medical practices are faced with the need to pay for operating expenses and medical personnel, whether they have cash on hand or not. Here are some of the reasons that medical factoring works so well with virtually all medical practices.
Financing is Rapid
Most medical practices face constant cash flow issues, being obliged to pay upfront money to handle operating costs and personnel payroll. When you need money quickly, medical factoring can supply that immediate funding to keep your practice afloat, so you don’t have to work wait for claims to be paid.
Obtaining approval for medical factoring is very easy, and is far less tedious and lengthy than applying for a loan at a bank would be. You also don’t need to have the superior credit line and other qualifications necessary for approval by a traditional lending institution.
Not a Loan
One of the great things about medical factoring is that it is not a loan of any kind, which means your medical practice is not taking on any new debt. Since medical factoring only involves the sale of invoices to a factor, the influx of money comes from medical bills which are actually being paid by the factor in lieu of insurance payments.
Flexible Cash Usage
Unlike loans from banks, your medical practice will not be restricted in any way in how it uses the upfront advance of cash. That means you’ll be able to use it for any business expense whatsoever, and you won’t have to justify it to the factoring company. Once you receive your upfront cash in exchange for medical claims, you’ll be able to spend that money on literally anything you need to keep your business operating.
Will Factoring Help Your Medical Practice?
It almost certainly will, so if you’re interested in finding out more about medical factoring works, contact us at Jasema Capital. Our financial specialists will be glad to explain how it works, and what you have to do to get started.