| Owning a healthcare business or practice can be | | | | Medical factoring allows you to finance your |
| very profitable and very challenging at the same | | | | business by using your slow paying insurance |
| time. Having to wait up to 90 days to get paid by | | | | claims as collateral. In effect it reduces the time it |
| insurance companies, HMOs and Medicare/Medicaid | | | | takes you to get paid from up to 90 days down |
| can wreak havoc on your company's cash flow. | | | | to a few days. You can use the financing to pay |
| This problem can easily be compounded if you | | | | rent, meet payroll and pay suppliers. You can also |
| have regular periodic expenses, such as rent and | | | | use it to grow your business. |
| payroll, which must be met. | | | | As opposed to other financing tools, factoring has |
| Going to the bank may be of some help, | | | | no arbitrary maximum limits. Your maximum |
| especially if you are a doctor, are willing to | | | | amount of financing is solely determined by how |
| personally guarantee a loan and own a medical | | | | much you invoice. The more you invoice, the |
| office. If you run any other type of healthcare | | | | more you can finance. Factoring enables you to |
| business that bills insurance or Medicare you may | | | | grow your business and eliminates having to wait |
| be out of luck. Banks almost always require | | | | to get paid by insurance companies and by |
| significant collateral and three years of audited | | | | Medicare/Medicaid. |
| financials. To make things more complicated, most | | | | Medical factoring is easy to qualify for. It works |
| bank financing has maximum limits. Much like a | | | | equally well for new and for established healthcare |
| credit card maximum, once you reach it, that is | | | | companies. If you cannot afford to wait up to 90 |
| the end of the line. But what if your business is | | | | days to get paid by your insurance carriers, you |
| growing? | | | | must consider factoring as a solution. |