Medical Factoring

Medical Receivable Financing Solutions on a More Economical Basis

If you don’t presently use a third party to finance receivables, this might be the right solution to accelerate your cash flow and create access to an economical source of capital for growth financing.

If you already finance receivables, this program may greatly reduce the amount of time your accounting team spends generating and transmitting billing and collection information to your existing finance company. We also permit the eligibility of Medicare and Medicaid receivables which many lenders do not offer.

Healthcare Provider Challenges:

  • Increased demand for services due to Baby Boomer generation
  • Declining reimbursement rates and longer payment cycles
  • Difficulty accessing credit markets for needed financing, especially Medicare and Medicaid A/R

Insurance Receivables Landscape:

  • Typically more than 16% of total healthcare business assets tied up in Accounts Receivables
  • Average turn on receivables is 50 to 60 days
  • Insurance receivables increase with growing patient deductibles and co-pays

Working Capital Line of Credit Benefits:

  • Accelerated cash flow
  • Proprietary software updates billing and collection information on a daily basis
  • Superior connectivity to our bank’s lending platform reducing manual reporting requirements
  • Predictable payments through Lockbox Services