Page 1

An Introduction To Medical Factoring

Courtesy of:

Neebo Capital “Most Trusted Cashflow Provider!”

An Introduction To Medical Factoring

Legal Disclaimers & Notices All contents copyright © 2010 by All rights reserved. You may share this document freely under the sole condition that it is not modified in any way and remains 100% as is. This ebook is presented to you for informational purposes only and is not a substitution for any professional advice. The contents herein are based on the views and opinions of the author and all associated contributors. While every effort has been made by the author and all associated contributors to present accurate and up to date information within this document, it is apparent technologies rapidly change. Therefore, the author and all associated contributors reserve the right to update the contents and information provided herein as these changes progress. The author and/or all associated contributors take no responsibility for any errors or omissions if such discrepancies exist within this document. The author and all other contributors accept no responsibility for any consequential actions taken, whether monetary, legal, or otherwise, by any and all readers of the materials provided. It is the readers sole responsibility to seek professional advice before taking any action on their part. Readers results will vary based on their skill level and individual perception of the contents herein, and thus no guarantees, monetarily or otherwise, can be made accurately. Therefore, no guarantees are made.

©Copyright 2013  Neebo Capital 

Page 2

An Introduction To Medical Factoring

A Typical Situation in The Health Care Industry If you own a business in the health care industry, then you know that you don’t always get paid upfront. Oftentimes, you get your money a bit later after you’ve provided the service or equipment your company offers. Sometimes this means that you get your money 45 days later, and in other cases the delay may be as long as 90 days. But one thing is quite clear—you don’t get your money when you really need it – now! If you find that this situation is already affecting your cash flow and preventing you from growing your business, then you might want to consider medical factoring.

Do You Need Medical Factoring? The normal delays in receiving your payments can have rather serious repercussions for your business, especially if you don’t have a huge flow of capital and you can’t get traditional financing. For example, you may be new in the business and find that banks are overly hesitant to loan you the money you need at a reasonable rate (or even at all). And even if you do have the option to get a loan from a bank, getting approval can sometimes take too long.

©Copyright 2013  Neebo Capital 

Page 3

An Introduction To Medical Factoring Many businesses in the health care industry may have several valid reasons why their money should be obtained sooner rather than later. For example, you may need the money right away for payroll purposes, as employees are not keen to wait around for two months before they get paid. You may also need the money to hire new personnel or to buy the medical equipment your business needs. Many of the marketing strategies that businesses employ also tend to require a bit of financing.

How Factoring Works Let’s say that you are supposed to receive exactly $1000 dollars from a particular invoice. That’s not necessarily the amount stated on the invoice, however. If you are dealing with an insurance company then you may not get the full amount, but the medical factor will have the ability to compute just how much of the invoice you stand to receive.


our agreement with your factoring company may enable you to receive 80% (this percentage varies from one factoring company to another) of the

amount, which means you get $800 right away. If the bill is fully paid in two months, and your factoring company charges 2% (this is also a variable rate which differs from one factor to another) per month, then the factoring company gets 4% or $1000, or $40. You then get sent the balance of $160.

©Copyright 2013  Neebo Capital 

Page 4

An Introduction To Medical Factoring There may also be a fee per invoice, which means that a single invoice that totals $100,000 will require you to pay much less to the factoring company should you instead submit a hundred invoices that total $100,000.

Services Factoring Companies Offer to Healthcare Businesses While factoring is becoming quite popular across the broad spectrum of the business world, factoring companies that specialize in the healthcare industry offer some services that general factoring companies cannot do as effectively. For example, a medical factoring company may be much more efficient in dealing with accounts receivable that are due from third party insurance companies and government insurances such as Medicare. Other companies may also have extensive experience in dealing with clients like medical centers, hospitals, and nursing homes. The kind of medical receivables you have will help you determine which particular factoring company can fit your specific needs. But advancing you the money you need for your business is just one service that a medical factoring company can offer you. Other services include:

 Ledgering – The maintenance of the accounts related to the receivables you sent to the factoring company. Many people who enter the health care industry aren’t all that ©Copyright 2013  Neebo Capital 

Page 5

An Introduction To Medical Factoring enthusiastic about the purely business aspects of their own company. After all, most people who get into the healthcare business are those motivated by offering muchneeded services first. Doctors, for example, are like this, and not every one of them who establish their own clinics are adequately trained to maintain proper records. If you are one of these people, then your factoring company can maintain your records for you and include all the pertinent data that should be noted.

 Collecting Receivables – Again, many businesses in the health care industry often have problems when it comes to collecting. Sometimes it would mean having to employ additional personnel to deal with this particular issue, and in some cases having to think about collecting receivables may distract you from your actual job of proving an important medical service. Again, a factoring company can do this work for you. If they have the right experience with your usual customers, then they can collect the receivables much more efficiently, and also make the proper collection records for your business. By outsourcing this particular aspect of your business, you may also cut down on your operating expenses.

 Protection Against Non-Paying Accounts – In regular factoring agreements, if your customer is unable to pay an account then you are required to send the factoring company the money they paid for the receivable. But some agreements are known as non-recourse factoring agreements; essentially the factoring assumes the risk of nonpayment. While there are certain situations in which you are still required to return the money— the customer is disputing the amount they have to pay or is alleging that you did not provide the product or service for which the receivable is for—for the most part a nonrecourse agreement protects you should the customer declare bankruptcy or becomes unable to pay.

Improving Your Ability To Provide Healthcare Services To wrap it up, factoring isn’t exactly a loan. It’s more like a sale of the accounts receivable. Therefore, the factoring company isn’t overly concerned about your financial dealings and how you will use the money you get in advance. A factoring company focuses on the ©Copyright 2013  Neebo Capital 

Page 6

An Introduction To Medical Factoring quality of the receivables—essentially, the likelihood of getting the money from the customer in the time stated. This speeds up the process of getting the money for your company, and allows you access to liquid assets much more quickly. With medical factoring, you can then improve your ability to provide vital services in the health care industry and grow your business at a rate that aligns with your vision. To get an instant quote for your business, click the link below:


Click Here To Get An Instant Quote

©Copyright 2013  Neebo Capital 


Page 7

Medical factoring medical receivables  
Medical factoring medical receivables  

In this short but informative report, you'll learn why so many healthcare business owners opt for medical factoring to meet their obligation...