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Invoice Factoring for Healthcare
One of the biggest challenges to growing a healthcare business is the speed at which you get paid. Patients may take time with their bills and insurance companies are notorious for dragging their feet on payments, often waiting until the very last second before paying an invoice. Doctor’s offices aren’t much better, as they need to get paid in order to pay for the supplies and equipment they need. This can limit your business’s ability to grow, and makes providing quality healthcare services for your clients and customers a headache for you. Many healthcare businesses have found that the answer lies in invoice factoring.
What is Invoice Factoring for Healthcare?
Invoice factoring is one of the best ways to get cash quickly. Invoice factoring involves selling your invoices or receivables to a factoring company. Once that is done, the factoring company will provide you with initial funding, usually 80-95% of the invoice’s value. You will be paid the remainder once the invoice has been paid, minus the factoring company’s discount rate. The result is cash on hand when you need it to grow your business and keep operations running.
Benefits of Invoice Factoring for Healthcare
There are many benefits that healthcare firms can get from invoice factoring. The first is the fact that it gets your business cash on hand quickly. Use your cash to hire new staff, expand your offices or working areas, purchase new equipment, or anything else you need to do to grow your business. There’s no restrictions on how you can use the money, so you’re still in complete control of your business.
Another benefit that will be particularly appealing to healthcare businesses is that instead of checking the credit of your company, invoice factoring evaluates the credit of your clients. As a result you can get information on who is and isn’t likely to pay, and can get funding if your business is too young to qualify for bank loans or other funding, or if your company has had credit issues in the past.
Finally, healthcare businesses will benefit from invoice factoring because it will consolidate and centralize many core business processes. The result is that you can spend more time doing what you love and less time worrying about paperwork. This lets you grow your business without having to worry about the many accounting headaches that can come from other funding mechanisms.
As you can see, there are many benefits to invoice factoring for healthcare companies. If your company needs cash quickly, consider invoice factoring today!