Need More Working Capital?
PRN Funding can match you with the right funder and help you obtain the medical factoring your company needs. Healthcare institutions often face cash flow challenges because of the unique payment structure of the industry.
How Does Medical Factoring Work?
When patients use their services, healthcare companies typically bill through commercial insurers, HMOs or government programs like Medicare or Medicaid. After billing, medical providers sometimes wait months for these payers to pay the bill, as inefficiency and bureaucracy in the healthcare system makes for slow payments from third parties.
Delayed payment often becomes a major hindrance for medical providers. Limited cash flow interferes with a variety of pressing business matters including the ability to meet payroll, purchase medical supplies and pay bills.
Some healthcare facilities can take out working capital loans or credit lines, but banks often have strict requirements and limits that make it almost impossible to obtain funding. Many banks only work with large and well-established institutions.
Not to mention, banks are also hesitant to lend against accounts receivable. Medical factoring is an alternative cash flow option for medical facilities. A factoring company purchases an outstanding invoice from a medical facility and advances a portion of the cash to the medical provider.
Once the invoice is paid in full, the factoring company refunds the remaining balance minus a percentage fee.
Billing and factoring medical receivables can be tricky.
Struggling to Obtain Financing for Your Medical Facility?
PRN Funding has the perfect prescription. Call us today @ 216-504-1000
Why Work With PRN Funding?
PRN Funding can help get your outstanding invoices paid–we have arrangements and partnerships with the best and leading factoring companies that do medical receivables. PRN Funding understands the complex needs of healthcare institutions. Our expertise enables us to match medical providers with niche factoring companies to perfectly meet their medical factoring needs.