An Entrepreneurial Mindset
David had aspirations of entrepreneurship ever since he graduated from college. Due to the ever-increasing demand for health care, he found an opportunity to start his own healthcare company specializing in medical billing. As word quickly spread about the company’s unparalleled customer service. David’s start-up medical billing company began getting more calls and business soared. As a result, David needed to hire more medical billing specialists to handle the new demand.
Because his customers took about 45 days to pay him for his medical billing services, David understood that he would not have enough readily available cash on hand to pay his employees on time. As a result, David began researching financing options. Unfortunately, because David’s company was relatively new, the bank he initially approached turned him down.
What is Medical Factoring?
Medical factoring is a financial solution designed to help healthcare providers and medical companies manage their cash flow more effectively. This type of financing provides quick payments for outstanding invoices, which is particularly beneficial for healthcare businesses that bill private insurance companies, Medicare, or Medicaid. These entities often experience cash flow problems due to slow payments.
In essence, medical factoring involves a healthcare business selling its receivables to a factoring company in exchange for immediate cash. This transaction allows medical companies to access the funds they need without waiting for insurance companies or patients to pay their bills. By partnering with a medical factoring company, healthcare providers can ensure a steady cash flow, enabling them to focus on delivering quality care without financial stress.
Medical Receivables Factoring Becomes an Option
David didn’t know what to do. He called his friend Steve, who is a broker for alternative financing companies. Steve informed David about accounts receivable factoring, which would help him stabilize his cash flow through the company’s growth period. Steve referred David to PRN Funding, LLC, who has a dedicated medical billing factoring program.
Medical invoice factoring and medical receivables factoring are two financial solutions that can help healthcare providers manage their cash flow more effectively.
David filled out an online application and within a half-hour, he received a call from Phil Cohen, the President of PRN Funding. David was pleased to hear that PRN Funding would be able to advance him funds on his invoices within hours of verification. He would finally be able to expand his medical billing business without having to worry about making payroll.
David was convinced that PRN Funding was the right choice, so he filled out the required documentation and mailed everything in right away. Within days of sending the paperwork, David had money wired into his bank account.
Benefits of Medical Factoring for Healthcare Providers
Medical factoring offers several significant benefits to healthcare providers, making it an attractive financing option:
- Improved Cash Flow: Medical factoring provides quick payments for outstanding invoices, allowing healthcare providers to manage their cash flow more effectively. This ensures that they have the necessary funds to cover operational expenses and payroll.
- Reduced Administrative Burden: Medical factoring companies handle the billing and collection process, reducing the administrative burden on healthcare providers. This allows them to focus more on patient care and less on financial management.
- Increased Revenue: By providing quick payments for outstanding invoices, medical factoring can help healthcare providers increase their revenue. This immediate access to funds can be reinvested into the business to support growth and expansion.
- Flexibility: Medical factoring can be tailored to meet the specific needs of healthcare providers. This includes the frequency of payments and the amount of funding required, offering a customized solution that aligns with the provider’s financial situation.
Business Growth with PRN Funding
With his newly built line of credit in place, cash flow was no longer an issue for David’s developing medical billing business, a common challenge faced by many healthcare companies. PRN Funding helped David feel less anxious about taking on new customers. Since signing with PRN Funding, David has been able to take on larger clients, enabling him to grow his business even more.
Do you provide outsourced medical billing services to healthcare providers who take a long time to pay for your services? PRN Funding’s factoring program advances cash on your medical billing invoices immediately.
