Gone are the days when a home healthcare agency’s only financing option is a line of credit from a bank or a traditional bank loan. In fact, there are dozens of ways a home healthcare agency can fund its growing operations. However, one specific option business owners should consider is home healthcare invoice funding.
In a nutshell, home healthcare invoice financing is the process whereby an agency sells its accounts receivables to a third party (factoring firm) at a discount. Rather than waiting weeks or months to receive payment from Medicaid, Medicare or other governmental agencies, factoring firms advance cash immediately upon purchasing home healthcare invoices, which gives business owners the ability to maintain a positive cash flow.
All it takes is three simple steps to set up a home healthcare invoice funding account:
1. Contact a Home Healthcare Invoice Funding Company
There are thousands of fctoring firms to choose from. The trick is to find one that understands the intricacies of the home healthcare industry. Luckily, a simple Google search for “home healthcare invoice funding,” can quickly narrow down the playing field. Once you select an invoice funding firm to work with, you can usually complete an online application or call and speak with a home healthcare funding account representative to have him / her email and / or mail out a complete document package.
2. Speedy Home Healthcare Funding Application Review
Upon receiving a completed factoring application, the home healthcare funder will begin its due diligence process immediately. For starters, the home healthcare factoring company will thoroughly review your agency’s history. Keep in mind though that a home healthcare funding company does not require a long or spotless credit history in order for an agency to become a client. Next, the factoring company will determine if any liens related to your business exist, such as UCC, tax, or judgment. Finally, the funding company will conduct an extensive credit review of the agency’s current customers.
3. Quick Credit Decisions
Unlike having to wait weeks or months to be granted a loan, the turnaround time to be approved for home healthcare invoice funding is typically only 3-5 business days, and many times, it’s even shorter than that. Once the required documentation has been returned to the home healthcare invoice funding company, it’s reviewed immediately. If everything is in order, the invoice financing company sets a credit limit for the agency’s debtors, and the first funding is initiated.
Even though there are numerous ways that a business owner can obtain financing, home healthcare invoice funding is one of the best options available because home healthcare business owners can get approved quickly and have instant access to cash all through the sale of their accounts receivables.
Contact a Home Healthcare Factoring Company
There are thousands of factoring firms to choose from. The trick is to find one that understands the intricacies of the home healthcare industry. Luckily, PRN Funding is your solution to growing your home healthcare company. Fill out a form, or give us a call.
