Maryland Home Health: Healthcare Factoring

What is Home Healthcare Factoring?

Home healthcare factoring is a financing solution tailored specifically for home healthcare providers to effectively manage their cash flow and meet payroll obligations. This process involves selling outstanding invoices to a third-party factoring company in exchange for a cash advance. By doing so, home healthcare providers can receive immediate payment for their services, rather than waiting for customers to settle their invoices. This method is particularly popular among home healthcare companies as it offers a quick and efficient way to access working capital, ensuring a stable cash flow and the ability to meet financial commitments promptly.

Turn Your Medical Receivables into Fast Working Capital with Home Healthcare Factoring

Are you waiting as long as 120 days for payment of your home healthcare receivables? Maryland home healthcare factoring with PRN Funding can turn those invoices into cash you can use to grow your homecare facility. Maryland home healthcare factoring can provide growth opportunities by allowing businesses to invest in their expansion and development. Home healthcare factoring is an alternative funding option for agencies stuck trying to make ends meet while their customers extend payments well beyond their due date. With new healthcare laws going into effect, it is more important than ever that home healthcare agencies have working capital to close the gap between money going out and money coming in. Simply send your invoices for home healthcare provided, along with backup paperwork, to PRN Funding. We will verify and fund your invoices within 24 hours of receipt and advance you between 70 and 90 percent of the face value. When we receive payment, we will send you the remaining amount minus a nominal factoring fee.

How the Process Works

1. First, there is a short application and approval process–it generally takes 3-5 business days to get set up
2. Once approved, you can begin submitting invoices! Submit the invoices you’d like to factor to PRN Funding for verification
3. After verifying, PRN Funding will advance you up to 90% of the total invoice amount within 24 hours
4. Continue work and billing as usual while PRN waits to collect from your client
5. When paid in full, PRN will send you the remaining balance, minus a small fee for factoring

Benefits of Factoring for Home Health Aides

Factoring can be especially advantageous for home health aides, allowing them to concentrate on delivering high-quality patient care without the stress of cash flow issues. By factoring their invoices, home health aides can receive immediate payment for their services, enabling them to meet financial obligations such as payroll and other expenses. This financial stability not only supports their day-to-day operations but also provides the necessary working capital to grow their business and take on new patients. Ultimately, factoring empowers home health aides to focus on what they do best—caring for their patients.

Factoring vs Other Funding Options

Home healthcare factoring is often compared to other funding options, such as bank loans and lines of credit. However, factoring offers several distinct advantages. For instance, it provides a faster and more efficient way to access working capital, as it does not require a lengthy application process or collateral. Additionally, factoring is a more flexible funding option, allowing home healthcare companies to choose which invoices to factor and when. This flexibility makes factoring an attractive option for home healthcare companies that need to manage their cash flow and meet their financial obligations without the constraints of traditional funding methods.

Requirements to Apply for Factoring

To apply for Maryland home healthcare factoring, companies typically need to meet certain requirements. These may include having a minimum amount of outstanding invoices, maintaining a good credit history, and providing financial statements and other documentation. Additionally, factoring companies may have specific criteria for the types of invoices they will factor, such as the age of the invoice and the creditworthiness of the customer. It is essential for home healthcare companies to research and understand the requirements of different factoring companies to find the best fit for their business needs. By doing so, they can ensure a smooth and successful factoring process that supports their financial stability and growth.