Selling outsourced medical coding invoices to a factoring firm is a great way for a business owner to ease cash flow tensions. However, if a medical coding service starts working with the wrong factoring company, then it could create a completely different kind of cash flow problem. Here are three questions medical coding company owners should ask to ensure that they find the right account receivable factor for their medical coding service.
Is Your Account Receivable Factoring Firm Familiar with the Outsourced Medical Coding Industry?
Account receivable factoring firms come in all different shapes and sizes. However, the best place to start is to try finding one who understands the outsourced medical coding business model. Choosing to partner with medical coding account receivable factor who understands the unique characteristics of your business ensures that the ongoing factoring process will run smoothly. Instead of wasting valuable time explaining medical coding industry jargon, traditional payment terms and / or day-to-day business procedures to a factor that is unfamiliar with your company’s industry, select a funder that already knows about the medical coding business. Doing so will let you focus your attention on more important matters-like growing your outsourced medical coding business.
Does Your Medical Coding Account Receivable Factoring Program Offer Flexible Terms?
There are a number of specific questions that a medical coding service owner should ask in regards to a factoring firm’s ongoing funding specifications. The questions below encompass the majority of those specifics:
- Is there a specific length of time that I’m required to remain in the account receivable factoring relationship?
- Do I have to sign a personal guaranty, whereby I would be held personally responsible for any unpaid invoices?
- Am I required to sell all of my medical coding accounts receivables?
- Am I required to factor a minimum amount of invoices? And if so, what penalties are involved if I do not meet the minimum requirements?
- On the other hand, is there a maximum funding amount that I cannot exceed?
Although there are some factoring firms who will answer NO to all of these questions, many will not. It’s important for a business owner to know the level of flexibility their intended factoring company can offer so he/she won’t be surprised later on in the financing relationship.
What Kind of Customer Service Does Your Medical Coding Account Receivable Factoring Firm Provide?
A good medical coding factoring firm is one who is available when its clients need it. Pay attention to response times for both email and telephone communications during the sales process. Take note of who responds to your inquiries as well. For example, some factoring firms assign personal account managers to each of its clients, whereas other companies have a team of employees handling each client’s account. Regardless of how many people are working to fund your outsource medical coding business, make it a priority to choose an invoice factoring company who offers a level of customer service that meets your standards.
Of course there are even more variables to consider when choosing a medical coding funding firm that could not be explained adequately in this article because of constraints on space. Just remember that there are a lot of factoring companies out there, each with their own unique practices and policies. It’s important to weigh the options of the all-encompassing package of what each factor has to offer before making a final decision. To find the best factor for your medical coding company’s needs, make it a priority to ask the questions shared within this article.