Can,Medical,Factoring,Help,you business, insurance Can Medical Factoring Help your Cash Flow?
As we all know to live in this world we have to perform some activity by which we can earn money. There are many activities by which we can earn money and meet the standards to live in this society. And from one of them is franchise. Franc Small offices have unique needs, and thatincludes document shredding. Designed with the smaller business inmind, the Dahle 20314 is a cross-cut shredder that offers Level 3security and brings you into compliance with federal regulations. The
Most healthcare businesses have to wait between 15 to 150 days to get claims paid by private insurance, Medicare/Medicaid and HMOs. Although most payments are made in 15 to 45 days, a simple change in billing codes or a request for additional documentation can add weeks or months to the expected payment date of a medical claim.However, if you own a healthcare practice, DME or testing center you have expenses that must be paid like clockwork. Payroll needs to be met. Rent needs to be paid. Equipment must be bought. Not surprisingly, all these expenses have one common element you either pay them or you go out of business. This leaves you with two possible options. Either you must have a cash reserve sitting at the bank or you need to get financing to cover the wait.Many healthcare businesses try to get a loan or a line of credit. Although they can work reasonably well, they have one serious drawback. They have limits. And once you reach them, you are usually out of luck if you need additional financing.The best alternative is to factor your medical receivables with medical factoring. Medical factoring provides you with financing based on your insurance claims, eliminating the wait and providing you with funds to operate your business. And opposed to traditional financing, you have no set limits. You can factor as many insurance claims as you can generate. Its really a tool for growth.Factoring is easy to implement and incorporate into your business. Here is how it works.1. You send your claims to the insurance company and to the factor2. The factor advances you up to 85% of your expected net collections3. 15% is not advanced and is used as a reserve to handle charge backs4. You get immediate use of the funds while the factoring company waits5. When the claim is paid, the transaction is settledSince factoring relies on the insurance companys payment habits and financial strength, it can be a great tool for new and growing businesses that may not qualify for or have exhausted their bank options.
Can,Medical,Factoring,Help,you