Medical factoring is called to help companies that bill private insurance companies, Medicare, or Medicaid, and face cash flow problems because of slow payments. Medical Factoring is also called Medical Receivable Financing and is used by healthcare providers and medical professionals of all specialties.
Medical Factoring or Medical Receivable Financing
Through Medical Factoring, the healthcare providers receive an asset-based credit line. The latter is based on the net realized value for their billings to third-party payors such as commercial insurance companies, HMO’s (Health Maintenance Organization), Blue Cross-Blue Shield, Medicare and Medicaid.
Sometimes, it takes too long for companies in the healthcare industry to get a medical claim paid. This is a major problem for them. The majority of medical insurance claims take 30 – 120 days to pay. As a result, healthcare providers can experience cash flow problems. Healthcare businesses of any size, especially new companies and those that are growing quickly, can be affected by this problem.
Medical Factoring from First American Merchant
Are you waiting up to 90 days or even more to get your medical claims paid? Medical insurance companies, Medicare, and Medicaid that are making slow payments can have a negative impact on your cash flow. This will prevent you from running your healthcare business.
Fortunately, there are respectable business funding providers like First American Merchant that offer low-cost and reliable Medical Factoring to companies like you. FAM is an award-winning alternative online lender and payment processor that specializes in the high risk sector and has an A+ rating with the BBB. Medical Factoring is a cash advance loan on future insurance receivables. With firstamericanmerchant.com, you can get access to Medical Factoring without challenges.
Medical providers that have accounts receivable with a net realized value (NRV) of $500.000 or less, can apply for a Medical Factoring program, which is a funding program designed to purchase your billings (net realized value) at a discount. Clients, which exceed $500.000 in accounts receivable (NRV) and are eligible for financing, will be proposed an asset-based receivable financing program that is priced at a prime plus schedule.
FAM’s mission is to provide capital to a nationwide network of healthcare providers, including but not limited to:
- Ambulance service providers
- Durable medical equipment providers
- Group practice physicians
- Home healthcare companies
- MRI, radiology centers
- Nursing homes
- Rehabilitation-physical therapy companies
- Sole practice physicians
Medical Factoring is ideal for anyone that accepts health insurance payments. You can get your funds within 3 business days. There is no fixed repayment period. Repayment rate increases or decreases based on revenue flows. Terms are 3-15 months. The application process is easy and hassle-free.
First American Merchant brings a real revolution in the way healthcare businesses access capital.
Medical Factoring is a great way to avoid being locked in a loan agreement that debits your bank account day in, day out, week in, week out, regardless of your cash flow.