As a medical practitioner, you probably have a lot on your plate right now. You have patients to deal with on a daily basis. You need to check that you’re paying your people and your rent on time. You have to make sure that you’re stocked up on medical supplies, and that your medical and dental equipment are working well. So when you find that you need more capital for growth, it can be discouraging to discover that you have more work to do when you try to get the medical business factoring loans you need.
It may be tempting to just look for a factor online through Google. But not all factors are created equal, and some are worse than others. But a factoring broker may help you find the top factoring company for your needs.
- They can match you with a factoring company that specializes in medical clinics. Not all factoring companies are ideal for clinics. Here, the problem is that a factoring company must be experienced in dealing with government institutions like Medicare and Medicaid, along with the third-party insurance companies. This requires special skills and experience.
- Brokers can lead you to factoring companies that match your funding needs. Just how much money do you need on a monthly basis? Every factoring company has their own funding levels. A factoring company that only offers a few thousand dollars a month in funding may not have the financial resources to provide you with hundreds of thousands a month. At the same time, a factor that deals with huge volumes of invoices may not bother if you’re just a very small clinic that needs only a paltry sum of money.
- Brokers can help you find the most reasonable fees. The fee structure of factoring companies can be very complicated, so it may be difficult to use as a way to compare one factoring company from another. However, a broker can help explain the pricing structures, and make you see things that you may have overlooked.
For example, a factoring company may boast that they only charge 1% in fees for their services. But a broker can point out that this only applies for ten days, so if insurance companies take a long time to pay then you also pay more. Then there are other fees as well, including start up fees, fees for each invoice, and late fees. All this must be accounted for so that there are no nasty surprises when the factoring company takes its cut.
So should you use a factoring broker? It is probably a good idea. After all, in the health care industry we encourage patients to see a doctor instead of self-diagnosing and buying outrageously hyped-up supplements and cures online. It’s the same thing with obtaining medical business factoring loans. It may be a very good idea indeed to have a professional guide you through the process. The broker can help make sure that the financial state of your medical clinic remains healthy!