How to Spot the 2014 Best Medical Factoring Companies

Looking for the 2014 best medical factoring companies can be somewhat time-consuming if you are not fully aware of what qualities you should look for. To help you along, here are some tips that can serve as your guide, as you look for the best medical factoring companies of 2014.

 

1. Ask how the factoring company determines its fees.

 

If you believe that you need to canvass and compare, gather all the information you have obtained from factoring companies and assess them side-by-side. Prior to this, however, you should be prepared to provide them with the following information, in order that they may also assess you, and see if your medical business qualifies:

 

  • How many patients do you have (in the case of collectable invoices from individuals)?
  • How many insurance agencies and HMOs do you need to collect from (in the case of  collectable invoices from companies)?
  • Of the total uncollectable invoices, how many tie up your cash flow because of delayed payments?
  • How long has your uncollectable invoices been standing (from shortest to longest duration – this will help the factoring companies arrive at the median length of time for your pending invoices)?
  • What is the aggregate amount of your total uncollectable invoices?
  • What is the lowest and highest amount that has been uncollectable (this will help the factoring companies arrive at the median amount of your pending invoices)

2. Ask them for an advance rate and clarify how much cash they are willing to give in exchange for your outstanding invoices.

Factoring companies may be able to offer anywhere from 70% to 90% of the face value of your invoice. Finding out which among your options offer the highest advance rate can help you come up with a good decision.

 

3. Ask about of the factoring arrangement or contract, specifically regarding these matters:

  • What are the terms and conditions of the factoring contract?
  • Is there a minimum monthly volume of outstanding invoices?
  • What is the longevity of the contract?
  • Should you decide to pre-terminate the services of the factoring company, will there be any fines or penalties?
  • Is it possible to terminate the contract through an advance notice? If so, what methods are acceptable for informing the factoring company? What’s the length of advance notice that is required?

4. Ask if they will take charge of actually handling collections.

Some factoring companies take care of the collections while others don’t. It’s best that you find out about this beforehand.

5. Ask about all the fees involved, how much each fee is, and what is the nature of each fee.

For example, you can ask about the application fee, credit reporting fee, any fees for advances released on the same day of application (if this is possible), early termination fees, and the like.

By asking these questions upfront, you will be able to gather enough relevant and accurate information that can guide you in finding the 2014 best medical factoring companies.

You can compare Neebo Capital with other factoring companies to find out if what they offer is what you require for your medical factoring needs.

 

 

Published by

Chris Lanchech

Hi everyone, my name is Chris and I am a junior analyst at Neebo Capital and an inspiring blogger. We enjoy speaking with business owners and entrepreneurs who come to Neebo Capital looking for cash flow solutions. Give us a call toll free at 1-888-382-3766 or Visit us online at www.neebocapital.com

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