Understanding the Basics of Medical Services Factoring

In the health care industry, there are often two different departments that require the aid of medical services factoring. First there are the medical providers like clinics, hospitals, and private medical offices. Second are the vendors that provide services and supplies to the medical providers such as medical staffing agencies and those that provide medical transcription services. Each affect the other but when cash flow is slow they both suddenly come to a halt. So what is the solution?

 

Medical Services Factoring Creates Steady Cash Flow

The never ending complication is that medical providers like hospitals often have to wait for months before getting paid. This is because the transaction can go through several billing departments especially now since most patients pay using their personal medical insurances. Securing the payment from the medical insurance will take weeks due to verification and legal procedures. This is then going to go all through the hospital’s billing department a second time before it gets distributed to the proper departments that were intended to get paid in the first place. This last part also includes the vendors.

 

Because the process takes so long, medical service providers and vendors often have to slow down work or cut down on their staff to compensate. The only other option is to get a loan from the bank yet this can take just as long as receiving their fulfilled invoice. So what option is left but invoice factoring from medical services factoring companies.

 

How It Works

This is a very simple process. The medical billing department will take their invoices from insurance companies, financial firms, and others that will pay them in the weeks to come and sell them to a medical services factoring firm.

The firm will then process these invoices so that the medical provider can get all their payment in just days (mostly 24-72hrs) instead of waiting weeks. They will only get around 85-95% of the full invoice however as the factoring firm will keep the remaining balance until they paid in full. As soon as your customer pays the total amount you are given the remaining 10% minus the factoring fees, typically 2-3% . Now it will be the factoring firm to process those invoices and get paid in the weeks to come, making it much faster for vendors and medical providers.

 

This type of instant cash is better than loans because they are processed much faster and they often do not require good credit standing. Some factoring companies will check how the credit standing is for a medical provider or for their clients but over all this will not affect the pay out in many ways.

 

Another benefit is that you can get invoice insurance. This is very important for medical service providers since they should not be chasing after clients who did not pay their balances.

Without insurance the medical provider will need to pay the money back to the medical services factoring firm as penalty and chase the client to get their money. With insurance, the risk now transferred to the factoring firm. With the risks now taken out of the hands of the medical service provider and with cash flow always constant instead of having to wait for it to return, medical services factoring is often viewed as their financial savior.

To explore our Medical factoring option visit our website.

 

 

Choosing the Right Company to Handle Accounts Receivables Factoring

By: Chris Lanchech
 
cash-in-hand

Accounts receivables factoring, or invoice discounting as it is known in some places, is necessary for any new or growing business. It provides the needed capital for initiating production and it is a much safer and cheaper option than taking out a business loan. However it can be quite difficult to choose the proper factoring company since many of them offer different terms and fees. Here’s a list of things you will want to look into before striking a deal with any factoring business.

 

Read Customer Reviews

This is the first thing any business should do before they turn to a company for accounts receivable factoring. There are many websites that have unbiased reviews concerning factoring companies and you can even find video reviews on Youtube. When looking through reviews, the most critical aspect is to go through the factoring company’s credibility and customer service. Do they charge hidden fees? Was the process as quick and easy as advertised? How smooth was the communication between the company and their clients? Many reviewers are quite candid and blunt in their reviews so you’ll immediately get a good idea whether or not that specific factoring business can be relied on or not.

 

Check Their Experience in Your Industry

Most factoring businesses are also knowledgeable in some industries while others are flexible to handle several more. This is important to take note of because some industries have different financial structures. The way they pay clients and the way they handle open invoices could be different. If the factoring company you are considering does not have experience in your industry you might want to look elsewhere.

 

Shop Around for Quotes

Just because you found one factoring company that offers a good deal it doesn’t mean you can call it a day. Shop around and compare quotes. Sometimes they will lure you in with low fees but then get back at you with penalty fees, especially if your client goes bad and does not fulfill the open invoice.

 

Check Their Collection Procedures

This is very crucial because it can determine how well your relationship with other clients will evolve. Some factoring companies do not interact with your customers and allow you to collect the amount and then close the invoice. Others will openly interact with your customers and close the invoice on their own. Some businesses relate with their customers better if their debt collection and financial assessments with factoring companies is discrete. It is entirely up to you to decide which collection procedure is best and it is wise to know beforehand which type your factoring company of choice utilizes.

 

With these tips in mind you’ll be able to find the very best factoring company to handle all your invoice discounting needs. Yes, there are fraudulent companies out there and there are some that require more than others, but these elements will help you sort out the good from the bad. Accounts receivable factoring is inevitable for many businesses and doing business with a good factoring company is key to your success.

Factoring Company Benefits: Stabilizing Business Cash Flow

By: Chris Lanchech

 

Some businesses refuse to turn to a factoring company because they believe that doing so means they could incur more debts. But this is very far from the truth. There are many reasons why factoring your accounts receivable can be beneficial for you. Simply take the following into consideration:

factoring companies, company factoring
Neebo Capital specializes in the Factoring of invoice receivables for companies who maintain commercial accounts receivables.

 

Benefit #1: You Will Have a Starting Capital

If your client gave you a huge project, you can expect that the first few months will be quite difficult.

You won’t have any immediate funds to start with. You won’t have cash for orders, employee benefits and incentives, and production expenses. Most of the time, businesses take out a loan just so they can get started with work. But with the help of a factoring company, you’re getting paid for your work quickly. In a way, it’s like the client has already paid you 80% in advance.

 

Benefit #2: You Get Your Money Fast

Have you ever tried getting a business loan from a bank or a credit union? It could take two months for a loan of $60,000-$100,000. When you turn to invoice discounting the procedure usually takes no more than five days. In just five days you’ll have your invoice purchased and the money deposited to your bank account.

 

Benefit #3: Credit History is Not a Factor

A new business will not have good credit standing. This is because it has little to no credit history to show. A business starting to fall off the grid will have weak credit scores to provide. In both cases, getting approved for a loan can be tough. However, factoring businesses do not look into credit history. Instead, the company will assess the value of the open invoice and of the client that is going to pay for it. This means that a small or new business that is still thriving or a company already leaning towards debt can still get money up-front to regulate cash-flow and stabilize its finances.

 

Benefit #4: Having a Wealth of Funds in Preparation for Seasonal Demands

As months go by your business will see a flux in demands. If you put out several or all of your open invoices for account receivable factoring you will have a steady supply of cash right from the start to prepare you for these issues. You never want to be caught off-guard and factoring invoices is a sure-fire means of being prepared, financially.

 

If you need immediate cash without suffering from the downfalls of a bank loan, approaching a factoring company is a very smart – and in many ways the best – option you can turn to. Check out the various factoring companies online and decide which among them will offer you the best deal.

Factoring Invoices Is A Solution To Get Your Business Out Of Trouble

It is okay to admit your business was affected by the ‘great’ recession. If are still in business after taking a hit in the Factoring Invoices Is A Solution To Get Your Business Out Of Troublerecession you can pat yourself on the back. This blog is about the financial strategy businesses are using called ‘factoring.’

Have you ever considered selling your outstanding invoices? Well if you have then you have thought about factoring. Factoring allows you to establish a monthly credit facility anywhere from $10k to $10 million monthly. This allows you to have a pool of capital you can pull from by selling your invoices as soon as they come in.

Quite a few invoice factoring companies focus on buying outstanding invoices from businesses. You can be sure that you can establish a credit facility offering your business help in a financial crisis. If you want to need cash on had and you have outstanding invoices we recommended you visit Neebo Capital.

Invoice factoring is a great solution to get your business out of cash flow problems.

Remember the fact that the knowledge of the invoice factoring company you select is very important. Financial specialists even advise business owners to avoid working with inexperienced factoring companies. Because inexperienced factoring companies do not have experience in working with business owners.

 

For example: maybe there is a regulation in your industry that a younger/inexperieced factoring company might not be aware of, and this mistake can cost you big money in the long run. Trust me we have seen it. We get prospects from time to time come to us looking to leave their current factoring relationship.

It is recommended to sell your outstanding invoices or your accounts receivable to an experienced invoice factoring company.

Factoring Is Faster Than Small Business Loans

Well for starters, if you have ever received a small business loan then you know small business loans require a lFactoring Is Fasterot of paper work. Small business loans also require you to submit paperwork out the wazooo…

This is why many business owners are turning to factoring invoices as a stronger solution. Simply put there is not as much red tape, and the contracts for lending can be as short as 30 days.

Factoring Invoices has always been a financial method to raise capital.  Cash on hand allows businesses to expand, market, put on new employees, take advantage of supplier discounts, or just manage overhead better.

Additionally, credit is becoming more difficult to get for small businesses without years of financials or vendor references. Therefore factoring is a way to quickly raise cash for working capital needs.

As mentioned above, getting a bank loan can be difficult and take months. As opposed to factoring in which you can have funds within 2-3 days.

Approval for bank loans for small businesses is difficult to come by, as loan requirements get stiffer and stiffer in the post- credit crisis world.  Bank loans also require application fees, lengthy application procedures, and lots of paperwork and preparation. And don’t forget the interest on a bank loan.

DEBT

That’s right, a large benefit of factoring vs. a bank loan is that with factoring you do not add debt to your company. Factoring established a credit line against your incoming sales. A bank line establishes a credit line against you, your business and its assets.

Invoice factoring gets your business cash fast, without the paperwork and debt, this is why it is a growing finical tool for small business.

Factoring Websites Claim Unreal 1% rates?

 A quick online search shows that you will find a number of factoring companies that offer what appears to be very cheap factoring rates. Based upon what you search online, you will find claims saying you can factor your invoices for only 1%. Sometimes, the rates are even lower. How can this be? And in some advertised websites, the rates appear to be cheaper than traditional bank financing.
cheap factoring rates
Just how can factoring be cheaper compared to a conventional business loan that’s only reserved for prime customers with plenty of assets?

Let us explain this for you:

The key is to recognize how nearly all factoring rates work. Even though the rates might seem to be cheaper than bank financing, often they will not be.

Why?

Well first we need to evaluate how factoring fees are commonly evaluated. Factoring company’s commonly charge you a fee that will increase the longer that a invoice remains un-paid. This is sensible, the more time an invoice goes unpaid = the greater the cost.

Below are 2 popular techniques for determining factoring fees:

1. Ten Day Fee: This is certainly the most popular factoring fee structure. In this case, the factoring company prices a fee for a 10-day period. For instance, 1.00% for every 10 days the invoice remains unpaid, this fee adds up until the customers pay the invoice in full. The fee for the first 10 days is 1.00%. The fee for the second ten days is 2.00% and etc.

2. Daily fee: This is the most basic factoring fee model you are charged a daily fee for each day that the invoice is unpaid by the customer. An example of this would be a 0.30% fee per day. This equals about 1.00% for ten days and about 3.00% for every 30 days the invoice remains unpaid.

These illustrations have got one thing in common = the cost of factoring a invoice for ten days is 1.00%. Using this information, you could say factoring is provided at rates “as low as 1%” Definitely, just make sure your invoice are paid very quickly and in ten days or less.

in the event that you are evaluating factoring proposals, you should contemplate looking at the fee structure carefully to recognize what the total cost of factoring is going to be for you. The best way to find out – check with your factoring company for the cost of factoring invoices for thirty or sixty days. That will provide you with a good measure of the actual factoring fee cost.

If your business is experiencing cash flow issues and is in need of funding, give us a call 1-888-382-3766 or visit us online by clicking here

Neebo Capital.com Explains Factoring Invoices

Welcome to NeeBo Capital, this article was written to give you a better understanding of how factoring invoices works.

As you know
business owners need cash. However how do you get money for your small company when banks are unwilling to offer your company any type of funding?Our team would like to introduce you to accounts receivable factoring,a proven approach of obtaining investment capital swiftly. That way, you will make the payments required to keep your business afloat while reducing your risk amounts.Factoring invoices involves selling yourcompany accounts receivable to a company such as NeeBo Capital in order to obtain instant cash flow. The factoring company pays you an advance, which is a percentage of the total invoice (typically 80-95%). Your clients re-pay the factor, and you receive the remaining, minus a small factoring fee. This is a time tested method to keep your company cash flow growing.If many of your invoices are not paid on time, use NeeBo Capital as your factor. Your business depends on money to run, and factoring is a way to avoid waiting Thirty to 60 days for invoices to be paid. Factoring companys such as NeeBo Capital look at your customer’s credit history and offer you an advance and a fee.

Something to remember is the fact you do not have to factor all your invoices. You should not look to factor clients who usually pay rapidly and dependably. The loss of money from the factoring fee would be greater than the immediate benefits. By studying your invoices and choosing carefully which ones to factor you will increase your profits. You do not have to take the very first rate that a factor company offers.

In the event you do not feel like you are receiving a bargain, check if the factoring company can offer a reduce rate over time or even determine if you could get a greater advance at the start while the factor works with your customers. Most factor companies give lower fees to companies that use their services often. This benefits the factor in addition to your business by generating a partnership.So do not hesitate, start factoring your invoices with neebo capital.com today!

Meet Payroll Fast With Neebo Capital’s Staffing Factoring

This article is focused on using factoring effectively to meet payroll quickly

One of many consequences of the recent economic downturn is that organizations have become more guarded and conservative with their cash flow. For example, many  companies are conserving cash by paying their invoices more gradually.

In return, this has impacted smaller companies who depend on steady predictable cash flow to have the ability to meet their obligations. Also, smaller companies are also doing the exact same thing and striving to pay their invoices slowly as well. Ultimately, everyone’s cash flow is being affected.

The problem with this is that many small companies live one invoice to the next (not unlike paycheck-to-paycheck) and a hold up in invoice payments can quickly jam up their cash flow. And also since few small companies have any meaningful cash reserves, a holdup may affect their ability to pay vendors – and more importantly – their ability to meet payroll.

Missing out on payroll can have substantial negative outcomes that could in the end lead to the closing of the business. A line of defense to prevent a cash flow shortage is to develop a cash reserve. For businesses today this is easier said than done due to the fact most small businesses don’t have the ability to build a cash reserves.

However if you can build a cash reserve, your organization will be in a better situation to weather the inevitable storms that will hit your cash flow. If creating a cash reserve is not an option, then you should think about using a business financing solution that can enable you to cover payroll and other expenses if things get tight. Invoice factoring is a business financing solution which might be used to correct cash flow challenges relatively rapidly and without the hassles related with conventional financing.

It works by repairing the problem at the source. It supplies you a cash advance for your slow paying invoices, offering the cash you need to meet payroll and other essential expenditures. Using an invoice factoring remedy you can get rid of the uncertainty of client payments, enabling you to obtain a more foreseen cash flow.

One of many advantages of factoring is the most important thing you need to have to qualify for this type of financing is solid commercial customers. It’s ok if your customers pay slowly – given that they pay reliably. Aside from this, your business needs to be free of legal and tax issues. And factoring can be implemented fairly quickly – usually in a week or two.

One more advantage of factoring is that it’s tied directly into your sales. What this means is that it can be increased easily as your sales increase, provided that you are invoicing credit worthy customers. This makes invoice factoring the perfect solution for small companies with good potential customers that are hindered by cash flow problems.