How A Broker Can Help You Get Medical Business Factoring Loans

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!

The Five Keys to Obtaining a Staffing Company Loan

It’s not always easy to get a staffing company loan from a bank or from any other lending institution. It takes a lot of time to process, and your chances of actually getting a loan may not be as high as you’ve hoped. But it’s very common to need more staffing agency funding especially when your company grows and acquires more clients, so you may need to either persist in getting a loan or try to get funding from factoring companies instead.

So if you’re determined to get a loan, here are some of the considerations to which you need to pay particular attention:


Who are you and why should a lender lend you money? When you apply for a loan from a bank, you need to convince them that you have the character and the skill to pay back what you borrow.

That starts with looking professional, and you need to prove it in other ways as well. You have to provide records and proof about your educational attainment and work history. Your personal credit must be outstanding, and it will really help if you have excellent references from the people with whom you’ve done business in the past.

Business Conditions

You’re going to need a business plan, as well as any formal analyses you have regarding your industry. Your bank will want to know how you view the trends in your particular industry, whether you’re providing personnel for IT, for security guards, or for janitors.

You’re also going to have to explain how you plan to use the loan, and how you plan to repay the money in light of current economic conditions in your industry and your area.


A potential lender will also take a very close look at your financial state. Just how much in assets do you own, and how much debt do you carry? What are your current expenses, sales, and profit margins? How is the state of your company’s cash flow? Do you always pay your bills on time?

Aside from looking for evidence that you have the means to pay back the loan, the bank will also want to know your personal investment in the company. For example, if you’re just starting a staffing agency, the bank would feel better if you already have some money stored away to use, and you’re asking for a loan to add to that money. It shows that you’re seriously committed to your business. Banks, however, may not lend you money if you didn’t even bother saving some money to help fund your business.


This is often a problem for staffing agencies, since your company doesn’t usually have much in terms of assets and expensive equipment. You may have to offer a personal guarantee for the loan. Usually, you will have to put your own personal assets up as security. So if you have full ownership of your home, you will usually have to offer that as collateral..

With all these things to consider, it’s easy to see why factoring has become so popular! But if you look good in all these areas, then you stand a very good chance of getting that staffing company loan you need.

Trying to Get a Staffing Company Loan? Find Out Why Your Business Credit Rating May Be Too Low

When you’re running your own staffing company, it’s common to run out of working capital to cover payroll especially when you have lots of new clients. Sooner or later you’re going to need a staffing company loan. But you may not get the loan you need if your business credit rating is too low to qualify. This is the reason why small business factoring invoice for funding has become more popular, as your credit doesn’t matter as much as the creditworthiness of your customers.

When you’re trying to secure a loan, your business credit standing is crucial. What you may not know is that you may be inadvertently contributing to the low business credit score. Here are some possible mistakes you may be committing:

  1. You only depend on personal credit. It’s understandable to use personal savings and credit cards to start a business. But as soon as possible, you need to open one or two business credit cards. It has to be in the company’s name. While the credit line may not be large at first, what you’re really trying to do is establish a credit worthy profile. When you build your business credit, you increase your chances of getting a loan for your company in the future.
  2. You don’t regularly monitor your business credit. With so many hackers and identity thieves operating these days, you should really keep a constant eye out on your business credit. You can’t just check it when you need it, such as when it’s time to borrow money. Credit scores don’t really fluctuate wildly, so you can be notified right away when your credit score suddenly drops. You can then take measures to deal with the problem right away.

Monitoring your credit doesn’t have to be too much trouble for you. There are some monitoring tools you can use which will alert you when your credit score changes and some of these tools are even free to use.

  1. You don’t check for factual mistakes. It may surprise you to find out that a significant number of small business owners have discovered mistakes in their credit reports. One report published in the Wall Street Journal revealed that of the businesses that checked their credit reports, fully a quarter of them found errors or missed financial data that made them seem riskier to lend to.

So when you get your credit reports from credit bureaus, take some time to review the data to see that it doesn’t have any mistakes that damage your credit score. Check that the revenue figures are up to date, and your company is in the right industry classification code.

  1. You don’t pay your bills on time. For a business, paying late can have serious consequences. While you may think nothing of paying a day late in your personal life, in business paying late for just one day can adversely affect your credit score. So don’t pay late. Better yet, pay early because doing so may actually increase your credit score!

Your business credit is just one factor that will be checked when you apply for a staffing company loan. But having a very low business credit score may be enough for you to fail in getting the funding you need.

Minimize Your Need for Assets Based Lending by Tracking Your Business Expenses

Many small businesses find themselves in a financial bind every now and then, and they find themselves in need of assets based lending or account receivable factoring. They may get loans using their equipment as collateral, or they may get an advance on their accounts receivable to help take care of their expenses.

If you’re running your own business, you may find it helpful to use account receivable factoring. But it may also be a very good idea if you keep track of your expenses properly.

Here are some ways you can improve how you track your business expenses:

  • Hire an accountant. If there’s one thing that will really help you with your accounting, it’s a professional accountant. You can’t possibly match their knowledge regarding the various tax laws that apply to your business. You can try to do your own research, but that takes away your focus from running your business.
  • Always keep your receipts. Receipts serve as handy reminders of what you’ve spent for your business. And they’re also needed for tax purposes. So keep all of them, and make sure that they have the date and time of the transaction. Also write at the back of the receipt or an attached form the reason your business needed the expense.

To make sure you don’t lose your receipts, keep them in a secure place. It may also be very helpful if you get a digital image of your receipts in a computer file as well.

  • Keep business and personal expenses separate. That means you don’t use the same credit or debit card for buying business supplies and home furniture. That just makes it more difficult for you to track your expenses. By using a business credit card, then you have a handy way of tracking how much you’ve spent. In addition, you also don’t give the tax people any reason to think that you’re treating your personal purchases as business expenses.
  • Update your accounting weekly. Or perhaps you can do it daily. Just set a specific time during which you record your expenses in a computer file. You also take note of deposits you’ve made, client payments, and bank statements.
  • Use apps and software. There are several apps and programs you can use so that it’s easier for you to track your expenses. With these apps, you can track the mileage you’ve travelled, your billable time, and your various business expenditures. These apps are available for both iPhones and Android phones, which means you have them everywhere with you.

By tracking your expenses properly, you will discover which expenses aren’t necessary and eliminate them to reduce your total business expenditure.

How Independent Truckers Benefit from Trucking Factoring Companies

Independent truckers need a lot of funds to operate efficiently. It’s for that reason they may turn to factoring companies for their working capital, because getting a bank loan is usually an exercise in futility for them. The process takes too long and the chances of getting a loan aren’t good to begin with. And to really maximize the benefits, choose the best factoring companies which in this case are factoring companies that actually specialize in trucking.

How does it help you as a trucker if you only choose among AR factoring companies that specifically cater to your industry? Here are some advantages:

  • The application process is simpler and faster. You don’t have to explain to the factoring companies the specific nature of your industry. They already know all about it. And that means they also know how to investigate your customers quickly so that they can determine if they have the capacity to pay you what they owe and on time.

It’s actually a relief when you deal with these types of factors, because you can avoid a lot of troublesome miscommunication. They’re familiar with your needs, and setting up a factoring line is much quicker because they’ve already done it before numerous times. If you really want efficiency in getting your capital quickly, then you need a specialist factor.

  • Higher invoice value. Since these factors are already set up for trucking companies, they can arrange for you to get more money and at a faster rate. For example, while many standard factors offer 70% of the value of the accounts receivable in advance, with factors that cater to truckers you may get more money in advance. You may even receive up to 90% of the value in advance.
  • They provide real-time reports. With a smartphone, you can check what’s happening with your accounts right away while you’re on the road. You can see how much advance cash you’re likely to get, and you can check which of your customers are due for payment. The state of your finances becomes much clearer and you can access these accurate reports right away.
  • You’ll receive credit reports on your customers. When you apply for factoring, the factor isn’t really concerned with your ability to pay them pack. You’re getting money based on what you’re customers owe you, and so your factor checks on the creditworthiness of your customers.

You don’t have to hope that your customers will pay on time (or pay you at all), nor do you have to check their credit yourself. The factor can do this for you, and they will even give you their credit information so you are better informed.

  • You get other freebies. These factors are very much aware of what you need, and some of them may offer perks to win your business. For example, they may offer a fuel card if you do business with them.

So if you’re an independent trucker or you own a fleet of trucks, make sure that the factoring companies you consider are those that already cater to businesses like yours. A regular factoring company can help you, but specialist factors are way better.

3 Popular Myths about Getting Finance for a Business

If you’re like most small business owners, sooner or later you’ll need some financing for your business to get it started, get it going, or keep it afloat. Unfortunately, not every business owner knows all the pertinent facts about obtaining sufficient finance for a business, and that’s why some businesses close shop prematurely.

So let’s clear the air and get rid of all the myths that are still prevalent in the small business community, even though the Internet can provide a lot of information.

  • Banks are the only viable source of finance for a business. This is obviously not true that sometimes it’s hard to fathom why some people still believe this. Think about it. You can start a small business right now by delving into your savings, getting a second mortgage, and borrowing from your friends and family.

If you can’t get a loan from a bank, you can go to credit unions. You can go online and use crowdfunding. Or you can go to any of the factoring companies that offer surer and faster ways of obtaining additional financing. These alternative ways of getting funds for a business are now so popular that some experts are wondering whether or not small businesses still need banks.

  • If I don’t have a good personal and business credit score, no financial institution will provide me with financing. That’s not true at all, because factoring companies don’t really care all that much about your personal credit score.

In account receivable factoring, the factor advances you the cash while waiting for your customer to pay up in full. It’s all up to your customer whether the factor gets its money back, so it’s the credit score of your customer that’s much more important. The factor has to approve of your customer. So if they think the customer to whom you’re offering generous terms don’t get their approval, then the invoice generated by the transaction won’t be able to get an advance from the factor.

  • Alternative lenders such as factoring companies charge too much for their services. It all depends on what you mean by “too much”. When compared to the interest charged in a traditional bank loan, then perhaps this is somewhat true.

But a simple comparison between financing fees doesn’t paint an accurate portrait of what’s really at stake. What is on the line is your future profit. If you rely on banks and they don’t come through, then you may lose out on a deal that will give you a profit margin of 30%. But accounts receivable factoring is easier and faster to get, so even if you have to pay as much as 10%, then you still have 20% as profit.

In other words, relying solely on traditional bank loans can cost you the entire 30% profit margin instead of just 10%. And that means the bank loan is actually much more expensive for you!

Read up on alternative business to business finance sources and you’ll find that banks aren’t your only option. In fact, in some situations they shouldn’t even be your first option at all.



Questions to Ask If You Want to Find the Best Factoring Company for You

In 2014, GE Capital was named the best factoring company by Global Trade Review. GE Capital lent $250 million a day to mid-market firms and offered across the border financing to help their customers achieve global growth.

But that doesn’t mean GE Capital is the best factoring company for you. After all, you may not have global aspirations, and you may even be too small to be considered a mid-market firm. Even other highly recommended factoring services may not suit your circumstances.

To find the best factoring company for you, you’ll need to ask factoring companies some important questions, and you better pay attention to their answers.

  1. How Long Have You Been in the Factoring Business?

You’ll likely get the most efficient services from the factors that have been in business for a long time. Experience counts, because too many things can go wrong and it’s too risky to just wing it.

But you also need to ask a prospective factor about their experience in your particular industry. That’s because each industry has its own SOPs. For example, factoring medical receivables involves dealing with insurance companies or credit card payments from patients, while export factoring involves dealing with foreign customers and foreign commercial codes.

You need a factor who already knows their way around your industry so that they can help you navigate the business terrain. You don’t want to waste time having to explain to a factor how things work in your business.

  1. What Are the Terms of the Financing?

In general, if you can get flexible terms that let you get as much funding as possible, you’re in good hands. Most factoring contracts last for a single year, but some may be longer. You need to ask how much you’ll have to pay if you terminate the funding.

You’ll also need to know how much you can get in advance (along with any conditions), the fees you need to pay, and the penalties should your customer pay late (or not at all).

It’s up to you to compare the rates, although you can get better terms with increased factoring volume. You can also ask about any other services they can provide, aside from collecting the payments and evaluating the credit of your customers.

But the rule here is that the best factoring companies will be upfront about their conditions and fees. There should be no hidden fees, so clarify every scenario that may cost you money.

  1. Can You Handle My Business Growth?

One of the reasons why you may agree to factor your receivables is so that your company can grow. So if your AR volume per month may total $100,000 now, in the future it may increase to $200,000 a month. Can your current factor handle that kind of volume?

Ask a potential factor about the size of their typical account, and inquire about the factoring volume of their largest client. That should give you an idea whether they can handle a possible business growth.

When you find the factor that gives the best answers to the above questions, you’ve found the best factoring company for your needs.

The Benefits of Factoring Medical Receivables for Medical and Dental Clinics

The medical profession is a noble calling, and there’s not much doubt of that when you consider how difficult it is to maintain a clinic. Nowadays, many clinics close down because following an insurance-based reimbursement model is full of problems, and because expenses can outpace gross profits considerably. Even free health clinics are closing down because donors mistakenly believe that universal coverage is in play.

In any case, many clinics need steady funding to survive, and banks aren’t providing enough. This is why many clinics are turning to factoring medical receivables instead. In medical factoring, invoices are turned over to the factor which advances about 80% of the value of the invoices to the clinic. The factor also takes responsibility in dealing with the paying customers, which are often medical insurance companies along with Medicare and Medicaid. Once the payment is sent in full, the rest of the money is forwarded to the clinic after the factor has deducted its fees.

This arrangement offers several key advantages for medical and dental clinics.

  • They are likely to receive financing. The most obvious drawback to applying for a bank loan is that banks today are extremely picky in approving loans. In addition, even if they do approve a loan application in the end they take a very long time to process an application.

In contrast, applying for medical factoring is very easy. It doesn’t take more than a few days to know if you get approved or not, and approval is also more probable. Setting up a factoring line takes about a week, and then you’re set. Once you submit your medical receivables to the factor, you get the advance in a day or two.

  • The factor deals with the insurance companies. First of all, this is a headache that many doctors would rather not bother with, and the fact that factors take on this responsibility is a true benefit. This frees up clinic personnel from having to deal with insurance companies themselves, which are also notorious for never paying completely or on time.

Because of this service, clinic staff can concentrate on actually providing health care to patients instead of worrying about getting paid.

  • The clinic can improve its cash flow situation significantly. Many insurance companies can take 90 or even 120 days before they pay up, and many clinics can’t wait that long. It’s for that reason why the advances from the factors are so important. They can be used for many crucial purposes.

For example, they can be used to buy new medical equipment that can improve the clinic’s ability to provide quality care (and also to compete with other clinics in the area). It can also be used to cover the payroll, buy common medical supplies and pay for utility and rental bills.

Running a medical clinic is hard enough without funding, and many health care professionals realize this. At least by factoring medical receivables, they have a chance of continuing their efforts.



Why You Need Medical Receivables Factoring

Medical receivables factoring is a special type of financing that can help businesses in the health care industry. Whether you’re a medical or dental clinic serving residents in your community or a business that caters to health care centers, with factoring you can get the funding you need more readily than if you apply for a bank loan.

How It Works

Factoring is simple. Instead of waiting for an interminable length of time for your customer or insurance company to pay the invoice, you simply submit the accounts receivable to the factor instead. The factor offers about 80% of the value of the accounts receivable in advance, which you can then use for your own purposes. Once the customer finally pays the factor in full, you then can receive the rest of the money once the factor has deducted its fees.

Purpose of Medical Factoring

There are many possible reasons why a business in the health care industry will want an infusion of cash. One very common reason is to boost the cash flow to help pay for employees such as receptionists and nurses. It’s not really a good idea to miss a weekly salary payment when you’re running your own business and you rely on dedicated staff to help you out.

The cash flow can also help buy supplies that medical clinics need, such as bandages and gloves. These supplies need to be replenished on a regular basis, and that means you need to have your cash flow ready to cover the expenses.

Another good reason is to procure more equipment. Even if you buy used medical equipment, the expense can be very high and can really put a dent on your cash flow. But more sophisticated equipment can put you at an advantage over your competitors.

So how can you get the funding you need? Banks are not as reliable a lender as they once were, and that means you need alternative sources of funding. For many clinics and other businesses in the health care, medical factoring stands as a reliable source of funding that’s unmatched in the benefits it provides.

Special Concerns

Medical receivables factoring is much like other types of factoring in other industries. However, some aspects of it are unique to the medical profession.

For example, there is the matter of dealing with medical insurance companies. Collecting payments is a common task delegated to factors, and in this case it is an extremely welcome relief for a lot of doctors. But medical factors must be experienced in dealing with these insurance companies to avoid any surprises.

Medical insurance companies often contest medical bills, so as a result they do not pay for the whole amount stated in the accounts receivable. As such the factor must expect this.

Another common occurrence is the slow payment of invoices. It’s not terribly unusual for insurance companies to pay only after 90 or even 120 days. This means that medical factors shouldn’t charge exorbitant rates for payments that go past 30 days.

Medical receivables factoring can be very helpful for clinics. But you need to make sure that you get an experienced medical factor so that you can maximize the benefits.

Find Out Why the Demand for Business Loans USA Has Gone Down

Federal Reserve Chair Janet Yellen last month revealed to Congress that the demand for small business loans in the USA has not been very high and she said this phenomenon may be attributed to the financial crisis and the fact that home values have dropped significantly.

Such comments have stirred the world of small business where optimism is pretty high. Many small business owners are projecting better financial outlook in the near future in spite a 12% decrease in loan demand

But perhaps we are looking at it from the wrong perspective. The demand for business loans from traditional lenders has dropped and it may not have anything to do with the financial crisis at all. It could be because business owners nowadays have the option to seek capital online.

Solving the Small Business Capital Crisis

The country’s economy is on the rebound and job creation rate has reached an all time high in nearly 20 years. But although the decreased appetite for risk is evident across financial institutions in the US, startups now have another alternative: online lenders.

These lenders give out loans anywhere from $5,000 to $1,000,000 or even more. Some of these lenders require daily payouts, while there are those that agree to bi-monthly and monthly payments. Loan terms are usually anywhere from 3 months to 3 years.

Business Loans USA vs. Online Financing

For startup businesses, online lenders are especially more attractive than traditional lenders because they offer something that bank loans can’t. These include:

  1. Fast approval

Bank loan applications take an average of 2 weeks to get approved (or rejected) and it will take another 15-60 days before they will release the loan. Online loans, on the other hand, can approve (or reject) an application within a day and release your finds within 48 hours. Any business person worth his salt would see this as a great benefit. After all, time is money.

  1. Less stringent requirements


While banks and other financial institutions that offer business loans will have a long list of requirements that you need to comply, online lenders only require you to fill out an application form and send your bank statements to them via email or as an attachment to your application.

  1. Better loan terms


There’s no denying the fact that online creditors levy higher interest rates compared to traditional lenders. However, online platforms have lower overhead, fewer middlemen and lower expenses operate so they are able to pass significant savings to the borrowers. They can afford to offer better loan terms than banks.


Many small business owners are now turning to online lenders which collectively, has become a $3.2 trillion industry in the US alone. Sure, banks are still the ideal option for large companies looking for capital financing but for small businesses and startups, alternative lending is clearly the more practical option.


Alternative lending is also not just limited to business loans. There are other types of online platforms that also specialize in factoring, which is not technically a loan but a cash advance.