How to Get Low Rates for Medical Factoring

How to Get Low Rates for Medical Factoring
How to Get Low Rates for Medical Factoring

For many doctors who are just starting their private practice, as well as for hospitals and nursing homes, it may not be easy to get the startup capital or operational cash flow needed to operate your business. When banks aren’t as open and enthusiastic about lending money to medical professionals and businesses, factoring becomes the only real possibility. You just have to hope that you get low rates for medical factoring so that you don’t overpay your financing.

Sure, the more innovative medical companies get millions in financing, but for most health clinics it doesn’t come easy. There’s also the very distinct possibility that you haven’t paid off your student loans yet. And if that’s case, the government may even ban you from billing Medicare and Medicaid to get you to pay back your loans first.

But how do you get low rates? It’s not as easy as just checking Google for low rates, however. Just because a factor boasts that it offers rates as low as 1.5% a month doesn’t mean that such a rate will apply to your business.

What you need is the right medical factor, that’s already configured to specialize in your industry. Here are some things you need to check:

  • The factor should have extensive experience working with companies or clinics like yours. By doing so, you’ll know that the medical factor knows which procedures and processes work best in your case. They already have a basic working system in place, and all they need to do is to tweak it to fit your situation. They don’t have to set up a brand new system from scratch. That’s means less work for them, and lower rates for you.
  • They already have prior experience with health insurance companies you normally deal with. Factoring provides you with the advance money you need to run your clinic, but it all depends on whether the paying customer actually pays on time.

For doctors that usually means insurance companies. You may be able to get low rates if the medical factor has worked with these insurance companies before, and the factor has confirmed that the insurance company does pay in full and on time. They no longer have to do extensive background checks on the insurance companies, as this has already been done before. It also assuages any worries that they won’t get paid back.

It also helps if you only deal with a select group of insurance companies, which helps lessen the worries of the medical factor. The more insurance companies are involved, the higher the risk of not getting paid.

  • You give them high-value invoices. It would be better if you have only a few patients, but each one owes you a lot of money for your services. This is better than dealing with numerous invoices worth very little money. For the medical factor, each invoice requires the same amount of work to process, so it would be beneficial for everyone if you only submit high value invoices.
  • You have a long term relationship with the medical factor. Medical factors charge more for short term deals. It might be better to find a factor you can trust and do business with them for the long haul.

Find the right medical factor, and you’ll get comparatively low rates for medical factoring.

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How to Get Medical Factoring Fast

Among the many independent businesses today, the medical community (including health clinics, doctors’ offices, and small hospitals) is an industry that’s often in need of a ready supply of cash. That’s because in general their payments come from insurance companies, which are notorious for taking a long time to pay. You’d be lucky to get the payment within 60 days. Sometimes it can even take 120 days before you receive any payment. Unfortunately, the bills you need to pay can’t wait that long, and your payments for your rent and utilities, and payroll, as well as payments for your medical equipment must be made ASAP.

Among all the possible solutions, factoring (which involves exchanging accounts receivable for up to 90% of its value right away) can be the best answer, as the likelihood of getting approval is better and the process is faster when compared to applying to a bank for a loan.

While factoring is a very convenient solution for this problem, you also need to figure out how to get medical factoring fast. One way of doing so quickly is to consult with other members of the medical community for any recommendations regard factoring companies. A factoring broker may also identify which factoring companies can act quickly enough for your needs.

As an applicant, you can also help ensure that the process goes smoothly by making sure you do the following:

1.     As much as possible, avoid hand written applications.  It’s better if a form can be filled out online. But if the only option is a hand-written application, make sure you do so legibly. Have a secretary or a nurse do it if that’s not possible in your case.

2.     The application will also likely require you to include some documents, so make sure you already have these files with you. If a certain document can’t be provided, discuss the matter with the factor so that a suitable alternative can be suggested. Your inability to include all the required documentation or the explanations as to why a specific document is missing will be regarded as unprofessional. 

3.     Make sure all the information you provide are factual. In fact, you need to disclose all relevant information without first waiting for the factoring company to ask for them. Factoring companies as a rule search public records to confirm that the information you disclose matches what’s on record.

4.     Try to include a single-page write up that summarizes your clinic’s situation. Tell them about your situation: your challenges, your customers, and your upcoming opportunities. This can help round out the info the factoring company receives from credit managers. Just make sure that the write up is concise and to the point.

5.     You should also fill out the form and send all requirements at the same time. Doing so ensures your application will be processed right away.

Many medical clinics need a quick infusion of cash for day to day expenses in the office. So make sure you do your part by learning how to get medical factoring fast by following the guidelines above. 

Medical accounts receivable factoring | We offer fast Medical receivable factoring

Fast Medical factoring
Medical factoring is excellent for small, private practices that don’t have the money to move their business forward in the moment.

Medical accounts receivable factoring is sometimes a necessary part of running a small medical practice or a private office that takes in new patients because it’s the only way to ensure that the business stays afloat, moves forward, and can expand as needed. It’s just one of the most essential ways to help get that much-needed working capital to move the business in a good direction, even when you don’t have the money yourself. It can be hard for a struggling healthcare specialist to move their business in a positive direction when their capital is held down.


Why should you have to wait one to three months to get the payments you need from your patients, when there are medical accounts receivable factoring companies that can give you the money up-front for those invoices so that you can have the working capital to move forward. You can get cash advanced on your accounts receivables in less than 24 hours in a lot of cases.


What is medical factoring? Factoring is taking the accounts receivable of a business and turning them into cash when the outstanding invoices are sold to a “factor” for a discount. It’s true that you’re not going to get the same amount of money for your invoices, but you are going to get close to 80%, and you are going to get the money right away, which makes it kind of worth it. Accounts receivable factoring gives the business the immediate cash stream needed to manage its function in a more efficient way.


A lot of businesses just haven’t considered factoring when it comes to looking for financing, and that is a darn shame. They might not understand factoring or how it could help them. They need to realize, however, that factoring is one of the oldest methods of offering working capital to help businesses deal with their cash flow needs.


Cash flow problems can always happen at the inception of a business, in the beginning stages of business development, or throughout periods of rapid growth. Cash flow can be a real problem in the healthcare industry because the completed work might not be paid for, for one to three months after the invoice is issued. So, a lot of businesses try to apply for small business loans.


However, the ordinary kind of borrowing increases the business expenses, and it often necessitates more collateral too. This is not something that a lot of doctors relish, and they don’t want to come up with a lot more money to pay back the loans, when you take interest rates and terms into consideration, but they are unaware of the alternative of medical accounts receivable factoring.

The factoring company will just evaluate the strength of the client’s accounts receivable, and based on the credulity of the doctor and the patients, the company will give money for the accounts that haven’t been collected on already. That is an excellent thing for small, private practices that don’t have the money to move their business forward in the moment.

Need fast Medical accounts receivable factoring? Click Here

Medical factoring – We offer Fast Medical Factoring

Fast medical factoring
Medical Factoring companies help bridge the gap between the instant you perform health services for your patients and when you collect.

Medical factoring is also called healthcare factoring. It’s a kind of factoring. If you run a personal or medical business that is just starting out, you are probably going to run into some cash flow problems. Every organization ever that has expanded has faced the real possibility of cash flow problems, if they didn’t start out with a ton of investment capital.

When companies are faced with difficulties with their cash flow, a lot of medical offices will attempt to get a loan for their company, or a line of credit. Even though business loans can perform well, they are not a cure for business ills. For beginners, they are hard to get. More critically though, there are sometimes maximums with them. This means that you could outgrow loan if your business is expanding at a rapid rate. That is a very crucial point because once you have outgrown a loan, it can be really hard to get a new loan.

Another alternative could be healthcare factoring. Healthcare factoring is basically a type of financing tool used to bolster healthcare offices. It can cut off 60 to 90 days that are usually required to get the claims paid, and it can accelerate the payment time to two to seven days. This can be a great benefit if loans that are slow-paying have put your business at risk of a missed payroll, missing payments of bills or even rent, hiring difficulties or delays in hiring, the funds needed to meet the payroll, and the funds needed to pay the vendors and the rent.

Medical accounts receivable financing are basically medical asset based loans or lines of credit that are not as expensive as factoring medical receivables. The company will be borrowing against a healthcare receivables pool based on the final realized value for the third parties billing.

Doctors, clinics, healthcare businesses, and healthcare offices should discriminate wisely and choose the kind of medical factoring entities that are going to give them the best deals. Healthcare providers face a lot of challenges in the economy of today. Asset based lending companies help bridge the gap between the instant you perform health services for your patients and when you collect.

Healthcare providers like durable medical equipment providers, radiology centers, and home healthcare centers are just a few of the entities eligible to get healthcare factoring loans. There are a number of other places that can get medical factoring cash too, like nursing homes, hospitals, rehab medical centers, physical therapy companies, and group practice physicians.

There are a lot of companies that understand that medical receivables are your greatest asset to help fund the growth of your business and help out with your cash flow requirements. You should be able to get the best potential terms the industry can offer you.

Private medical clinics, big rehab centers, and private doctors alike sometimes have cash flow problems and need the kind of cash infusion that medical factoring can provide.

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