Throughout history Doctors have been treating the ill through various medical techniques. Time has advanced medicine and technology, as well as created a great increase in the cost of the care that is needed for human survival. The majority of people have healthcare insurance, making it possible for them to get the medical treatment they need with little to no money out of their pocket. This leaves the Doctor waiting on the third party payment to meet his own needs.
Private practices seem to struggle the most waiting on third party payments. As they depend on payment for patient care to meet their monthly financial obligations. With insurance companies taking 30 to 90 days, some even longer to pay, it can cause a huge financial burden on any private practice. This is why so many Doctors, like yourself, have turned to Private Practice Financing. They are able to free up the money they need to meet their financial needs, meet the needs of their patients and continue to grow their practice each day.
What is Private Practice Factoring?
The private practice factoring process is offered to practices with a large amount of accounts receivable invoice they have not been paid yet. An factoring company reviews your practices accounts receivables and determine how they can best help you get your money. They do not rush third party payments, or turn to patients to make payments on their invoices, they simply offer your practice an advance on the money you are owed. This will get you nearly all of what is owed to you through third party payment, however much faster than waiting for the traditional route of payment.
The Private Practice Factoring Process
- The factoring company reviews your practices accounts receivables, determining how much of the funds they can offer to you. Typically the factoring company will offer 80% of the invoice total, with the remaining 20% held as a reserve in case payment is not made or it was not billed properly.
- The funds from the factoring company will be directly deposited into your private practices bank account within 24-72 hours.
- The factoring company then assume the responsibility to collect payment from the third party.
- Once the payment is made the factoring company will then return the remaining 20% of the invoice to your practice, minus any fee associated with their services.
Do Not Allow Your Private Practice to Get Stuck Financially
Private practices often face many cash flow issues. Unlike medical hospitals or practices associated with a hospital, there is no financial buffer within a private practice. This makes it increasingly difficult for many private practices to meed their financial needs when they have a long wait to receive third party payments.
While there is the option of your private practice turning to a traditional lender for a bank loan to cover costs while waiting on payments, it is not always the best option. Private Practice Factoring is simply giving you money they you have in advance, it is a form of secured loan, however you do not need to use any personal or business assets to obtain it. The factoring process frees up the funds many private practices need to survive, let alone succeed. Rather than waiting on payouts or taking out a high interest loan, allowing your private practice to get stuck financially, turn to a Private Practice Factoring company and get your money in as little as 24-72 hours.
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.