Medical Account Receivable Financing For Expansion
One of the most difficult industries within which to secure adequate financing in order to facilitate growth strategies is the medical industry. This is typically because the medical profession is a service-based industry that relies on several other industries in order to generate cash. While a typical service-oriented business takes cash payments from customers at the time that the service is rendered, many times the medical profession does not have this option due to the high costs associated with treatments and surgeries. Additionally, many of the patients that are being serviced are involved in legal proceedings that promise to cover the costs of services rendered only after the case is settled. Many times, the case itself has reimbursement numbers that are generated specifically from the costs of medical treatment, meaning that deferred payments from the insurance companies or those involved in the cases are in the best interests of both the patient and the opposing side. The physician, surgeon, hospital and treatment providers are left holding the bag until the rest of these parties complete their jobs, many times for months or even years. Because of this system of providing treatment with the hopes that payment will be received, it is nearly impossible to secure financing options that involved anything outside of collateral involving the very equipment that is necessary in order to provide treatments, creating a risk situation for the medical provider that for many is unacceptable. In order to expand your facility in order to adequately service a growing patient base, you need to risk your very ability to provide treatments, potentially ruining your practice if for some reason you cannot repay the loan and interest on time. For many medical providers, this is simply too much risk and not worth it. For those who are not willing to take the risks of traditional loans, there is the option of medical account receivable financing for expansion.
Medical providers who would like to expand their practices without risking their equipment to do so should consider the option of selling the collection rights to their qualified accounts receivable. Through this arrangement, the accounts receivable which are on the books and are in the state of pre-collection can be sold to a third-party financing firm like Med-Care Solutions, assuring immediate payment directly to the provider and not involving repayment risks if the account defaults. Account receivable financing is simply selling your accounts receivable at a modest discount, thus eliminating aging risks and default possibilities. You receive the money you deserve, for the services you have already provided and are hoping will eventually be collected. This guarantee of payment on these accounts allows you to not only have immediate access to the cash you need for expansion or any purpose, but also it allows you to potentially consider patients that you may have reconsidered at one point due to the risks that come with their account. Being able to know 100% that you are going to be paid for an account allows you to predict future cash flow in a way that you never have before, predicting your finances by how many patients you treat as opposed to how many patients pay. Medical account receivable financing for expansion is the safest method of growing your business, isn’t it time you found out how we can assist you? Contact Med-Care Solutions today.