Physician Lien Financing For Practice Growth
Typically physician lien financing is utilized as a method of acquiring short-term capital in order to cover expenses involved with running a medical practice, and the cash necessary to pay the ongoing expenses has fallen short during a particular period of time. Usually the amount of work that has been performed during that period has been adequate to cover the bills, but the problem arises when the collections of the accounts receivable that are on the books are not adequate due to legal cases dragging out too long or issues involving collections stalling for other reasons. What is to be learned is that the money owed does not always provide enough collection to cover the bills, and physician financing options are usually considered as an option in this situation. Typical physician financing options through traditional outlets have consequences attached to them, from interest on loans to potentially losing necessary equipment that has been put up as collateral in order to secure a loan. Without a growth strategy in place that will somehow solve these issues, financing options of these types will only hurt the practice in the future by compounding the necessary monthly income with interest.
Physician financing through Med-Care Solutions has the ability to solve the problems that are illustrated above and provide the short-term cash necessary to sustain operations through accounts receivable purchases that do not add interest to the monthly bottom line. There is no risk of repayment penalties if the accounts cannot be collected and there is no collateral necessary in the form of physical assets. What many physicians do not realize is that this strategy can also be used to grow your practice. Generally, the growth of a medical firm needs a guaranteed monthly income so as to be able to purchase the necessary elements for expansion, the additional equipment, the additional staffing and added space. While simply seeing more patients may inflate the accounts receivable, it cannot give the guarantee of collections that would facilitate that growth. With Med-Care Solutions’ accounts receivable programs, a physician or medical provider can guarantee the amount collected each month by having the responsibilities and risks of collections shift to Med-Care Solutions. The medical office will receive payments on time and within a specific timeframe every month on the qualified accounts that are purchased. This type of situation gives the practice the access to the ongoing capital each month that can be projected that will cover the costs of expansion, thus creating a situation where there is no risk involved in growing.
When a typical loan in secured in order to purchase anything that is necessary to grow a business, that business must risk what it currently owns in order to secure the loan itself. The risks associated with growth involve the inability to predict the unreliable aspects of the process, and relying on anyone else to pay on time is very unsettling and dangerous. Risk is minimized or completely negated if you can have a guarantee on the amount of monthly money that is collected, and Med-Care Solutions is the company that can provide that option. Contact our friendly representatives today to discuss your physician financing options, and take the next step to growing your practice.