Services: Medical Factoring Financing

Having to wait up to 90 days to get paid by insurance companies, HMOs and Medicare/Medicaid can be very challenging for healthcare professionals and medical equipment providers. If you need flexible financing that grows with your practice or business, medical factoring can help.

Medical factoring can get your insurance claims paid in as little as 2 days, providing your business with funds to pay employees, suppliers and rent.

What can medical factoring do for your business?

The biggest benefit from factoring your medical receivables is that your cash flow will become predictable. As opposed to waiting 30 to 90 days hoping your medical claims will be paid soon - factoring gets them paid - with certainty - in 24 to 48 hours. This allows you to better manage your business and meet your obligations.

Another benefit of medical factoring is that it grows with your business. As opposed to lines of credit that have fixed limits, medical receivables factoring has no limits per se. You can finance as many claims as you can generate.

How does medical factoring work?

Medical factoring is simple to set up and implement. The most important consideration to consider is that the factoring financing line is based on your net collectables rather than your gross collectables. Net collectables is the amount that the insurance company actually pays for the claims. Medical receivables factoring works as follows:

  1. You submit your claims to insurance companies, HMO’s and Medicare/Medicaid
  2. You submit copies of the claims to us (the medical factoring company)
  3. We advance you up to 85% of your net collectibles (a reserve of 15% is not advanced to offset discrepancies)
  4. You get immediate funds while we wait for the claims to get paid
  5. Once the claims are paid, the transaction is settled and we rebate any remaining reserves

Want an instant medical factoring quote? Get started now:

Click here for an instant online quote. We offer competitive medical factoring rates. You can also call us at toll free at (877) 300 3258.

Qualifying for medical factoring is easy and quick

To qualify for medical factoring financing, your office must file claims with 3rd party medical insurance companies such as PPO’s, HMO’s and Medicare/Medicaid. Unfortunately we cannot finance workmen’s compensation claims.

Setting up a medical receivables factoring service takes 5 to 10 days and most healthcare companies, established or startups, can qualify.

Medical factoring costs

The cost of factoring your medical receivables is based on the volume of claims that you decide to finance and on how well your business is run. Generally, if you finance a high medical claim volume you will qualify for lower rates. Medical receivable factoring rates range from 2% to 3.5% per month, based on these criteria.

Varies based on two variables. First, the creditworthiness of your clients or freight brokers. Second, your factoring volume. Usually higher volumes are factored a lower rates. Our freight bill factoring rates go from 1.5% to 3.5% per month, based on these criteria.

Want to learn more about medical factoring?

If you want to learn more about medical factoring, please visit our Medical Factoring Resource Center, which has a number of useful articles. Three of the most popular articles are: