Signs That Your Business Needs Medical Receivables Factoring

Is your medical office a good candidate for medical receivables factoring? It might be, if you recognize the following signs:

1.    You’re struggling to pay your bills each month because so many of your patients refuse to pay you on time for the services you perform.
2.    Your employees are wasting time tracking down the payments that patients owe to your office.
3.    You’re losing track of just how much money your patients actually do owe you.

These three signs are a sure indication that your medical office could benefit from entering a medical receivable factoring relationship with an outside factoring firm.

These arrangements are actually quite simple: You sell your past-due accounts receivables to an outside factoring company, hopefully one that specializes in the medical market. The key is that you sell these receivables at a slight discount from their face value.

The factoring company then makes a profit by collecting the full face value of the receivables and keeping this money.

Yes, your medical office will lose some money by selling its receivables off at a discount. But is this money worth all the frustration and anxiety that comes with trying to track down missing payments? And isn’t this small loss of income a fair price to pay to make sure that your medical office has enough liquid cash on hand each month to meet all of its payroll, rent and other debt obligations?

Running a successful medical office is challenging enough in these difficult times. There’s no reason to compound the stress and anxiety that you face by wasting time and effort trying to squeeze dollars from your patients. By outsourcing this job to a medical receivables factoring company, you make life, and business, that much easier for yourself. Working with an outside invoice factoring company just might make this one of your most profitable years.