Hurry up and wait. If you own a pharmacy that is billing private insurance companies, HMO’s and Medicare/Medicaid you know the meaning of that phrase very well. Hurry up and wait is what happens after you submit client claims for payment. You wait 30, 60 and sometimes 90 days before you get paid.
In the meantime, you still need to pay rent, meet payroll and pay your suppliers. Paying them or https://npfinancials.com.au/on time is critical for the success of your business.
So, what can you do if you cannot afford to wait to get paid? Going to the bank won’t help you unless you have been in business three years, have great credit, plenty of assets and can provide three years of audited financials. Without them, banks will seldom lend you a dime.
But there is a financing tool that can provide you with the financing you need. Not only that, as your sales increase, so does your financing. This tool will allow you to have the funds to pay rent, meet payroll and pay your suppliers. It eliminates the hurry up and wait game that insurance companies play.
It is called medical factoring.
Medical receivables factoring provides you with financing based on your slow paying insurance claims. As opposed to bank financing, medical factoring is easy to qualify for and can grow, as your business grows.
It works as follows:
1. You bill insurance companies, Medicare/Medicaid and HMOs as usual
2. You then submit your invoices to the factor for financing
3. The factoring company advances you up to 85% of your expected collections
4. The remaining 15% is kept as a reserve.
5. You get immediate use of the money. The factoring company waits to get paid
6. Once the factoring company is paid, the remaining 15% (less a fee) is rebated