Medical invoice factoring, or medical receivables factoring, is a financing method where a business sells its unpaid invoices at a discounted rate to the invoice factoring company. The financial institution, also known as the factoring company, that purchases the medical receivables sends an immediate cash advance based on the invoice value.
With medical receivables factoring, your business sells unpaid invoices to a third-party factoring company such as Riviera Finance. There are several key benefits to factoring. Let’s look at the top 7 benefits of medical invoice factoring.
7 Benefits of Medical Receivables Factoring
1. Get Working Capital in 24 Hours
Rather than waiting 30, 60 or 90 days for your clients to pay their invoices, you get paid immediately by the factoring company.
2. Speedy Service
Obtaining medical receivables factoring is fast and straightforward, which is crucial for businesses in the medical and healthcare industry.
3. Helps Your Overall Financial Situation
Enhanced cash flow improves financial security, making it easier to qualify for other financing options, such as business loans or funding in the future.
4. No New Business Debt
Medical receivables factoring doesn’t create new debt. Unlike loans that accumulate interest and become liabilities, invoice factoring leverages unpaid invoices to secure financing without incurring debt.
5. Helps You Grow Your Business
Confident in your ability to meet payroll, business expenses and more, you can expand your business, invest in new tools, equipment, or products, hire additional staff, take on new clients, or invest in marketing.
6. The Charges are Straightforward
A small fee per transaction with no hidden costs.
7. Funding is Fast
Unlike business loans, which can take months to process, medical receivables funding can be completed within 24 hours of receiving and verifying invoices.
Why Wait?
Start getting paid immediately
Businesses That Can Benefit From Medical Factoring
Invoice factoring works for many types of businesses in the medical and healthcare sector, such as:
- Home medical care services
- Medical coding companies
- Medical equipment providers
- Medical staffing companies
- Medical freight services
Medical Factoring vs Other Types of Funding
There are many ways to get working capital for your business. However, factoring has some key advantages over other common financing options. For example, it’s common to apply for a line of credit from a bank. To qualify for credit, you’ll need to show the bank your assets, which include cash as well as equipment. Smaller and newer businesses often have trouble getting enough credit to meet the needs of the qualification process.
ACH and MCA loans are another option you may want to consider. Automated clearing house (ACH) and merchant cash advance (MCA) loans are usually easy to qualify for, but the downside is that interest rates and lender fees are usually fairly high. This can lead to a downward spiral of debt that makes it hard to run a profitable business.
Applying for Medical Factoring is Easy
Any business that provides a service in the medical or healthcare industry should consider medical factoring. The main requirements to qualify for medical factoring are:
- Personal and business ownership identification
- Employer identification number (EIN)
- Corporate paperwork such as articles of incorporation, articles of organization, or other forms appropriate to the type of business entity you have
- Accounts Receivable Aging Report. This contains your outstanding invoices, including the amount and date due for each
Riviera Finance Sets The Standard for Medical Receivables Factoring
Riviera Finance has helped thousands of businesses get the working capital they need to maintain and grow their business. Riviera Finance maintains offices throughout North America to provide face-to-face service and expert financial solutions to small and medium-sized businesses. Find out why more businesses choose Riviera Finance for their medical factoring needs – contact us online today.
