Solve Cash Flow Problems for Home Health Agencies

Home healthcare agencies rely on invoice factoring to steady their cash flow. When waiting on unpaid invoices is getting in the way of keeping up with expenses like payroll, taxes and insurance, factoring companies can provide cash in hours. Unlike a bank loan, the money received by factoring isn’t a debt, it’s just your money provided to you sooner. The amount you can access also grows with your business. It’s no wonder invoice factoring has become a staple of the healthcare industry.

The single greatest issue facing home health care companies is intermittent cash flow. Many users of home health care rely on state agencies like Medicare and Medicaid to pay their bills, and waiting on government agencies for payments can cause companies to miss deadlines like payroll and taxes.

An increase in cash can help a home health care company meet payroll and taxes, pay vendors and outstanding bills, and invest in growth opportunities. Cash is desperately needed, but generating that most liquid of assets can be a problem.

Traditional lending institutions such as banks charge high-interest rates, require a credit check on your company, and months can go by before you see any cash. Large banks are also known to turn down small businesses such as home health care companies. This is why Factoring can be a great financial decision for your company. Invoice factoring companies are less restricted than traditional banks, so there is more opportunity for your business to get approved for a cash advance.

Factoring, or the selling of medical accounts receivable for cashless a discount, is the solution to cash flow problems for home health care agencies.

The Factor Finders team is dedicated to choosing the right factor for your business in order to maximize your cash flow that would otherwise be tied up in accounts receivable.