Invoice Factoring for Home Healthcare
If you are in the business of providing home health care medical services, you know that accounts receivable are often the largest asset on your balance sheet. While it looks good on the balance sheet, the practical problem is that you don’t get to use those dollars until you have actually been paid by customers. For home health care providers, this could mean months until payment from slow paying customers or third party payers like Medicare and Medicaid.
Home health care companies are often in the unique position of having provided goods and services, but will not be paid for a long period of time. This is a problem when expenses such as payroll need to be paid often—the funds are there, just not available yet.
Factoring of receivables is a way to unlock cash that’s tied up and get an advance right away. For home health care companies where cash flow is vital to success, medical accounts receivable factoring can be the difference between staying in business and floundering.
For providers of medical service such as home health care companies, factoring medical receivables is often the key to business success. It can free up cash for use in other areas of operation and alleviate the waiting period of long invoice terms. Get in contact with Factor Finders today to see if you qualify.
When Should Home Healthcare Companies Factor Accounts Receivable?
Factoring is especially beneficial when dealing with third party payors like Medicare & insurance companies, who take a notoriously long time to pay. Additionally, home healthcare companies should consider factoring if any of the following is true:
- You have been turned down for a bank loan
- Your agency is small, new, or has poor or no credit
- Your agency is well-established and would like to improve working capital
- You cannot afford to wait 30, 60, 90, or 120 days to receive funding
- You need funding soon to meet payroll, taxes, and agency operating expenses
- Your home health care receivables can be collateralized