Billing and the collection of unpaid invoices can choke a medical business’s cash flow. One way to mitigate this concern is to utilize medical factoring to ensure that the business’s working capital stream is less lumpy and more constant.

Why Medical Businesses Use Factoring

Medical factoring helps companies that bill out to patients, private insurance companies, Medicare and Medicaid, and have ongoing cash flow problems due to slow or late payments. Factoring is a simple financial option in which a business sells its yet-to-be-paid invoices to a third party for an up-front payment of cash. The company solves its cash-flow issues and no longer is responsible for collection as well.

Steps To Find the Best Factoring Partner for your Medical Business

Numerous medical factoring companies compete for your business. Here are the steps to take to choose the best one:

• Assemble a list of potential candidates using an online search 

• Determine how long each candidate has been in business and if they specialize in medical factoring 

• Find out the costs and fees involved with each firm factoring program 

• Ask if they will require a medical audit of your business 

• Make sure they cover federal entitlement programs such as Medicare and Medicaid  

• Check with the Better Business Bureau for each company on your list  

Once that process is complete, you’ll have whittled down your list to one or two of the best options. The final discriminator is subjective but important: Did you feel comfortable when interacting with the company?

Seek Expert Assistance

Connect with Pinnacle Commercial Group today to explore financing options for your business. They offer a full spectrum of financing options, including factoring for medical businesses. Their staff is currently awaiting your call and can answer any additional questions that you may have.