When Should You Consider Accounts Receivable Factoring for Your Business?
- April 11, 2016
- Posted by: Admin
- Category: Accounts Receivable
Being a business owner with exceptional entrepreneurial skills will drive your operations efficiently. You may be a newbie or experienced; potentiality of a healthcare business lies in its finances. Very often, it has been observed, juggling between medical practices and managing administrative burdens, takes a toll on a budding healthcare business.
To give an impetus to your finances and to maintain a consistent flow of cash, accounts receivable factoring plays fundamental role to invigorate your healthcare business. The niche segment of healthcare service – accounts receivable factoring – lifts up drowning finances by buying old accounts receivable from your healthcare establishment.
Here are some reasons why you should consider A/R factoring:
- Claims submitted by healthcare service companies (Providers) to insurance companies (Payers) get denied for many reasons
- Such as coding errors, improper billing, and late submissions or missing documents
- While a few such denials are common among most of the providers, too many of them can adversely impact your credit ratings and financial credibility in the market, not to mention the damage it does to your cash flow
- If you have unpaid receivables lying around, why not sell them for some instant cash
- You can get paid up to 85% of the total claim value. A free evaluation by A/R analysts will tell you how much money you are eligible to receive for your invoices
- The factoring company has fast and simple approval system, and your application could get approved within just 72 hours!