We Deliver The FUNDS
We Deliver The FUNDS
Financing Medical Providers - Factoring Services
0.69% to 1.59%
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Account Receivable Financing is our Business:
What is Medical Accounts Receivable Factoring?
Medical accounts receivable funding involves funding based on two types of receivables. The first type includes payments owed by insurance companies and government agencies like Medicare. The second type includes payments owed by hospitals and other buyers for everyday items or services.
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We offer factoring programs to medical providers that have accounts receivable with a net realized value (NRV) of $500,000 or less.
Fast Approval Process
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3 to 5 Day Initial Setup
Low Factoring Rates
We offer factoring programs to medical providers that have accounts receivable with a net realized value (NRV) of $500,000 or less.
Fast Approval Process
3 to 5 Day Initial Setup
Low Factoring Rates
Insurance, Medicare, and Medicaid Receivables are Funded by our Healthcare Provider Factoring Program
Healthcare Provider Factoring is a means by which the healthcare provider is granted a receivables based credit line that is based on the net realized value for his/her billings to third-party payors (i.e. commercial insurance companies, HMO’s, Blue Cross-Blue Shield, Medicare and Medicaid).
For medical providers that have accounts receivable with a net realized value (NRV) of $500,000 or less, we offer our Healthcare Invoice factoring program which is a funding program that purchases your billings (net realized value) at a discount.
Clients that exceed $500,000 in accounts receivable (NRV) and meet our criteria for financing will be proposed an asset based receivable financing program that is priced at a prime plus schedule.
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Commercial Medical Related Accounts Receivable
Commercial medical related accounts receivable refers to the money owed to a medical provider (such as a hospital, clinic, or healthcare company) by businesses or organizations that have purchased medical goods or services.
For medical and nurse staffing agencies, reliable cash flow is essential to meeting payroll obligations consistently. Medical staffing factoring services tailored to these industries ensure that staffing companies can pay their employees on time, manage operating costs, and grow their businesses without financial strain.
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In addition, medical equipment suppliers and other commercial healthcare businesses benefit from factoring as it allows them to focus on delivering quality products and services, rather than worrying about delayed payments.
By partnering with a specialized factoring company, these businesses can improve their financial flexibility and stability.
Ultimately, factoring companies assess the quality of receivables and the efficiency of the client's billing processes, ensuring that both parties are aligned for a successful financing partnership. This focus on receivable quality and billing competency enables healthcare providers to receive funding quickly and with minimal hassle, giving them the resources needed to thrive in a competitive industry.
What Is Usually Required In Obtaining Healthcare Receivables Based Financing?
Factoring companies or asset based finance companies that specialize in healthcare receivable financing will base their decisions on several factors and may vary from lender to lender. The first thing that needs to be evaluated is the net realized value (NRV) of the receivables.
The primary reason for this evaluation is to determine the quality of the receivables that are going to be considered for the “funding base”, also know as the borrowing base. Ineligible items such as private copay receivables, contractual reserves, and receivables past 180 days will not be considered and will be excluded from the funding base. This evaluation will determine the advance rate.
The second thing is to conduct a third party payer analysis and compliance review. Since the factoring company or asset based lender is going to collateralize on the receivables, this review will identify clinical liability issues that expose the client and the finance company regarding the receivables (Collateral). Verification of proper and current licensing, a review of current surveys and frequency of payment for each payer class will be evaluated.
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And last, "financial statements". Factoring companies are usually more liberal and flexible than asset based lenders due to the nature of the collateral that will be encumbered. Asset based lending institutions will be more diligent and base their funding decision on a good balance sheet, proof of profitability, and reviews mentioned above.
Factoring companies are more concerned with the quality of eligible receivables and competency within the clients billing department. Funding decisions are not based heavily on a balance sheet that may show major fluctuations but as long as it can provide proof of profitability, the factoring company may still go forward with funding the client.
Healthcare providers are considering receivables financing as a viable option in funding their growth. The demand for this type of service is much needed within the Healthcare industry. Receivable based financing creates predictable cash flow in an unpredictable payment cycle industry.
How Does Medical Factoring Work?
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The Benefits of Working with a Factoring Company built for the medical industry
At 1st Commercial Credit, we offer financial services specifically tailored to the complexities of the healthcare industry, such as slow payments from insurance companies and intricate billing processes. By converting your unpaid invoices into immediate cash, we help you maintain a steady cash flow, reduce administrative burdens, and focus on what truly matters—providing quality patient care.
6 Benefits Medical Providers Receive when Factoring with us:
- Cash Flow Increased : Factoring helps healthcare providers receive immediate payment for outstanding invoices, reducing cash flow gaps and ensuring steady operations.
- Expertise in Healthcare Billing: We understand the complexities of healthcare billing, including dealing with insurance companies, Medicare, and other payers.
- Reduced Administrative Burden: 1st Commercial Credit handles collections and follow-ups, freeing healthcare providers from time-consuming administrative tasks and allowing them to focus on patient care.
- No Debt Incurred: Unlike loans, factoring doesn’t add debt to the healthcare provider's balance sheet, as it’s a sale of receivables rather than borrowing.
- Faster Payments from Insurance and Government Agencies: Healthcare-specific factoring companies like us are familiar with the lengthy payment processes of insurance companies and government programs, speeding up payment collection.
- Financial Stability: Factoring provides a predictable cash flow, helping healthcare providers stabilize their finances, meet payroll, and cover operating expenses without worrying about delayed payments.
Healthcare Industry Factoring Cost (Rates and Fees)
When considering factoring services for your medical practice, understanding the costs involved is essential. At 1st Commercial Credit, we offer competitive and transparent rates, ranging from 0.69% to 1.59%. These fees reflect the flexibility and speed of our cash flow solutions, ensuring you can access the funds you need quickly, with no hidden costs. Whether you require immediate capital to cover payroll, manage operating expenses, or invest in your practice's growth, our factoring rates provide a cost-effective way to enhance your financial stability and focus on patient care.
FAQ About Our Healthcare Provider Financing Program
We specialize in providing capital to healthcare providers nationwide. We finance nursing homes, doctors, medical practices, hospitals, home healthcare companies, rehab clinics, MRI and radiology centers, ambulance service providers, laboratories and others with receivables payable by Medicare, Medicaid, HMO's, and private insurance.
No, nor certain types of longer turning worker's compensation, personal injury, or no-fault accounts receivable.
No, we don't.
We must do an audit and calculate the average percentage of collectible receivables within recent months, usually 4 to 6 months of collectible history to establish your NRV.
Yes, we now offer billing and collections aside from the financing. Each service stands on its own, if you no longer need the financing, you can stay with the billing and collections service or vice versa. We will have a vested interest in your success and by offering a billing and collections service, we feel that your business will be more efficient and successful.
Yes, at least one year.
We supply the integration that makes a file copy of your uploads and forward the exact information to us. This can be explained with more detail.
We have to establish a lock-box under your business name, and then forward the funds to us. More details can be obtained on this issue.
We have a program for staffing agencies in general. If your business invoices to a commercial account and not Medicare/Medicaid or HMO's, then you would fall under our normal temp-staffing funding program.
