Running a medical practice is no easy task, and it requires a great deal of financial management. Fortunately, there are options available to healthcare professionals that can make managing finances much easier. Invoice factoring is one such tool that can help you get the cash flow you need for your medical practice without having to wait for payments from patients or insurance companies.
How Invoice Factoring Works for Medical Practices
Invoice factoring essentially involves selling your unpaid invoices to a third-party factor, and in exchange for an upfront fee, you are able to receive a large portion of the invoice amount immediately. This can provide you with the cash flow you need without having to wait 30-60 days or more for payment. This is especially beneficial if you are trying to cover overhead costs such as payroll, supplies, and other expenses. Invoice factoring also eliminates the need for you to spend time and energy following up with patients or insurance companies on unpaid invoices.
The Benefits of Medical Factoring
Additionally, invoice factoring can help protect your practice from bad debt caused by delinquent payments or non-payment from patients or insurance companies. The third-party factor assumes the risk of non-payment, so you don’t have to worry about losing out on an invoiced amount. Furthermore, invoice factoring can help improve your credit rating and allow you to access additional funding options in the future.
Overall, invoice factoring is a great financial tool for healthcare professionals who need immediate cash flow without having to wait for payments from patients or insurance companies. By leveraging invoice factoring, you can ensure that your medical practice is financially secure and protected from bad debt. To start factoring invoices for your medical practice, contact the team at Artis Commercial Capital today. We can make funds available within 24 hours with no upper limits, and free credit insurance on qualifying patient accounts.