Healthcare Factoring Companies – How to Choose
It doesn’t take an expert to know that the U.S. population is getting older and living longer. According to the Administration on Aging:
“People 65+ represented 14.1% of the population in the year 2013 but are expected to grow to be 21.7% of the population by 2040.”
So exactly what does this mean? It means the healthcare industry will continue to grow for the foreseeable future. So if you operate a company that provides healthcare related products or services to other businesses, and you’re unable to participate in this growth because of a lack of capital, you’re likely reading this very post because your search for the best Healthcare Factoring Companies has just begun! While there are numerous items to consider, below is a select list detailing just a few of the items we consider most important:
Industry Experience/Specialization
We’ve lumped experience and specialization into one group here because they always seem to go hand in hand. Firstly, the best healthcare factoring companies are those that have been proven over time. The “Next Big Thing” is all well and good, but it isn’t an actual success until it becomes “Tried and True”. Interestingly enough, we’ve also discovered that the healthcare factoring companies that achieve this milestone, are often laser focused on serving not just any old industry, but clients based in the healthcare space.
Competitive Advance Rates and Fees
One of the inevitable consequences of shopping healthcare factoring companies is the arduous task of comparing rates and fees. What’s most incredible is the extent to which they may differ from one financial organization to the next. What we’ve found is that rates that sound too good to be true usually are. They often come “with a catch” or additional fees that make the “true cost” much more than advertised. The flip side is that some offerings are so non-competitive that you wonder how that factor got any business? Unfortunately, most of their clients are probably businesses that just settled on the first funding partner they found. The takeaway is don’t be a “sucker” and don’t “settle”!
Same Day Funding
Work with a factor that is committed to getting your invoices funded within 24 hours or less. While there are situations in which funding a particular invoice or debtor may take longer, these should be the exceptions…not the rule! We live in a modern age with amazing technologies, there’s simply no reason why an invoice can’t be verified and funded within a 24 hour window. If this is that big of a problem for a factor, you’ve got to wonder if you’ve chosen the best healthcare factoring company to work with.
Summary
Clearly this is a very “short list” of what to look for, but we believe that any good invoice factoring company will possess them all. Our advice summed up into one sentence:
Don’t settle for anything less than a tried and true funding partner where competitive rates and same day funding are the rule and not the exception!
At Orion Business Capital, we believe in providing custom working capital solutions. We know your company has unique needs and that’s exactly what we focus on. If you’d like to learn more about our Healthcare Factoring programs, please contact us today, we’re always happy to help.