Medical Receivables Financing – March
For the month of March we are placing the spotlight on a new client that provides medical and non-medical (assistive) home care services. The client has been in business for approximately two years, but has had difficulty growing her operation due to the cash flow constraints she experiences when billing Medicare and other insurance companies. Our client bills approximately $80,000 per month and has a current goal of reaching $150,000 per month. This client intends to use the immediate cash flow she receives from medical receivables financing to fulfill payroll and add employees as well as cover other operating expenses.
Payroll Funding with Medical Receivables Financing
Our home care client has found difficulty adding employees lately due to the cash flow restrictions she has experienced with her current payables system. She pays employees every two weeks, but does not receive settlements from Medicare or other insurance companies for at least 30 days. This inability to hire additional staff has also presented a major hurdle for growing her business. As soon as our client established her healthcare factoring account, she was able to begin recruiting additional home healthcare employees to meet the growing demands her business had previously been turning down. Furthermore, our client no longer had to handle her own collections as that task is assumed by the medical receivables financing company. As a result, she was able to re-assign her collections specialist to other administrative tasks, thus eliminating the need to unnecessarily hire another member for the office staff.
Invoice Factoring to Cover Operating Expenses
In addition to using healthcare factoring to help expand her business, our client also found the immediate cash flow beneficial to acquire the necessary supplies needed to support her growth. The company provides their home care providers with cell phones, laptop computers, and tablets when necessary. Furthermore, there is no longer the day-to-day question of whether any settlements will be received from Medicare or insurance companies. As a result our client can now manage all of her payables and overhead much more easily. The predictable cash flow that factoring healthcare receivables has provided offers the business an overall sense of increased organization, thereby setting it up for a more successful growth strategy.
Getting Started
Whether you have a need for medical receivables financing, payroll factoring, or working capital for a variety of other businesses, there is a good chance we can help. Orion Business Capital works with businesses of all sizes, including start-ups, across multiple industries. Feel free to call us today for a discussion surrounding the unique financial needs of your business. Even if we cannot help, there is a good chance that we can put you in contact with some of the best factoring companies around.