Many medical professionals say that managing their accounts receivable is one of the most time consuming task in their business management. Due to the long process associated with reimbursement from third party payers, the need for medical accounts receivable financing has greatly increased.
A/R Funding (Accounts/Receivable) is the selling of your account receivables for cash versus waiting 60 or 90 days to be paid by the Insurance company, Medicare or Medicaid.
A Healthcare Accounts Receivable Funding company purchases receivables of rated health insurance companies and governmental agencies. The monthly service fee (tax deductible) is a flat fee that is deducted from the remittances. The actual fee amount is based upon a number of factors including average turn around time of the remittances, average claim size and overall account size. The actual funding can take place within 3 to 5 days.
Different Lenders handle the Funding processes differently. Usually an Accounts Receivable Broker will select a company based upon location. Sometimes it helps if the Medical facility and the Accounts Receivable Funding source are in the same geographical area.
The sale of receivables creates no additional debt to the balance sheet and the monthly fees are 100% deductible.
Medical Accounts Receivable Funding sources are thoroughly familiar with the laws and limits of Medicare, Medicaid Insurance companies and third party payers.
Clients who may need Accounts Receivable Funding usually are too new to obtain bank financing or need accounts receivable financing for payroll, expansion and/or working capital.
Regardless of the financial needs, Healthcare A/R Financing is a unique industry with unique solutions. To receive more information or to be referred to a Lender that can help your particular healthcare business, http://www.taxeswilltravel.com/Application.htm complete the short 5 question online pre-application and get your pre-qualified reply in a matter of hours.
Cassandra is a Registered Tax Professional and Instructor for Basic Tax Classes in the San Francisco Bay Area. During the balance of the year she can be found at http://www.taxeswilltravel.com locating Accounts Receivable Funding for clients and potential clients.