New to Factoring?

For those who aren't familiar with factoring, it is basically a fast way to get cash to run your business.

Factoring is Not a Loan

When you send your customers an invoice, they usually have 30 days to pay you back. Factoring companies will give you the bulk of the cash up front, sometimes within 24 hours, and collect the payments from your customers themselves. Once the invoices are paid in full, you’ll get the balance left over, minus a small fee.


Factoring Doesn't Require Debt

Sounds simple enough – fast cash for your business – no loans, no debt.

So how do you go about choosing the best factoring company?

Not all of them are created equal. Not all of them will give you the same level of service you need to help grow your business.

Everyone claims they have the simplest rate structure in the industry, no long-term contracts, same day funding, no up-front fees, no monthly minimums or maximums, etc., etc., etc.

We also offer these same benefits, but we GO THE EXTRA MILE FOR YOU that other factoring companies don’t.

Here’s Why We Are The Factoring Company You Need For Your Business

No other factoring company matches our level of superior service and offerings.


As you can see, we simply have more to offer you.

Other factoring companies don’t even compare.
Miami

And Not All Factoring Companies Can Say This:

More than half of our new business comes through client referrals.

Some of the benefits you receive with factoring are:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Information for the city of Miami

Miami, the second largest city in Florida and seat of Miami Dade County, is located in the southeast part of the state, on Biscayne Bay.The area was once the home of the Tequesta Indians until they were nearly wiped out by European diseases and warfare brought on by two centuries of Spanish control of Florida. Miami was founded in 1870 near the site of Ft. Dallas, built in 1835 during the Seminole Indian wars. The city's name is probably derived from Mayaimi, an Indian word for big water. Miami is the only U.S. city to have been planned by a woman. Julia Tuttle, a Clevelander, arrived there in 1891 and bought several hundred acres on the bank of the Miami River. She convinced New York financier Henry M. Flagler of the area's vast potential and persuaded him to extend his Florida East Coast Railroad to Miami in 1896, the year the city was incorporated. Flagler dredged Miami Harbor, built the renowned Royal Palm Hotel, and promoted the area as a winter playground. Tourists flocked there, and by 1910 the city was a thriving recreational area.

 

Miami survived the collapse of a land speculation boom in the 1920s and severe hurricanes in 1926 and 1935 and continued to grow. It experienced a monumental population boost during the 1960s, when about 260,000 Cuban refugees arrived on its shore. They made a great impact on Miami, which is now a bilingual metropolis.Miami is an international banking and finance center and has the greatest concentration of international and Edge Act banks (banks making only foreign loans and deposits) in North America; these constitute a major employment base. Greater Miami has a highly diversified economy with numerous multinational and Fortune 500 companies. It is a national leader in biomedical technology, and the health care sector is a major industry. Greater Miami is also part of an area known as the Computer Coast of Florida, and its growing technologies include computers, electrical engineering, and plastics manufacturing.Miami is one of the world's leading year round resort centers. The city is a major transportation hub, and the port of Miami is the world's largest cruise port and a major seaport for cargo. The famous island resort of Miami Beach, incorporated in 1915, is connected to Miami by four causeways.Miami is a major center of commerce, finance, and boasts a strong international business community. According to the ranking of world cities undertaken by the Globalization and World Cities Study Group & Network (GaWC) in 2010 and based on the level of presence of global corporate service organizations, Miami is considered a "Alpha minus world city".

 

Miami has a Gross Metropolitan Product of $257 billion and is ranked 20th worldwide in P, and 11th in the United States.Several large companies are headquartered in or around Miami, Miami is a major television production center, and the most important city in the U.S. for Spanish language media. Miami is also a major music recording center, along with many other smaller record labels. The city also attracts many artists for music video and film shootings.Since 2001, Miami has been undergoing a large building boom with more than 50 skyscrapers rising over 400 feet (122 m) built or currently under construction in the city. Miami's skyline is ranked third most impressive in the U.S., behind New York City and Chicago, and 19th in the world according to the Almanac of Architecture and Design.

 

The city currently has the eight tallest (as well as thirteen of the fourteen tallest) skyscrapers in the state of Florida, with the tallest being the 789 foot (240 m) Four Seasons Hotel & Tower.During the mid 2000s, the city witnessed its largest real estate boom since the Florida land boom of the 1920s. During this period, the city had well over a hundred approved high rise construction projects in which 50 were actually built. In 2007, however, the housing market crashed causing lots of foreclosures on houses. This rapid high rise construction, has led to fast population growth in the city's inner neighborhoods, primarily in Downtown, Brickell and Edgewater, with these neighborhoods becoming the fastest growing areas in the city. The Miami area ranks 8th in the nation in foreclosures. In 2011, Magazine named Miami the second most miserable city in the United States due to its high foreclosure rate and past decade of corruption among public officials. In 2012, Magazine named Miami the most miserable city in the United States because of a crippling housing crisis that has cost multitudes of residents their homes and jobs.

 

The metro area has one of the highest violent crime rates in the country and workers face lengthy daily commutes.Miami International Airport and PortMiami are among the nation's busiest ports of entry, especially for cargo from South America and the Caribbean. The Port of Miami is the world's busiest cruise port, and MIA is the busiest airport in Florida, and the largest gateway between the United States and Latin America. Additionally, the city has the largest concentration of international banks in the country, primarily along Brickell Avenue in Brickell, Miami's financial district. Due to its strength in international business, finance and trade, many international banks have offices in Downtown such as , which has its U.S. headquarters in Miami. Miami was also the host city of the 2003 Free Trade Area of the Americas negotiations, and is one of the leading candidates to become the trading bloc's headquarters.As of 2011, PortMiami accounts for 176,000 jobs and has an annual economic impact in Miami of $18 billion. It is the 11th largest cargo container port in the United States. In 2010, a record 4.33 million passengers traveled through PortMiami. One in seven of all the world's cruise passengers start from Miami.

 

The Civic Center has the country's second largest concentration of medical and research facilities. It is the center of Miami's growing biotechnology sectors.Tourism is also an important industry in Miami. Along with finance and business, the beaches, conventions, festivals and events draw over 38 million visitors annually into the city, from across the country and around the world, spending $17.1 billion. The Art Deco District in South Beach, is reputed as one of the most glamorous in the world for its nightclubs, beaches, historical buildings, and shopping. Annual events such as the Miami is the home to the National Hurricane Center and the headquarters of the United States Southern Command, responsible for military operations in Central and South America. In addition to these roles, Miami is also an industrial center, especially for stone quarrying and warehousing.

 

These industries are centered largely on the western fringes of the city near Doral and Hialeah.According to the U.S. Census Bureau, in 2004, Miami had the third highest incidence of family incomes below the federal poverty line in the United States, making it the third poorest city in the USA, behind only Detroit, Michigan (ranked #1) and El Paso, Texas (ranked #2). Miami is also one of the very few cities where its local government went bankrupt, in 2001. However, since that time, Miami has experienced a revival: in 2008, Miami was ranked as "America's Cleanest City" according to for its year round good air quality, vast green spaces, clean drinking water, clean streets and city wide recycling programs. In a 2009 UBS study of 73 world cities, Miami was ranked as the richest city in the United States (of four U.S. cities included in the survey) and the world's fifth richest city, in terms of purchasing power

 

 

Information for the state of Florida

In the twentieth century, tourism, industry, construction, international banking, biomedical and life sciences, healthcare research, simulation training, aerospace and defense, and commercial space travel have contributed to the state's economic development. The Gross Domestic Product (GDP) of Florida in 2010 was $748 billion. Its GDP is the fourth largest economy in the United States. In 2010, it became the fourth largest exporter of trade goods.The major contributors to the state's gross output in 2007 were general services, financial services, trade, transportation and public utilities, manufacturing and construction respectively.

 

In 2010 and 2011, the state budget was $70.5 billion, having reached a high of $73.8 billion in 2006and 2007. Chief Executive Magazine name Florida the third "Best State for Business" in 2011. Agriculture is the second largest industry in the state. Citrus fruit, especially oranges, are a major part of the economy, and Florida produces the majority of citrus fruit grown in the United States. In 2006, 67% of all citrus, 74% of oranges, 58% of tangerines, and 54% of grapefruit were grown in Florida. About 95% of commercial orange production in the state is destined for processing (mostly as orange juice, the official state beverage). Citrus canker continues to be an issue of concern. From 1997 to 2013, the growing of citrus trees has declined 25%, from 600,000 acres (240,000 ha) to 450,000 acres (180,000 ha). Tourism makes up the largest sector of the state economy. Warm weather and hundreds of miles of beaches attract about 60 million visitors to the state every year. Florida was the top destination state in 2011. 42% of poll respondents living in the Northeast United States said they planned on visiting Florida over spring break.

 

Amusement parks, especially in the Orlando area, make up a significant portion of tourism. The Walt Disney World Resort is the largest vacation resort in the world, consisting of four theme parks and more than 20 hotels in Lake Buena Vista, Florida; it, and Universal Orlando Resort, Busch Gardens, SeaWorld, and other major parks drive state tourism. Many beach towns are also popular tourist destinations, particularly in the winter months. 23.2 million tourists visited Florida beaches in 2000, spending $21.9 billion

 

You are about to be relieved of the stress and time consuming process of collecting on your accounts receivable.  

Factoring is available for companies of all sizes, ranging from a one person business to Fortune 500 companies. Every business can use factoring as an effective way of increasing their cash flow -Florida Factoring Companies

 

 

BECOME A WELL PAID BUSINESS OWNER  

Florida Factoring Companies Articles

"How a Factoring Company Saved This Owner of a Trucking Company Business"

 

Transportation industry plays a vital role in the economic scene. As people's lives become more and more sophisticated as time goes by, making the most out of the limited resources is the concern of all. Say for example the proper use of land to get optimum profit and convenience or what is known as the zoning. It is defined as the process of planning for land use to allocate certain kinds of structures in certain areas. This method separates the manufacturing sites from the sources of its raw materials, the employees and employers to their respective offices. This made the transportation industry play a vital role in the economic scene. It is a primary necessity for businesses of any size and of any type. It does not just transport raw materials to the manufacturers but also bring finished products into our every door.

 

Investing in a business which plays a vital role in the current economic scene is a thing that every investor should not think twice about. But business does not work that easy. The big question is, how you are going to survive the most challenging phase of establishing a business - the start. Starting a business requires a capital. If you now have enough money for capital, you can now start your business and since you are investing in a very promising type of business, finding customers is not a problem. The problem is, what if you found bad ones. Even if your customers are also managing a business and expecting cashflow, which does not guarantee that they would pay you up to date because some businesses are just ill-managed. For the business to survive, the most important thing that you would be doing is funding your operational cost - make payrolls, fuel, maintenance - it should rely on cashflow, but since things like mentioned above is very common, some business owners would resort for a loan. But that does not solve the problem of getting your receivables paid on time. As a business owner, you cannot afford the time it takes to collect the receivables, while trying to make your business grow.

 

Mr. Paul, an owner of a small trucking company experienced the same kinds of problems and shared how he managed to survive. "I just released my head from the stress of how am I going to get my receivables, and focused on making the business grow"¦"

 

Mr. Paul just got his retirement fee from a big trucking company for almost forty years and was thinking on how to double his money in the shortest time possible. Seeing a small trucking company as a business of great potential and is a business that he knows. When he was still driving a truck, he was fascinated by how much money the company is making. He has also never experienced a delay in his salary. When he decided to invest his retirement fee in establishing a small trucking company, everything was just according to what he expected. He started with a single truck from his home. He started with just a few clients, the ones he knew already and never missed one deadline and kept freight damage as minimal as possible. Because of his outstanding services he started to get referrals and had more work than he can handle. From then, he started to expand, bought more trucks, hired more personnel. Using the knowledge he acquired from the company that he had served for a very long time, and dedication to his work, his little business grew in a rate that he had never imagined. The business is now requiring a more strategic plan and when Mr. Paul thought that everything was going very well, he encountered problems that he failed to foresee.

 

He had customers that made him wait for weeks or even months before paying. Since his little business is rapidly growing, his operational cost is also growing . This is a problem that he never knew and never observed in his entire career as a driver of a trucking company since he was never in an administration role. He was at the verge of breaking down, his business is losing money, growing too fast, not big enough has to rely cashflow to keep up to his fast growing business. He had to make his payroll, pay his suppliers, maintenance and fill his orders. Mr. Paul thought of going to bank and apply for a loan but was denied. "Maybe because I had a bad personal credit...haha"

 

Mr. Paul thought of declaring bankruptcy because of the stress that he never imagined he will be handling. He had to think of how to manage his business and at the same time, how will he keep the business alive by thinking of a solution on how is he going to deal with his receivables.

 

"You know that time, I, I, I just don't know what to do... I felt that as the business kept growing and growing, I become more and more incompetent. Then suddenly, a hero came along... Just at the nick of time. "

 

Then a close friend of his introduced him to a factoring company and everything turned out just fine. So what is this factoring company then? What does it do? How did it save Mr. Paul's business?

 

Well, this is how it works, Mr. Paul sells his invoices or receivables to a factoring company at a discount and not in an amount where he can no longer make a profit. The factoring company will then be the one collecting the invoices of Mr. Paul's business from his customers. Say for example, Paul still has 100 dollars to collect from one of his customers. He then sells it to the factoring company at a lesser price, say 90 dollars. The factoring company will now be the one who is going to get the 100 dollars collectible from Paul's customer.

 

The factoring company immediately gave Mr. Paul the cashflow he needed. He now has instant customer credit checks. He can rest well and likes doing business with companies that pay their bills on time. Save him from the stress of thinking how to deal with his collectibles, thus saving time and money. He can now focus on growing his business and keeping his customers happy. Increase his sales and cashflow.

 

The Factoring Company not just saved Mr. Paul's start-up business but made it a big company now. It has helped Mr. Paul's business, why don't you let it help yours?

 

 

 

You are about to be relieved of the stress and time consuming process of collecting on your accounts receivable.

 

 

Florida Factoring Companies Articles

 

 

 

 

 

Florida Factoring Companies Articles

Why Do Companies Choose Factoring?

 

We know that factoring is the ideal way for a business to access instant cash on their company's receivables, but there are other important benefits as well. Factoring can be a very handy financial instrument for many businesses.

 

Listed below Are Six Key Benefits of Factoring

 

No. 1: Back Office Solutions

 

Anyone running a business knows just how time consuming and expensiveit can be collecting payments from customers. When you employ a factoring company they'll take over that role for you using their own collection specialists: it's their job to follow up with customers until such time as your account has been paid in full. In addition, some factoring companies use online accounts, which means that you'll have the ability to track your customers' payments in real time.

 

Handing this time consuming part of your business over to the factoring company frees up your time to do what you do best - running your business, looking for new business opportunities, and providing your customers with excellent customer service.

 

No. 2: Better Quality Customers

 

Some factoring companies have their own rating systems for companies involved in your industry, in addition to having access to credit data on companies that could well become your new customers, and days pay information. Others create their own rating systems for companies working in your industry, which allows you to make calculated, informed decisions about both existing and new customers.

 

No. 3: Instant Access to Cash

 

When a company provides goods or services on credit it usually has to wait somewhere between 30 and 90 days for customers to pay on their invoice, and this very often leads to cash flow problems for the business. And that's the beauty of factoring! When you use a factoring company you'll typically receive an advance on an invoice within 24 hours. This immediate injection of cash allows businesses to purchase additional equipment, employ new staff, and cover other business expenses.

 

No. 4: Growing Your Business

 

Because factoring provides instant access to cash, it offers you the flexibility to grow your business at a faster pace. In addition, factoring is very simple to set up. A factoring account can be created within a matter of days, whereas a traditional bank loan can take weeks. And, there's no limit to the amount of funding a factoring company can provide, unlike bank loans. Of course, this is assuming the factoring company you choose to work with has a strong capital structure. Over a period of time, the volume of factoring can increase within months - from thousands to millions of dollars.

 

No. 5: Funding for Start Ups

 

Start Ups quite often require financing to get their business up and running; but because they have no cash flow statements or balance sheets, and no business history, they're highly unlikely to qualify for cash flow or asset based lending.

 

Factoring is not concerned about these requirements because it's main interest is in the credit history of your customers. Before a factoring company offers you financial assistance it will examine your customers' credit scores, their payment patterns, and general financial health. Typically, the factoring company will not be interested in how long your company has been operating.

 

No. 6: Factoring Is Not a Debt

 

Factoring does not become a debt to your business because it's not a loan. Your business receives financial support from the factoring company as and when you accumulate invoices, and the matter is settled once your customers have paid in full. It's true that if you're utilizing recourse factoring, you, as the factoring client, assume the risk if your customers default on payment; however, factoring companies usually allow businesses to work off that amount by retaining a portion of reserve payments or future cash payments.

 

 

 

 

 

Florida Factoring Companies Articles

Medical and Healthcare Invoice Factoring

 

Don't Wait to Be Reimbursed - You Can Receive Payment Today!

 

Anyone in the healthcare profession is painfully aware that third-party payers like Medicaid, Medicare, HMOs, Workers Compensation, and other private insurers, can take what appears to be an unnecessary long time to settle your accounts. But there's good news, because with 'factoring' there'll be no more long waiting periods to receive payment on your medical receivables. For anyone in the healthcare profession who provides any type of medical services, factoring is here to assist with cash-flow.

 

Is There a Difference between Medical Factoring and Healthcare Factoring?

 

There actually is a difference between these two types of factoring, even though we hear many people using these two phrases interchangeably. Basically, when there is no third-party payer involved, then healthcare factoring applies, and if a third-party payer is involved, then medical invoice factoring companies are used.

 

Healthcare and medical receivables factoring is available for the following services -

 

- Hospitals

 

- Group and Sole Practitioners

 

- Laboratories

 

- Physical Therapy and Rehabilitation Facilities

 

- Chiropractors

 

- Nursing Homes

 

- Durable Medical Equipment (DME)

 

- Medical Staffing Companies

 

- Medical Billing Services

 

- Medical Supply Companies

 

- Medical Coding Services

 

- Ambulance Providers

 

- Medical Transportation

 

- Medical Transcription Services

 

- Medical and Non-Medical Home Healthcare Providers

 

- Imaging Facilities Providing CT Scans, X-Rays, MRIs, and so on; and

 

- Many More!

 

Factoring for Healthcare Receivables

 

We typically associate healthcare receivables with customers who are not reliant on third-party payers. This includes sectors involved with medical staffing, medical supplies, medical transcription, medical coding and billing, and so on. Basically, it means that vendors who use healthcare factoring receive the benefits of an unlimited line-of-credit, all based on the services they provide.

 

 

You can see below that factoring healthcare receivables is a very simple process -

 

 

- As the healthcare vendor, you still invoice your customer for work you've completed. Some of the more common customers will include medical offices, nursing homes, hospitals, and so on.

 

- The next step is for the vendor to forward a copy of the invoice to the healthcare factoring company. Your factor will handle the collection of payment on your behalf.

 

- The factoring company will deposit an amount of money in the range of up to 85% of the gross value of the invoice into the vendors bank account within 24 hours, or less.

 

- The remaining (approximately) 15% will be held by the factor until such time as the account has been paid in full by the customer.

 

- Once the invoice has been paid in full by the customer, the factor will release the remaining 15%, less the agreed-upon fees, back to you, the vendor.

 

Factoring for Medical Receivables

 

Regardless of whether your business bills Medicaid, Medicare, Blue Cross/Blue Shield, a third-party insurance company, or HMOs, we have the perfect factoring solution for you.

 

The benefit to you of factoring your medical claims is that you'll receive upfront capital. It's the factor who will seek payment of your invoice.You can see below that factoring medical claims is a very simple process -

 

 

- As the provider, you'll continue submitting your claim to the third-party payer.

 

- At the same time, you'll submit a copy of the paperwork to your factoring company.

 

- The factoring company will deposit an amount of money in the range of up to 85% of the net collectable value into the vendors bank account within 24 hours, or less.

 

- Once the third-party payer pays your claim in full, the factor will release the remaining 15% (approximately), less the small agreed-upon factoring fee.

 

 

 

 

Florida Factoring Companies Articles

Small Business Invoice Factoring: The Clever Choice!

 

Many small businesses are discovering invoice factoring and quickly realizing this was a very smart business choice! Why? Because small business invoice factoring converts receivables into immediate cash!

 

The Ideal Alternative to Traditional Bank Loans

 

Small businesses are discovering that invoice factoring is the perfect, and much easier, alternative to traditional funding sources, like bank loans and cash advances. Any small business who sells to the government or other companies can use invoice factoring to enjoy the many benefits of accessing immediate cash flow. Whether you've applied for traditional funding and been refused or applied and are still waiting to hear if you've been accepted, keep in mind that small business invoice factoring is a very viable option for you.

 

How Does Invoice Factoring Work for Small Businesses

 

One of the major benefits of small business invoice factoring is that it's the credit worthiness of your customers that determines the funding decision. This means that if you're a business who sells to the government or other businesses with good credit, you're the perfect candidate for small business invoice factoring.

 

Applying for invoice factoring is a very simple process, and you certainly won't be forced to wait weeks, even months, for a decision as you would with traditional funding sources.

 

Why Small Businesses Are Choosing Invoice Factoring

 

Many businesses are only just learning about invoice factoring, even though factoring has been around for a long time. Any business owner who has applied for a bank loan knows only too well that, to start with, the application process can take months, and secondly, there's still no guarantee you'll be approved for finance.

 

According to the Small Business Administration, in the first quarter of the year 2015 small business loan approval rates at banks were 22%, and at credit unions it was 43%. The limit on business credit cards is often capped at less than $100,000, which is often not sufficient to cover unexpected expenses or large projects.

 

Invoice Factoring: The Smart Alternative to Traditional Lending

 

Today, small business invoice factoring has become the smart alternative for many business owners because factoring provides an immediate cash advance, with no restrictions placed on the money received. It's also important to note that factoring is not a debt, which means there are no limitations on how you choose to use the funds received.

 

Yes, small businesses can access quick money with a merchant cash advance, but there's always a high cost involved. You'll soon discover that the cash advanced will cost your business more than 70% effective annual interest. Alternatively, cash advance lenders demand daily repayments with full payment due in just a few months. The demand for daily payback can destroy a small business, but sometimes business owners are left with no choice.

 

So, let's take a quick look at just some of the benefits of small business invoice factoring, and once you read through this list we're sure you'll think of more benefits to your own business.

 

With this immediate cash advance you'll be able to -

 

- Employee new staff members

 

- Easily meet payroll

 

- Accept larger orders from bigger customers

 

- Invest in marketing and sales

 

- Expand manufacturing and production

 

- Your business will be able to weather cash flow cycles and seasonal sales periods

 

- Pay down any existing debt

 

- Take advantage of early pay discounts from your suppliers (these discounts often cover your factoring fees)

 

- Extend your customers' payment terms

 

- Provide a smooth cash flow to support daily business operations

 

- Overheads are lowered due to reduced administration expenses

 

- Your business will be self-financed during rapid growth periods, without having to give up equity.

 

As you can see, the benefits of small business invoice factoring are many and varied, so why not contact us today and let's talk business!

 

 

 

 

 

Florida Factoring Companies Articles

The Difference between Accounts Receivable Financing and Factoring

 

Today, it's not as easy for businesses to access finance as it was in past years, and more companies are being forced to look for alternative, non banking financing options in order to access the capital they require to help their business grow.

 

Two of the more popular tools available to cash strapped business owners are Accounts Receivable Financing (A/R Financing) and factoring. Some business owners believe these two are the same, but there are, in fact, some small yet significant differences.

 

What Is Factoring?

 

Factoring is when a commercial finance company, also known as a factor or factoring company, purchases a business's outstanding accounts receivable. At that time, the factor will typically advance the business somewhere between 70% and 90% of the invoice's value. Then, once the invoice is collected from the customer, the remaining balance - minus a factoring fee - is released to the business. The factoring fee could range from between 1.5% and 5.5%. It's calculated on the total face value of the invoice and depends on how many days the funds are in use and other aspects, like the collection risk.

 

When a business has a factoring contract they can usually choose which invoices they want to sell to the factor: it's not generally an all or nothing process. Once the factor has purchased an invoice they become responsible for managing the receivable until the account has been paid. Essentially, the factor becomes the business's accounts receivable department and credit manager, analyzing credit reports, performing credit checks, mailing invoices, and documenting payments.

 

What Is Accounts Receivable Financing?

 

Accounts Receivable Financing is more similar to a traditional bank loan, however there are some key differences. Bank loans are secured with collateral; which might be real estate, the business owner's personal assets, or plant and equipment; whereas Accounts Receivable Financing is backed by the business's assets related to the Accounts Receivable. When a business has an Accounts Receivable financing agreement, a borrowing base is established at each draw against which the business is able to borrow money: this would typically be between 70% and 90% of the qualified receivables.

 

Between 1% and 2% is typically charged as a collateral management fee against the outstanding amount, and interest is only calculated as and when the money is advanced. An invoice must be less than 90 days old in order to count towards the borrowing base, and the finance company must deem the business credit worthy. There may also be other conditions to fulfil.

 

So, you can see that there are many similarities between Accounts Receivable financing and factoring; however, one is the sale of an asset (receivables or invoices) to a third party, while the other is actually a loan. In many ways, though, they do act similarly. Below we've listed the main features of each so you can determine which would be the best fit for your company.

 

Accounts Receivable Financing

 

' Generally, Accounts Receivable Financing is not as expensive as factoring;
' It can be easier to move from this type of financing to a traditional bank line of credit once a business becomes bankable again;
' Typically, a minimum of $75,000 per month is required in sales to qualify, so this type of financing may not be available to small companies;
' Due to the fact that the business will be required to submit all of its Accounts Receivable to the finance company, this type of financing can be less flexible than factoring.

 

Factoring

 

' It's quite easy to qualify for factoring, and factoring is the ideal solution for start ups and financially challenged companies;
' Because businesses can decide which invoices they want to sell to the factor, factoring offers more flexibility than Accounts Receivable Financing;
' The company is able to track total costs on an invoice by invoice basis because factoring has a simple and straightforward fee structure.

 

In Conclusion

 

Today we see both Accounts Receivable Financing and factoring as traditional sources of financing; effective when traditional bank financing is not an option. Factoring can carry a business through a period when an immediate cash input is required.

 

Somewhere between 12 and 24 months most companies are generally able to repair their financial situation and once again become bankable. However, some companies in certain industries continue factoring their invoices indefinitely.An example of this is the trucking industry, which relies heavily on factoring for cash flow injections.

 

 

 

 

 

Florida Factoring Companies Articles

About Invoice Factoring

 

Perhaps you've heard about Invoice Factoring but you're not sure how it works or how it might help your business. The purpose of this post is to provide a clear explanation of what Invoice Factoring is and how it works.Basically, Invoice Factoring is a viable alternative to traditional financing methods, providing your company with fast access to working capital. There's no large debt to repay and there are no strings attached. It probably sounds too good to be true, but we can assure you it's not! Invoice Factoring has become a lifesaver to many businesses, so let's go into this a little further to see how Invoice Factoring might help your business go from just so-so to really great!

 

How Invoice Factoring Works

 

A very brief definition of invoice factoring is that it converts your open invoices into immediate cash, which of course sounds perfect if you're experiencing a cash flow problem. Factoring saves you from having to wait the 60 or 90 days (sometimes even more) for payment by your customers. With invoice factoring you have the flexibility to factor whichever invoices you want and however many invoices you need, to ensure you have enough cash on hand to grow your business.

 

The following is a short description of how the process works -

 

Once you and your chosen factoring company have reached an agreement and set up your account, you're now free to begin submitting copies of your unpaid invoices to the factoring company. These invoices must be for products that have been delivered or for work that's been completed. With invoice factoring you simply continue invoicing your customers as usual, then fax or email a copy of the invoice directly to your factoring company.

 

Now here's the good part! You'll receive a cash advance within 24 hours! Once the factor has verified your invoices, a deposit of as much as 95% of the value of the invoices will be deposited directly into your bank account.

 

You continue working as per usual, and the factoring company works to collect on your accounts. It's now your factor's responsibility to engage in the active collection of these accounts, thus allowing you more time to focus on the big stuff, like providing your customers with excellent service and continuing to grow your business.

 

As a customer of the factoring company you can repeat this process with as many different clients as you want and as many times as you want. You may choose to factor all of your clients, or just the clients that are known for being slow-paying clients. The choice is yours!

 

The Benefits of Invoice Factoring

 

Once you're working with an invoice factoring company you'll have control over your cash flow, and more importantly, you'll have a working relationship with your factor that will help your business grow in lots more ways. Let's take a closer look at some of the ways a factoring company can help you grow your business -Credit Checks and Background Verification

 

It's important to all businesses that they work with honest, reliable customers; customers who have a solid payment history. Sales must be turned into revenue as quickly as possible. However, we know that credit checks and background verifications can be very expensive and these costs very quickly eat away at your working capital. Now, it will be your invoice factoring company who provides these checks for you, at no additional charge. This means that any issues will be addressed before they affect your business, thus ensuring that you're working with top-quality customers.

 

Credit Repair and Credit Building

 

Even if your business credit is less than perfect, you can still apply for a competitive invoice factoring program. The benefit of this to the business owner is that, not only will factoring your open invoices cover your daily operating costs, it will also help pay down any current debt in order to rebuild your credit rating. The good news is that start-ups also qualify for invoice factoring so, if you're just getting your business off the ground, factoring is the ideal financing alternative to help you hit the ground running.

 

Other Money Saving Opportunities

 

Invoice factoring can certainly save your company money, and it's not only with competitive rates. By negotiating with your suppliers for early-pay discounts or other payment incentives, you'll soon discover new ways of putting your rejuvenated cash flow to good use. And don't forget that, depending on how much you factor, you could well qualify for a volume discount, and this will further reduce your rates.

 

Steady and Consistent Cash Flow

 

When you begin factoring your invoices you'll be able to regain complete control of your working capital. Whether you're simply tired of waiting up to 90 days for money that's owed to you, or perhaps your business is subject to seasonal fluctuations, either way, invoice factoring is the ideal method for regulating your cash flow.

 

Now You Can Start Dreaming Big!

 

You may have become used to business being steady, but with invoice factoring you'll have the opportunity for business growth in many new ways .

 

o You'll be able to attract larger clients, with better contracts;
o Increased business marketing efforts;
o New technology investments, or upgrades;
o The ability to employ more staff;
o Training and further education programs for existing staff;
o Relocation of your business, or site expansion.

 

Finally, No More Debt!

 

One of the most attractive things about invoice factoring is that it's not like a traditional loan: it won't add additional debt to your balance sheet. In fact, it's actually the opposite; because Invoice Factoring provides you with the extra cash you need to be able to settle old debts. With factoring, it's already your money so there's no money to pay back and no interest to pay. All factoring does is help you get your money into your bank account - quicker!

 

Why Haven't I Heard of Invoice Factoring Before?

 

This is a question a lot of business owners ask. Invoice factoring certainly isn't new, but maybe it's just been overshadowed in the past by bank loans and other types of business investments. The fact is that factoring goes right back to the days of the Roman Empire, where factors assisted businessmen (usually farmers) in growing their business. Then, later, it was used in the textile and clothing industry to help pay for raw materials, to finance transactions, and accept larger purchase orders. Today, invoice factoring is used by many different types of industries, such as:

 

' Construction
' Transportation
' Medical
' Staffing, HR
' Consulting
' Engineering
' Marketing/Media

 

Becoming Familiar with Factoring Terminology

 

Don't be discouraged because you don't understand factoring terminology. See below for an explanation of general factoring terms :

 

' Account Debtor:
An account debt or is your customer.

 

' Accounts Receivable Ageing Report:
This is the name given to a report which shows the financial figure of unpaid receivables, in addition to how long they've remained unpaid.

 

' Accounts Receivable Factoring; also known as Invoice Factoring:
These two terms can be used interchangeably because they mean exactly the same thing.

 

' Discount Rate:
This refers to the percentage of the invoice charged by the factor as a fee for advancing funds.

 

' Due Diligence:
This refers to the background research carried out by the factor to determine potential customers.

 

' Factoring Advance Rate:
This rate is a percentage of the invoice that's advanced within 24 hours to the client - this figure is generally between 80 and 95% of the total amount of the invoice.

 

' Factoring Broker:
A factoring broker is a third party whose position is to connect business owners with appropriate factoring companies in order to meet the business's goals and needs.

 

' Lien:
The right to retain possession of property until a debt has been discharged.

 

' Non-Recourse Funding:
Most businesses have experienced customers who fail to pay their invoices within the agreed payment terms, or worse, the invoice is never paid at all! Non-Recourse Funding is when the factor assumes all responsibility for unpaid invoices. Because the factoring company is accepting the risk, Non-Recourse Funding is more expensive than Recourse Funding.

 

' Recourse Funding:
With Recourse Funding, your company must buy back the receivables if your client fails to pay within the agreed payment terms.

 

' Reserve:
This is the amount of the Accounts Receivable retained by the factor until such time as full payment has been made by the customer.

 

' Spot Factoring:
This refers to a one-off agreement that offers staffing companies the ability to factor just one single invoice.

 

Your Customers, and Factoring

 

It's important that we point out here that factoring is not a negative thing, and your factoring company is definitely not a collections agency. In fact, it's important to your factoring company that they maintain good relationships with both you and your customers, and it's their aim to provide the best customer service possible. It's in your factoring company's best interests that the factoring process works as smoothly as possible.

 

The following will give you a general idea of how factoring works :

 

' Once you've made the decision to start invoice factoring, your dedicated account manager will start by verifying that your debtors are indeed customers, in addition to advising them of your new remittance address. It's important to remember that it makes no difference to your clients where they send their payment: they know their invoice must be paid, so this is simply a change of address for payments.

 

' Your factoring account manager will be very experienced and will assure your clients that they'll be well taken care of, and that the factoring company will be managing your invoices in future by taking over your accounts receivable. And that's all there is to it! Nothing will change between your company and your customers: you'll still invoice them as usual, and they'll simply forward their payment to a new Post Office box. Your account manager will be available to help if any problems should arise.

 

What You Should Look For in a Factoring Company

 

Once you start doing your own research you'll discover that there are many factoring companies out there, but they're definitely not all equal. The following are points to consider when comparing factoring companies:

 

' Fees
As we've explained, factoring is a little more expensive than a traditional bank loan, but some small businesses don't qualify for a bank loan, so being able to achieve some working capital is better than none at all. Do your research, and make sure you understand the overall cost of factoring, in addition to the extra smaller fees that may be charged by your factor. These extra fees may include account set-up fees, application fees, credit reports, costs to research any liens, charges for last-minute funding, or for money transfers. Not all factors charge these extra fees, and not all factors have hidden fees, which means that it's very important that you choose a factor you're comfortable with and one that you can trust.

 

' Flexibility
This is a very important aspect of factoring, and one we can't stress enough. Make sure you very carefully read the fine print of your factoring contract! If you start working with a factoring company and then realize that you're locked into terms that don't suit your own particular circumstances, you're going to be extremely unhappy. These unsatisfactory terms might include how much you're able to factor each month, or being tied to a specific factoring company for the life of your business. If you sign up for a long-term contract, then change your mind, it's going to be a very expensive exercise trying to get out of the contract. Don't let this happen to you! Be very clear on how much you can factor each month, which clients are eligible for factoring, and how long you're signing up for.

 

' Communication
At one point or another we've all had to deal with a business with poor communication skills, and we probably all agree that it's extremely frustrating. So, imagine a business with poor communication skills that's also handling your money! Naturally, when it comes to your business and your money, you need someone that's going to immediately respond to your inquiries. All factoring companies are going to say their customer service is second-to-none, but be very cautious here. Pay close attention to when and how your potential factoring company responds to your calls and emails, because this is how they'll be responding to your customers. If you're not 100% happy then move on to another factoring company, because there are certainly plenty to choose from!

 

' Industry Expertise
Remember that there are many factoring companies out there servicing many industries, so you should be looking for one that services your own industry. Ideally, you'll choose a factoring company that specializes in your niche, which means that they'll already understand a lot about your business. The bonus of using a factoring company with industry expertise is that they may also offer programs specific to your industry, such as fuel cards and back-office support. It's these extras that may prove very beneficial when making your final decision on a factoring company.

 

 

 

 

 

Florida Factoring Companies Articles

Questions You Need to Ask Your Factoring Company

 

In today's marketplace we're seeing more and more factoring companies, and factoring fees, rates and agreement terms have become very competitive. This means that, as a potential factoring customer, this competitiveness should work to your advantage. However, there are some issues you must consider when choosing a factoring company to suit your specific requirements.

 

Before entering into any factoring agreement, here are some important questions you should ask -

 

What Are Your Terms?

 

As a factoring customer, you'll be looking for as much flexibility in your factoring agreement as possible. It may be that you choose a long term contract with your factoring company if it includes flexible rates or a price break. In today's competitive market, many factoring companies are agreeing to adjust their rates based on competitive offers from other factors or increased factoring volume.

 

The majority of factoring agreements are a one year contract, which appears to be industry standard, and this contract will renew automatically unless you provide the factoring company either 60 or 90 days notice.

 

What's Your Fee Structure?

 

The fee structure may vary depending on both the factoring company involved and your industry. Some factoring companies charge a flat fee, which is calculated as a percentage of the total value of the invoice. On the other hand, other factoring companies charge additional fees to cover costs associated with doing business, such as money transfers, software, and so on. Ensure that the factoring company you're considering working with is completely upfront and transparent with you about its terms and fees.

 

Are You Able to Offer Both Recourse and Non Recourse Factoring?

 

Recourse factoring:

 

Recourse factoring is less expensive than non recourse factoring. With recourse factoring, you (being the client) are ultimately responsible if the factoring company is unable to collect on your customers' invoices. However, you're not necessarily required to pay the debt out of pocket if you have a recourse agreement and the customer defaults on payment. It may be that the factoring company will withhold a portion of future cash payments or payments held in reserve, with the money being placed in an escrow account until such time as the debt has been paid.

 

Non recourse factoring:

 

When you have a non recourse factoring agreement, the credit risk for the collection of customers' invoices lies with the factoring company.Therefore, we believe it's to your advantage to use a factoring company that offers both recourse and non recourse factoring, simply because you may find that some of your customers are more suitable for recourse factoring than others. In addition, you need a factoring company with a strong credit team because they can work with you to ensure you're dealing with good customers: to a certain degree this will relieve some of the pressure of being responsible for bad debt.

 

How Long Has the Factoring Company Been in Business?

 

With the marketplace becoming increasingly competitive, today we're seeing the creation of more and more factoring companies. However, many of these companies are recent start ups, with limited industry experience. Make sure you research the factoring company's history prior to entering into any factoring agreement: also research its background into providing financial services in your specific industry.

 

Do You Have the Capital to Grow with Me?

 

The fact that there's no limit to the level of financing is the major advantage factoring has over traditional bank lending. As your company continues to grow, so too should the funding of invoices grow with you. Do your research and learn as much as possible about your potential factoring company's client base and their capital structure.

 

Does this factoring company have a limit to the number of debtors it takes on? What's a typical account size? What's the factoring volume of their largest client? You'll probably find that factoring companies who have been serving your industry for many years will have greater capacity to finance your company as it continues to grow.

 

Is There Anything Else You Can Do for Me?

 

Obviously, factoring is more expensive than a conventional bank loan, and this is partly due to the back office services that your factoring company is able to provide. Besides collections and financing, many factoring companies will evaluate companies in your industry and provide credit information. Therefore, when looking for a factoring company for your business, make sure the one you choose offers additional services and products that can assist you in making good business decisions.

 

How Do We Start Factoring?

 

Fortunately, factoring companies are not unduly concerned about your balance sheet before they decide to work with you, unlike banks. However, they do have a process to follow when selecting new clients, so be sure you understand what the factoring company is looking for when it's considering you as a client. Are they looking at your credit ratings and/or your customers' payment histories?

 

Are they looking at your personal credit score?

 

In many cases a company will start factoring because it's looking for a quick injection of cash, so you need to know how many days the factoring company will take to review and process your application.

 

 

 

 

 

Florida Factoring Companies Articles

Freight Bill Factoring: The Best Way to Achieve Your Business Goals

 

Freight bill factoring is not a secret, but many businesses are still unaware of the benefits available to them by factoring their business invoices.

 

If you're planning on starting your own trucking business, or perhaps you already own a trucking business, you may well have heard of freight bill factoring. Many trucking companies confirm that freight bill factoring has been entirely responsible for helping them achieve their overall business goals. So, let's discuss freight bill factoring and how can it help you grow your business.

 

How Freight Bill Factoring Assists Trucking Companies

 

It was recently reported that freight bill factoring has become the financial backbone of the trucking industry, and that's not a surprising statement because factoring provides financing capital that businesses would not otherwise be able to access. The freight bill factoring process is a very simple one: your Bill of Ladings is purchased by a factoring company at a discounted rate. The trucking company receives immediate funds and, because the money received is not a loan, the trucking company is free to use these funds as they see fit. No more cash flow problems!

 

Is Freight Bill Factoring a New Financing Concept?

 

No, it's not new. In fact, freight bill factoring has been around for a long, long time. Almost every civilization engaged in commerce has used some type of factoring. Businesses actively engaged in factoring during North America's colonial period when they made cash advances against accounts receivables to enable the business to carry on with their commercial operations. Of course, factoring has become quite advanced over the years and is now more focused on financial management, collections, and credit worthiness; however, the basic idea of purchasing accounts receivables remains the same today.

 

Today, factoring companies have a lot more to offer than just funding: they now have factoring specialists who assist their clients by evaluating their customer's credit worthiness, defining credit limits, and managing their accounts receivables collections in a professional manner.

 

Right across North America we're seeing all forms of factoring companies servicing business sectors and industries of all types. It's interesting to note that, today, many large financial corporations have their own in-house factoring divisions; however, factoring companies are typically independently-owned enterprises.

 

Commercial Banks Are No Longer Supportive of Small Business

 

Commercial banks today are operating under very strict regulations with constantly changing lending criteria, thus making it very difficult for business owners to apply for and be accepted for a bank loan. Their inflexibility has left small and medium-sized businesses out on a limb, searching for alternative financing sources. Fortunately, factoring provides these businesses with the financing solutions they're looking for.

 

Freight bill factoring offers a workable solution for these businesses when conventional financing methods are simply not available. And now that banks and other lending institutions have become less friendly to small business owners, factoring as a financing remedy is looking much more attractive.

 

Interesting statistics show that the volume of factoring around the globe has now exceeded the trillion-dollar mark, with factoring companies operating right around the world. In the last four years alone, there's been an increase in factoring transactions by 60%.

 

Factoring companies provide businesses with the working capital they need to operate and grow their businesses and, because factoring is not a loan, there really are no disadvantages to factoring.

 

 

 

 

 

 

Florida Factoring Companies Articles

 

 

 

Florida Factoring Companies Articles

Medical Invoice Factoring: A Viable Financing Option for Healthcare Professionals

 

Many healthcare professionals will attest to the fact that qualifying for a business loan or commercial line of credit is becoming harder and harder. Fortunately, there is a viable option, and it's known as Medical Factoring. Medical factoring is available for all types of healthcare businesses, including medical practices, and is the ideal financing option for businesses experiencing cash flow problems.

 

The Challenges Faced by the Healthcare Industry

 

Generally, the healthcare industry has excellent growth prospects and is quite resilient to economic turbulence, but it's also an industry facing more financial challenges than ever before. In years gone by, healthcare professionals, medical facilities, and medical suppliers found it reasonably easy to manage their cash flow, but today Medicaid, Medicare, and private insurance companies have laid down strict guidelines for reimbursement, including onerous documentation and billing requirements, so-much-so that businesses not only receive less money, but must wait longer to receive it.

 

This situation can, and does, create financial issues for many medical providers who, while dealing with increasing operating expenses, salaries, and benefits, must also accept less and wait longer to receive their money. In many cases, the health provider's long-term viability is placed in jeopardy, and because of cash flow problems the business is unable to pursue new opportunities for growth. A physician running a relatively small practice could well have $1 million tied up in receivables!

 

The Problem with Bank Loans

 

When any business confronts a cash flow crisis their first port of call is usually a bank or other commercial lender, and a Line of Credit or business loan can certainly help in the short term; however, neither will permanently solve the problem and are therefore not optimal financing solutions. Bank loans are more suited to large fixed capital purchases, but they're not designed to cover short-term recurring business expenses. On the other hand, a Line of Credit is somewhat better, but because they have credit limits and fixed terms they're not able to provide the assurance a business needs of an unlimited, renewable source of business capital. Once the credit limit has been reached or the term of credit line ends, the lender has the right to not renew or increase the credit limit. And, unfortunately, this is the situation that many healthcare professionals find themselves in today.

 

The Perfect Medical Financing Solution

 

So, what's the ideal solution for medical financing? The perfect solution would be one that's flexible enough to grow and expand with the healthcare business; one where the business owner is not required to re-apply to a bank or other lender for credit limit increases. The ideal solution would provide a reliable and steady source of working capital, capable of financing both the current and future operations of the business.

 

Medical Factoring

 

Fortunately, there is a solution for healthcare professionals, and it's known as Medical Factoring. Medical Factoring, or Medical Receivables Factoring is an area of receivables factoring that deals exclusively with accounts that are medical in nature. Due to the fact that many healthcare receivables are either reduced or denied by insurance providers, and because of the expertise required to manage the claims process, factoring companies who factor medical receivables face significant challenges, so-much-so that it's almost a necessity for these companies to specialize in medical factoring. In fact, there are many factoring companies out there that do nothing else!

 

What Types of Business Use Medical Factoring?

 

Factoring has been around for hundreds of years and many industries have discovered the benefits of invoice factoring. However, many medical service providers are completely unaware of the existence of factoring and therefore don't realize that it's one of the most flexible and powerful business financing tools available today. Almost any healthcare provider can benefit from Medical Factoring, including -

 

- Medical Centers and Hospitals;
- Physicians - General Practitioners and Specialists;
- Outpatient Facilities and Clinics;
- Medical Staffing Services;
- Medical Labs;
- Dialysis Facilities;
- Physical Therapy Groups and Clinics;
- Rehabilitation Centers;
- Home Healthcare Providers;
- Providers of Durable Medical Equipment.

 

The Benefits of Medical Factoring

 

The benefits of medical factoring are many, and are similar to those enjoyed by businesses in other industries. They include -

 

- Fast payment;
- Consistent cash flow;
- Outsourced accounting and invoice collection;
- An increase in percentage of billings collected;
- Working capital finance that's debt free;
- Building business credit.

 

Medical Practices

 

Receivables Factoring offers medical practices an excellent financing alternative to loans: the medical practice will have consistent and flexible financing tied directly to its insurance claims. This means that the amount of available financing increases as more claims are filed. Having a reliable cash flow in a growing medical practice ensures that there will always be sufficient liquid business capital to cover expenses.

 

Medical Supply Companies

 

In the same way, medical factoring offers medical supply companies quick and predictable business financing, directly tied to the volume of sales. The amount of financing grows as sales grow, automatically providing the working capital needed to both operate and grow the business.

 

Generally, medical factoring is particularly well suited for smaller medical offices. Because your chosen factoring company will be handling most of the administrative work involved in collections and claims processing, overhead expenses and office staffing can be kept at a minimum, thus allowing you to focus on what you do best - delivering the best medical care possible!

 

If you have a small practice with good growth prospects, but you also have slow cash flow, then you'll soon discover that medical factoring could well be the ideal financing tool to help you finance the growth of your business. It's true that most factoring companies have minimums, but there are factoring companies out there who will finance an office billing as little as $50,000 per month.

 

How Medical Receivables Factoring Works

 

Medical Factoring is quite simple: Basically, medical factoring accelerates payments for any healthcare business that depends on third-party payors. This means that within days of the initial billing (instead of weeks) most of the business's billed amount will be deposited directly into that business's bank account, thus drastically shortening the collection cycle and eliminating the constant headache of cash flow problems.

 

The added bonus of medical factoring is that it's not a loan, and as such, has no impact whatsoever on the business's balance sheet. There are no arbitrary limits, no credit limits, and no stringent financial requirements. The healthcare professional can factor as much of the billing as is generated by the business, thus making factoring the ideal financing tool for business growth.

 

How to Create a Factoring Program

 

Setting up a factoring program will typically take a couple of weeks at most. Obviously, the factoring company will need reassurance that the third-party payors are reliable and that their clients' practices are stable. However, once the factoring program has been established, medical financing is predictable and continuous. Claims will typically be funded within 48 hours after being submitted to the medical factoring company.

 

The Factoring Process

 

Medical Factoring is a very simple process -

 

- Periodically, your practice submits billings to Medicare, Medicaid, and insurance companies (note that certain medical factoring companies will do this for you), with copies forwarded to your factoring company;
- Within 48 hoursthe advance, or up to 85% of net collectables, will be deposited into your business bank account. The balance will be held in reserve to settle billing discrepancies;
- The factoring fee will be collected once a factoring company has been paid, with the balance of the billings being remitted to you. The fee charged by the medical factoring company will vary according to the size and types of claims generated by the practice.

 

The Future of Medical Factoring

 

It's true that medical factoring covers a relatively small portion of factoring activity overall; however, more healthcare professionals are learning about factoring and, today, we're seeing an increase in interest in medical factoring throughout the healthcare industry. As the benefits of this type of medical financing become more widely known, it's anticipated that medical receivables factoring will become more widely used.

 

Medical factoring provides a short-term solution for shortfalls in working capital financing, plus a long-term solution for medical financing and patient accounting support, and it's for these reasons that medical factoring as a financing tool deserves careful consideration by healthcare businesses.

 

 

 

You Can Find More Information at  https://sellingaccountsreceivable.com
and at http://truckingfactors.org/

Call Us Today at: 1-866-593-2195

 

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