Medical Factoring
Are you waiting up to 120 days, or more, to get your medical claims paid? Slow payments from medical insurance companies, Medicare, and Medicaid, can affect your cash flow and prevent you from running your healthcare business. Our factoring program can finance your medical insurance claims in as little as two days after account setup. This program provides you with funds to pay employees, suppliers, and rent. More importantly, it provides you with predictable cash flow so you can focus on running your business. We offer competitive rates, high advances, and quick decisions.
How does medical factoring work?
Our program finances your slow-paying claims in two installments. The first installment, the advance, is deposited to your account soon after you submit the claims for financing. The advance ranges from 75% to 85% of the expected claim payment. The second installment, the rebate, provides the remaining funds. The rebate is deposited to your account as soon as the claims are paid by the insurance company and the transaction is settled. The rebate ranges from 15% to 25% of the expected claim payment, less the fee.
Costs
The cost of factoring your medical receivables varies based on the size of the financing facility, the creditworthiness of your insurance providers, and other criteria. Generally, costs range from 2.5% to 5% per 30 days.
Benefits
Our solution provides a number of benefits, including:
- Better cash flow
- More predictable revenues
- Flexibility – the line can grow with your business
- Easy qualification requirements
- Quick setup times
Who can benefit from our Services
Our solution can help healthcare providers that bill private insurance or Medicare/Medicaid for medical services and need to get paid sooner. Some examples include:
- Medical offices
- Imaging centers
- Hospitals
- Nursing providers
- Surgery facilities
- Diagnostic centers
- Home healthcare agencies
Easy qualification
Qualifying for medical factoring is relatively easy. Your company must:
- Bill medical insurance providers, Medicare, or Medicaid
- Bill at least over 50,000,000 per month
- Follow good medical billing procedures
- Be free of liens
- Not have serious tax problems
Note, we can only finance certain workers’ compensation claims or personal injury related claims. Often, these require additional due diligence.
Is medical factoring right for your healthcare business?
Financing your medical receivables usually helps your business if the following apply to your company:
- You work with private insurance companies, Medicare, or Medicaid
- Your cash flow problems are due to slow-paying claims
- You need money to pay operational expenses
- You invoice at least Ugx100,000,000 per month
Need financing?
We are Uganda’s pioneer invoice factoring entity and offer competitive medical factoring plans.