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Pharmacy Factoring

What is Pharmacy Factoring?

Essentially factoring, of any form, is when a finance company purchases an invoice, insurance claim, or other type of account receivable for cash.

Finance companies, or factors, make their decision to purchase an account receivable based upon the credit worthiness of your customer – not you, which is very different from banks.

Factoring will put cash in your hands now – not in 30, 60, 90 days or whenever the insurance company decides to pay you.

Want to see if pharmacy financing, also known as medical receivables factoring is right for you?

Just click below and fill out the form on the next page – don’t worry if you don’t have all the answers, someone will call you back to help you through the process.

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How to Finance your Growing Pharmacy with Medical Receivables Factoring

April 9, 2011 By

Hurry up and wait. If you own a pharmacy that is billing private insurance companies, HMO’s and Medicare/Medicaid you know the meaning of that phrase very well. Hurry up and wait is what happens after you submit client claims for payment. You wait 30, 60 and sometimes 90 days before you get paid.

In the meantime, you still need to pay rent, meet payroll and pay your suppliers. Paying them on time is critical for the success of your business.

So, what can you do if you cannot afford to wait to get paid? Going to the bank won’t help you unless you have been in business three years, have great credit, plenty of assets and can provide three years of audited financials. Without them, banks will seldom lend you a dime.

But there is a financing tool that can provide you with the financing you need. Not only that, as your sales increase, so does your financing. This tool will allow you to have the funds to pay rent, meet payroll and pay your suppliers. It eliminates the hurry up and wait game that insurance companies play.

It is called medical receivables factoring or pharmacy factoring.

Medical receivables factoring provides you with financing based on your slow paying insurance claims. As opposed to bank financing, medical factoring is easy to qualify for and can grow, as your business grows.

It works as follows:

  1. You bill insurance companies, Medicare/Medicaid and HMOs as usual
  2. You then submit your invoices to the factor for financing
  3. The factoring company advances you up to 85% of your expected collections
  4. The remaining 15% is kept as a reserve.
  5. You get immediate use of the money. The factoring company waits to get paid
  6. Once the factoring company is paid, the remaining 15% (less a fee) is rebated

 

Factoring financing streamlines your cash flow and allows you capitalize on your biggest asset: your slow paying claims from insurance companies. It is an ideal tool for new and growing pharmacies or healthcare providers who need the cash flow to grow and take their business to the next level.

Filed Under: Pharmacy Factoring, slider Tagged With: , , , , ,

Source Funding Group Expands Services To Help Healthcare Industry

February 4, 2011 By

Hospitals and pharmacies across the United States sit on the verge of submitting bankruptcy. With insurance businesses and federal government healthcare businesses taking up to 4 months to spend on claims it’s no wonder why bankruptcy looms more than a lot of healthcare associated enterprises. With practically no way for hospitals, medical doctors or pharmacies to pace up the payment process they’re left to sit and wait for payment, often indefinitely.

“This is a nationwide difficulty, one that needs to be addressed immediately” says David Rupe, CEO of Supply Funding Group. “I’ve worked in the engineering sector of healthcare for nearly 5 years. As an worker of one of the worlds biggest pharmaceutical distributors I’ve noticed several pharmacies shut their doorways simply because of this difficulty. When i initially founded Supply Funding Group i knew very first hand i could assist medical professionals, pharmacies and hospitals in these conditions, but the industry temporarily drove my firm in a various direction. Now that the dust has settled, so to speak, i want to concentrate on my original intention for founding Resource Funding Group and that’s to assist these healthcare suppliers survive.”

Source Funding Group has partnered with Sun Funds, an industry leader in health care receivables financing to present this new service. “We assume our knowledge of the healthcare market and Sun Capitals experience is the right relationship to have in order to service our clientele in a fast and effective manor. We are certain our consumers in this location will be extremely happy with this financial service.”

Health-related receivables funding, a procedure that used to take six to 8 weeks has been reduce down to ten to twenty days. A significant enhancement that makes it possible for healthcare suppliers to get the cash they will need a lot more quickly.

Filed Under: Medical Receivables, Pharmacy Factoring Tagged With: , , , , , , , , ,