Why Your Practice Should Use Accounts Receivable Financing
Your practice is like any other small business. You are dependent on the cash flow from the invoices that you issue to pay your bills, update your equipment, and pay for other expenses. When you work with an accounts receivable organization, you can keep up with others in the medical industry and improve your cash flow. Here are a few reasons why you should utilize this type of financing.
Gets You the Money That You Need Quicker
As a provider, you have to wait on multiple institutions to pay you and it can take longer than thirty days. Whether it is insurance companies, Medicare, or your patients, the delay can hurt your cash flow dramatically. When you sell your invoices to a accounts receivable lender, they pay you upfront for a majority of the value of the bill. Then they take on the responsibility of following up with your client to ensure it gets paid. The service that it provides to the medical industry lets professionals like you ahead of your expenses and make improvements that benefit those you serve.
Reduces Your Paperwork
There is a great deal of paperwork involved in running your practice, including billing your clients. It can be a challenge to follow up on it all and keep it organized to ensure that you receive the payments you are owed. When you work with an accounts receivable lender, they handle the billing for you. This frees up that part of the job that you do and gives you time to treat your patients. They communicate with the insurance companies, the government agencies that work with the medical industry, and the customers who have a balance with you. You only have to enter the final amount and pay the fee once everything is completed.
Allows You Use the Funds Where You Need It
A drawback to your current billing system is that you must put off renovations to your practice and upgrades to your equipment that can benefit your patients. An account receivables company will pay you a majority of what is owed to you within days of the treatment and the remainder when everything is settled. You can plan for a remodel, purchase the latest equipment and software, or order new furnishings for your office with the cash that you get from your partner. It keeps you competitive in the medical industry and among your peers.