A lot of questions can come up when a business owner starts researching medical billing funding solutions—the idea of selling their invoices to a factor or medical billing funding agency. This article addresses some of the more frequently asked questions:
What differentiates a factoring firm who funds medical billing companies from a bank?
First and foremost, since medical billing factoring is not a loan, there is no debt on your medical billing company’s balance sheet. Moreover, factoring firms have the ability to make a quick decision regarding your medical billing funding options, while banks may take weeks—even months—to approve a loan.
Furthermore, factors determine lines of credit based on the creditworthiness of your customers, while banks focus on your company’s financial history and cash flow. In other words, a medical billing funding agency looks to your company’s future while banks place emphasis on your company’s past.
How long does it take to be approved for medical billing funding solutions?
In general, a medical billing funding agency will begin its due diligence process after receipt of a signed contract. This process can last anywhere between 1-5 business days, and money is moved at its conclusion. Thereafter, a medical billing service can receive funds in as little as 24 hours within verification. See our medical billing factoring process and learn our medical billing funding options can benefit your medical billing business.
Click here to read more Frequently Asked Questions and Answers related to factoring for medical billing companies.