Starting up a home health care agency is difficult when your agency lacks ongoing funding. For even an established home health care agency, waiting for payments from state agencies such as Medicaid can cause your home health care business to miss important payment deadlines for obligations such as payroll and taxes. Most businesses need some sort of platform to maintain or grow the company – this is where home health care factoring comes into play.
Home health care factoring can help a company both immediately improve its financial situation and prepare for continued success in the future on a few different levels: Home Health Care Factoring and Cash Flow
- Through home health care factoring, your accounts receivables are purchased so that you can meet payroll deadlines, taxes, and vendor invoices. Your company will benefit because:
- Small business that apply for bank financing are too often turned down by large banks, so applying for such loans can hinder the process of obtaining cash if you spend time waiting for an approval, only to be denied funds.
- Credit unions, community development financial institutions (CDFIs), micro-lenders, and accounts receivable factoring firms are much more likely to approve small businesses for financing.
- Once a business confirms the completion of home health care services, funds can be transferred to an account within hours.
Click here to read the more ways that home health care factoring can benefit your business.