Overview of the Medical Supplies Industry

Without proper supplies, any venture will fail. This is especially true in the medical industry, where supplies are vital to good healthcare. While there is a shortage of doctors and nurses, there is no shortage of sick people in our aging population so the demand for supplies is ongoing and everlasting.

Globally,the  medical equipment and supplies industry has annual revenues of $273 billion and is expected to grow to $349 billion in 2016. Included is a vast array of products: catheters, monitoring systems, pumps, wound care, specialty bags, etc. Some key markets include surgical supplies at 45% of the market, with catheters ($32 billion) as a significant subset as well as patient monitoring systems ($9.3 billion) and wound care supplies.

The medical supply industry is expected to increase as the percentage of the elderly portion of the US grows by 146% from now to 2050. Technological innovation is also expected to impact the industry positively, as well as an increase in medical tourism and advertising of products directly to potential customers.

As medical supply companies grow, they need better cash flow to manage their resources. Factoring is a way to keep staff and bills paid so the company can focus on making excellent and innovative products to save lives.

For the full article, see Medical Equipment and Supply Industry: Market Research Reports, Statistics and Analysis

Medical Technology Reduces Error, Saves Lives

In any industry, communication is key- but none more so than healthcare, where it literally means life or death for patients every single day. The Institute of Medicine estimates that 98,000 people die every year from preventable medical errors, which would make it the 6th leading cause of death in America if the CDC counted the category.

According to the article The Clinical Connectivity Gap, breakdowns in communications systems are a common cause of medical errors. Many hospitals are starting to use technology like Bedside Medication Verification Systems that ensure caregivers deliver the right medication dosage at the right time. The use of technology greatly reduces unavoidable human error in dosage.

Another medical innovation that can reduce error is Electronic Health Records (EHRs), which are a systematic collection of health information about individual patients or populations. EHRs are still in their infancy but are being implemented more and more, despite a high cost. Starting in 2015, all hospitals will be required to use them or face penalties under Medicare.

As more hospitals implement technologies like EHRs and Bedside Verification Systems, costs are inevitably going to rise. Some may turn to factoring for cash flow financing, so factors should be aware of trends and changes within the industry.

Size of Staff Now Matters to 2014 Obamacare

While the Affordable Care Act doesn’t go into full effect until 2014, business owners should be aware that the size of their staff this year determines whether they are hit by penalties.

Most SBOs know by now that any company with over 50 full-time equivalent employees will be required to provide healthcare for their employees in 2014 or face fines. However, some aren’t aware that the government will be using staff data from 2013 to determine whether a company falls under the provision. According to the WSJ article Insurance Rule Will Go By Size Of 2013 Staff, this could change some SBO’s plans to change their staff next year. Rather than wait, they should make the changes this year while there is still time. A misunderstanding of the provision’s rules will have some companies blindsided with penalties in 2014.

Once business owners get wise to the rules, staffing in these companies may be rearranged and reorganized. Change often brings opportunity, and industries like temporary staffing will probably be the most affected.

2013 Factoring Conference

The 19th annual Factoring Conference, sponsored by the International Factoring Association, will take place this year on April 24th-27th at Miami Beach’s Fontainebleau Hotel. Below are some facts about the conference, which is sure to be a valuable experience where factors can learn new information and network with peers.

Speakers: There are many guest speakers lined up to talk on a number of subjects, but the two most eagerly anticipated speakers are Warren McDonald and Kevin Mitnick. McDonald is a world renowned mountain climber who also happens to be a double leg amputee, and Mitnick is a famous former computer hacker turned computer security consultant. McDonald’s “Challenge in Change” speech is scheduled for 9am on Thursday the 25th, followed by Mitnick’s “Art of Deception” at 11.

Accomodations: The conference will be held at the Fontainebleau beachfront hotel in Miami Beach, with rooms going at $269 per night at the Factoring Conference group rate. Register your room here.

Activities: There are many activities planned for the four day conference, including but not limited to: Golf Tournament, Portfolio Management, 5K Fun Walk for Charity, and an Everglades tour. See the full list of activities here.

Exhibitors: There will be over 40 companies exhibiting at the conference, and there is still time to register your company to exhibit as well. There are also sponsorship opportunities.

For the full website on the conference, go here.

Reverse Factoring 101

According to The Global Trade review article Supply Chain Finance, the process known as supply chain finance (SCF), or reverse factoring, is the next logical step for factors. The article points out that factoring companies can build on their own receivable offerings and supply this in-demand service to their customers, though some factors are hesitant due to the high cost of implementation. There is a distinct lack of knowledge about this sector, so this post will attempt to enlighten readers on how SCF works.

The SCF process involved the same three parties as the regular factoring process: the factor, the supplier, and the ordering party. In regular factoring, the supplier initiates the process in order to get cash for their receivables. In reverse factoring, the ordering party initiates factoring by choosing which invoices they will allow to be factored. The supplier then chooses which need paid. The end result is the same: the supplier gets advanced funds from receivables.

Reverse factoring is beneficial to suppliers because they get better terms than they would otherwise. It usually works best for small suppliers and big companies as the ordering party. A factor benefits because they are working with companies that have a good, mutually beneficial business relationships and therefore lessening risks of non-payment.

Reverse factoring seems like a logical step for factors. Whether they get on board or stick to what they know best remains to be seen.

What Does Obamacare Mean for Small Business?

While the brunt of the Affordable Care Act doesn’t come into effect until next January, now is the time for small businesses to get informed and make plans for the future. Although companies with fewer than 50 full-time equivalent employees will not be penalized for not offering healthcare, there are several things that they must keep in mind.

Disclosure: At the very least, small businesses are required to inform their employees in writing about the new law and health exchanges. The deadline to do so was originally March 1st, but now information about exchanges should be avaialble to employerts starting in October. If they do offer healthcare, then they also must make sure it complies with the ACA.

Exchanges: Starting in 2014, state health insurance exchanges will be established that allow small businesses to shop for affordable coverage. Businesses with 100 or fewer employees are eligible for the Small Business Health Options Program (SHOP), although some states may opt to lower the requirement to 50 employees or less until 2016. Companies can also choose to shop on the traditional insurance market, and private third party exchanges will be set up as well.

Costs: The question on small business owners’ minds is what healthcare reform is going to cost their business. According to an Urban Institute analysis last year, small business costs might actually be reduced by the new law. Costs per person would only be higher for mid-sized businesses, and large business costs will likely stay the same.

Now is the time to get informed about what Obamacare means for small business, while there is still time to prepare. Know the requirements now so you don’t get blindsided by unforeseen costs in the future.

For the full article, see Obamacare 101

Tips to Avoid Lumpy Money

Cash flow issues are a constant source of worry for some industries, such as start-ups or seasonal businesses. This “lumpy money” syndrome, where cash from customers is intermittent and slow, affects many companies but luckily can be mitigated by following a few simple tips.

Cash Up Front: Instead of waiting for payment, ask for a down payment or retainer at the beginning of a large order. Due to the down economy, it is no longer taboo to ask for payment early on in the order process.

Credit Cards are Your Friend: Don’t worry about credit card processing fees. Sometimes, even just a percentage up front can be better than waiting months for cash. You can run your business while the bank does its thing.

Customer Credentials: You have to know who you are doing business with, and in the online age it is easy to do background research. If the research fails to yield anything, ask for references.

Factoring: In certain industries, selling your accounts receivable at a discount is an effective way to get cash up front. Some expenses like payroll have to be paid every month, and factoring can help even out cash flow.

These are just a few tips to bettering your company’s cash flow. Do what is right for your industry and eventually you will smooth out those lumps.

For the full article, see 5 Tips for a Better Cash Flow

Not Supporting Small Business is Bad for the Economy

In the wake of the fiscal cliff debates, some are worried that big government is overlooking the little guy. According to Yahoo! Small Business, several leading business observers are criticizing the Obama administration’s treatment of small business.

Lloyd Chapman, President of the American Small Business League, recently posited that the government’s plan to fold the Small Business Administration (SBA) into the Commerce Department to try and save money is a folly. He is of the opinion that the merger would ultimately hurt small businesses and redirect money towards large corporations. He suggests instead that the SBA be strengthened and federal programs be directed towards the nation’s leading jobs creator.

Jim Clifton, CEO and Chairman of Gallup research, says that the continuing recession is the fault of elected officials who are not focused on creating wealth. He argues that they do not understand how important small business is, nor how crucial support is for small business success.

Small business is crucial to a functioning economy- but just how crucial remains to be seen. In the coming months and year, we will see more than ever the wide ranging effects of supporting or hindering small business success.

For the full article, see Not supporting small business is economic suicide, observers of economy say

US Family Businesses Optimistic About Growth

Even in hard times, you can count on family to keep things on the bright side– family businesses, that is. According to the ABF Journal, US family-run businesses are more optimistic about growth prospects compared to their overseas counterparts. 93% of US businesses compared to 81% of global peers are confident that new opportunities will arise and that they will be able to capitalize on them.

While challenges still exist and are of concern to family businesses, confidence is at a two year high and concerns about economic challenges have waned. According to the article, this suggests that these businesses are adapting to changing market conditions and are accepting volatility and uncertainty as the “new normal.” They are willing to take risks and are now actively seeking growth opportunities whereas before they were content to sit back and watch what happened.

With renewed interest in growth, family businesses are going to have to consider extra funding for their ventures. For companies that have trouble securing bank loans, factoring is an option as long as they have invoices and their customers meet the criteria. Factoring could be a way for everyone to benefit, and to continue the optimism of US family-run companies.

For the full article, click here

Modern Challenges to Factoring

The way we do business is constantly changing and companies either have to evolve and adapt, or die out—and factoring companies are no exception. In a recent interview with Dash Point Financial President Jeff Callender, he points out several modern changes to the factoring industry.

More Small Factors: Factoring for companies with under $10K per month in receivables used to be a niche, but now there are more and more companies joining the fray. This increases competition, but with more awareness there is also a bigger customer pool.

Sketchy Clients: Because most factoring companies tout that a client’s personal credit history doesn’t matter, Callendar has noticed a trend of “less desirable” clients applying as an alternative to a bank loan. While credit history doesn’t technically matter, factoring companies have to consider the character of a potential client when considering whether to take their business.

More Awareness: The public is more aware of factoring than ever before, and this means they’ll be doing independent research. Often they waste everyone’s time if the factor they research does not suit their needs.

A broker can be the best option, because they have the resources to perfectly match client and factor. Factor Finders is one such broker, and we are experienced in saving clients time and money by eliminating the search process and meeting client’s needs every time.

For the full article, click here

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