| Although many experts speak of gloom and
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| | has advantages over loans and lines of
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| doom in the medical industry, the fact is
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| | credit. First, factoring financing lines
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| that this industry keeps growing by leaps
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| | do not have arbitrary limits. The maximum
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| and bounds. Every year, the demand for
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| | amount of monthly financing is solely
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| medical services, medical testing (e.g.
| |
| | determined by your ability to invoice. If
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| MRI Centers, Testing Centers, etc) and
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| | your business grows, your financing grows
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| medical supplies keeps getting stronger.
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| | automatically. Also, factoring companies
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| This trend is expected to continue as the
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| | don't require the same collateral that
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| population ages.However, even though the
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| | banks do, so new businesses or doctors'
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| growth trend looks good, running a
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| | offices can usually qualify easily.How
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| medically related business keeps getting
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| | does factoring work? The process is
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| more and more challenging. In the past,
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| | fairly simple. Once an agreement is
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| doctors and medical suppliers could
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| | established with a factoring company, it
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| expect to get large and quick
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| | works as follows:1. Your office submits
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| reimbursements for their services. Cash
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| | your weekly (daily or monthly) billings
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| flow was reasonably easy to manage.
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| | to the insurance company and to Medicare
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| However, Medicare, Medicaid and 3rd party
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| | Medicaid. (note: sometimes this task can
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| insurance companies have put in place
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| | be handled by the factor on your
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| strict compensation guidelines. These
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| | behalf)2. Your office sends a copy of the
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| guidelines can be summarized in two
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| | billings to the factoring company.3. The
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| simple points: you can look to receive
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| | factoring company advances you up to 85%
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| less money than before and you should be
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| | of Net Collectables within 48 hours.
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| prepared to wait longer to get paid.This
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| | Funds are sent by wire or direct deposit.
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| creates a financial "perfect storm" for
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| | The remaining 15% is called a "reserve"
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| medical industry companies. On one hand,
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| | and used to settle billing discrepancies
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| you are getting paid less and waiting
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| | at time of payment. This is returned to
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| longer for your money. On the other hand,
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| | you once the invoices are paid.4. The
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| your operating expenses remain the same
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| | factoring company waits to be paid by the
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| or perhaps are higher. You still need to
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| | insurance company or Medicare/Medicaid.5.
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| pay your employees and your suppliers. In
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| | Once the factoring company is paid, they
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| almost all cases, this limits your
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| | settle out the transaction and rebate you
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| ability to pursue new opportunities and
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| | the remaining 15%, less their fee.The
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| grow your business. In some cases, it may
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| | advantage of factoringFactoring is
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| even threaten your ability to continue to
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| | ideally suited for medical offices and
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| operate your business.Is there a way to
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| | testing centers that are growing quickly
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| "fix" the cash flow problem?If your
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| | and cannot afford to wait the usual 30 to
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| business's main cash flow problem is not
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| | 90 days that it takes to be paid by
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| being able to afford to wait 30 to 90
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| | insurance companies or Medicare. It can
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| days to get paid by insurance companies
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| | provide you with ongoing financing,
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| and Medicare, then factoring your
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| | streamline your cash flow, and most of
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| invoices could be the right solution for
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| | all, relieve the stress of not knowing
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| you.The factoring proposition is very
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| | when you'll be paid.Copyright © 2005
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| simple. Factoring is a way of financing,
| |
| | Commercial Capital LLC All rights
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| in which a factoring company provides you
| |
| | reserved. This article may be reprinted,
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| with advance payments based on your
| |
| | provided the resource box is included
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| outstanding accounts receivable (or
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| | with live linksInvoice Factoring Group
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| invoices). You get funding as soon as you
| |
| | Invoice Factoring Group ( can provide
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| invoice. The factoring funds it and waits
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| | you with a free medical and doctor office
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| to get paid until the insurance companies
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| | factoring quote.
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| or Medicare pay the invoices.Factoring
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