Bridging the Money Gap with Medical Accounts Receivable Financing

Many people are not familiar with medical accounts receivable financing and how it works. Medical facilities sometimes require financial assistance to help bridge funding needs for payroll, technical equipment and rent. Medical accounts receivable financing is designed specifically for medical practices and facilities.

Bridge the Gap

The main objective in medical receivable financing is to bridge the gap between service and payment. Many businesses are slow paying when it comes to medical expenses. If you are running on a tight operating budget, you cannot always afford to wait three or four months to get paid. This is the idea behind receivable financing.

How it Works

Medical receivable financing companies will pay the medical facility the money they are owed, before they receive it from qualified companies. For example, as long as the accounts receivable is from a health insurance company or another qualified provider, they will immediately give the money to the clinic. They will then charge interest on the money and wait for the payment from the insurance provider. The clinic then reimburses the medical receivable financing company, with interest. This allows the medical facility to keep a comfortable level of cash flow along the way. 

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