The Benefits of Healthcare Factoring
Here’s How Factoring Can Help Your Company
PRN Funding‘s healthcare factoring services benefit small and medium-sized companies serving healthcare institutions in many ways. Most healthcare companies use factoring to boost their cash flow and eliminate the wait to be paid. However, PRN Funding offers more than just a stable source of working capital.
A Simple Financing Solution
- Immediate cash — We advance you cash on your qualified receivables in less than 24 hours.
- Factoring is fast and simple — One of the benefits of healthcare factoring is that the application process is a cinch. We require no history of profitability, no tax returns, personal financial statements, business plans or personal guarantees. So after initial approvals, you can be on your way to factoring in as little as 24 hours.
- No long-term obligation — There’s no long-term contract to sign. And once approved, you can stop or start factoring at any time.
- Flexibility — You have the freedom to factor when you want, how you want, whom you want, and for however long you want.
- Unlimited capital — Another benefit of healthcare factoring: it can grow with your sales. As sales increase, more money becomes immediately available to you.
- Industry expertise — PRN Funding, LLC works exclusively within the healthcare industry. If you sell to and collect from providers of medical care (physicians, ambulatory care centers, nursing homes or hospitals) there is nobody better than us!
- Leverage off of your customers’ credit — Approval is easy. You don’t need good credit or a long-term operating history for factoring services; all you need is creditworthy customers.
A Stable Source of Cash Flow for Growth Opportunities
- Concentrate on marketing and securing new accounts — Use the time you’ve spent on collections, administration, bookkeeping, talking to banks, etc. and spend it on marketing, sales and other business-growing activities.
- Offer or extend credit terms to customers — You can offer credit terms to your customers to increase your sales without negatively impacting your cash flow. This helps you compete and land more customers.
Back Office Support
- Invoice processing — PRN Funding handles invoice processing, including posting invoices to a computer, depositing checks, entering payments, and producing regular reports.
- Professional collections services — PRN Funding handles debt collections in a professional and productive manner, allowing your staff to focus on high value-added activities.
- Eliminate overhead — You greatly reduce your current overhead cost associated with processing invoices and you eliminate the overhead cost of handling collections.
Factoring Improves Your Credit
- Eliminate bad debt — Another benefit of healthcare factoring with PRN Funding? The non-recourse factoring program assumes the risk of bad debt, eliminating any expense from your income statement.
- Take advantage of early payment discounts — If you can save two percent of your cost by paying bills within ten days, this can help to pay for factoring.
- Factoring helps build your credit — Once you begin factoring and have adequate cash flow, you’ll be able to pay your vendors on time and establish a good credit rating that will let you get credit from other vendors and other financial institutions.
- No liability on your balance sheet — Factoring is not a small business loan; there is no debt, no monthly payments to ‘muddy up’ your balance sheet and make it hard to get other types of financing.
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