In the typical lifespan of a business, there is a point where expansion is necessary to continue to provide excellent customer experience for a growing number of clients. Merely purchasing more equipment, hiring more staff, or securing a bigger location can be a difficult decision for many business owners because of uncertain future sales. Questions arise: will you continue to have enough business to sustain the increased costs associated with the expansion? Will you also be able to absorb the interest fees on the loan that were necessary to expand?
Medical providers face these same types of issues, and the traditional loans against their fixed assets can make these decisions especially complicated because a repossession of the equipment could render you out of business completely. The risks are high when you are considering expansion, and medical providers are not exempt from these problems.
Providers have a major advantage over typical businesses
Medical providers do have a financing advantage over typical businesses. It comes in the form of physician financing programs through medical lien funding companies like PROVE. Benefits of medical financing programs include:
- Medical providers do not have to wait on payment. PROVE buys account receivables in exchange for immediate payment for the account.
- Medical providers remove their risk associated with accounts receivable. Instead of collecting from patients or legal firms, PROVE pays the physicians directly.
- Physicians can build a larger pool of patients. Instead of avoiding patients at higher default risks, physicians can pass the responsibility of the collection off to PROVE.
A bonus advantage to medical lien financing
Interestingly enough, the same type of relationship between PROVE and physicians can be utilized to generate short term cash that may be needed to cover expenses. Physicians front the costs of treatment and procedures often, yet they are only reimbursed for those costs when the settlement is reached. Hardships happen when the money owed through accounts receivable does not materialize into actual payments or when it is not enough to cover the ongoing costs of the facility. As opposed to waiting and hoping that the bill collectors are lenient until the fees are collected, many physicians are partnering with PROVE to sell existing medical accounts receivable when necessary.
Physicians are presented with growth opportunities
These types of guarantees are few and far between in typical business financial situations and give smart physicians an advantage towards growth potentials. Contact PROVE today to learn about the physician financing programs that are helping so many others solve the critical funding issues facing medical facilities today.