The notion of accounts receivables financing is not entertained as a method to keep cash flow positive by many practices. For many physicians, treatment providers, surgery centers, and private practices the notion is a foreign one. Nevertheless, it’s a process that can remove financial stress.
Outstanding invoices do not pay today’s bills
One of the most common monetary downfalls of running medical facilities is the lack of cash for ongoing expenses like equipment, face masks, and other supply costs. The struggle is not the bills themselves, but the time that insurance companies take to pay for the treatments provided. Because there is a wide gap between service payment and the time vendors expect payments, many practices find themselves stretched thin to cover the bills due to a lack of available cash on hand. With vendors providing the essential elements that keep the doors open, practices find themselves pinned against a wall. Coupled with the added pressures of collecting money that is rightly owed to the practice, and you have a situation that takes valuable resources away from the core business at hand—providing treatments to those who need it.
All business owners, no matter the field, understand that aging accounts is more complicated and less likely to be collected. For medical providers, lien financing programs provide a working solution for all parties involved. Providers receive a lump-sum payment to transfer ownership of the accounts receivables (A/R) over to a funding company, like PROVE. The company then proceeds to collect upon the individual debts.
A simple financing solution that can benefit your practice
The concept of accounts receivable financing was born from the need to collect payments as soon as possible and reduce risks of bad debts and the collection process. Accounts receivable funding with PROVE is simple:
- We purchase the accounts receivable that are on the books.
- The provider recovers money immediately.
- We assume the risks of collection.
It is that easy. When a reliable funding company buys accounts receivable, the legal rights to the debt are assumed by them in exchange for a discounted payment that goes to the practice immediately. The purchase of debt gives fast payments that assist providers. The company then gains the potential to collect 100% of the debt. Alternative financing enables medical practices to grow and open up new revenue streams with patients they once refused.
We were born out of a necessity to have cash on hand
PROVE was created over 20 years ago as a financing solution for cash-strapped medical facilities who have money owed to them, but little cash on hand due to the collection process. With bank loans being difficult to secure and A/R not being considered as assets, the need for alternative forms of financing became a necessity if many facilities were to remain open.
If you could benefit from an accounts receivable buyout or immediate working capital, contact PROVE to discuss your options.
Email: info@provepartners.com
Call: +1-877-909-3111
