The medical field has two assets can be used as collateral to gain access to immediate cash when needed. One asset can put businesses at risk of closing; the other offers cash flow with zero risks to the asset holder.
Equipment as collateral for loans puts your practice at risk
The first is the most obvious and the one that traditional lending facilities take into consideration when potentially lending money to a provider, which is physical assets like owned equipment. Borrowing against medical equipment is quite dangerous for facilities because clinic operations without crucial equipment would be impossible. In essence, this kind of lending assures that if the loan plus interest is not paid, you will be put out of business altogether.
Repossessions of equipment can happen if the loan is defaulted at any time, even if you only owe a small amount of the loan. When you do not have enough cash to pay the premium, then the necessary equipment for you to continue practicing can be repossessed and sold. The prospect of risking your entire practice to secure a small amount of capital is not an ideal prospect for any business. It makes little sense if there are more appropriate assets that can be utilized to produce cash on hand.
A nonphysical asset that is often omitted in health care
Luckily for physicians, hospitals, treatment providers, surgery centers, and other healthcare professionals, there is an alternative form of financing available through PROVE. Our medical lien financing programs do not use your physical assets as collateral to secure immediate cash. By considering account receivables as assets that can be sold to generate immediate income, providers can counteract the cash shortages that happen from time to time without risking everything to secure a loan.
PROVE purchases your qualified medical account receivables for cash, transferring the collection risks to us, and removing the potentially damaging effects of default from your bottom line. We enter into a legal arrangement with you to purchase the accounts that are owed to you by patients awaiting settlement for legal cases, workers comp or other issues.
While these accounts are typically the source of more collection risks as they age, and generally become more difficult to collect, the arrangement with PROVE allows you to remove them from your books altogether. The money provided in exchange for these accounts is presented in a short time frame, sometimes in less than five days, and is yours to apply towards the expenses that must be paid to keep practicing. If the accounts receivable fall into default and the amounts owed are not collected, no penalty gets shifted or applied to your practice, nor is there any interest or collateral that can be repossessed. You are paid for your medical accounts receivable on time and without incident, allowing your practice to rest assured that you are compensated for your work and can count on those payments to stay in business.
Contact PROVE today to find out more about account receivables as an asset and the financing options we can provide you.