Medical providers face various challenges in their daily operations. One of the biggest is the time it takes to receive payments on invoices. Delayed invoice payments can restrict cash flow and drastically affect operations.
That’s where factoring companies come into play. These companies purchase unpaid invoices at a discount, allowing medical providers to obtain funding despite delayed payments.
However, choosing a factoring company can prove challenging due to the numerous companies available. That said, use these steps when picking a medical factoring company
First, create a shortlist of several companies. You can quickly do this by performing an Internet search. Alternatively, ask colleagues in the healthcare field to suggest reliable companies.
Next, interview the companies you’ve shortlisted. Here are some key questions you should consider asking when you’re conducting the interviews:
a) How many years of experience do you have?
Ideally, you’ll want to pick a company that’s been in business for several years. However, if the company is new, inquire if the founders have experience working in the industry.
b) In what industries do you specialize?
While some medical factoring companies are generalists, others prefer to work with companies that focus on specific areas. When picking a company, ensure you choose one familiar with your particular field.
c) Do you charge an audit and due diligence fee?
Some companies charge these fees to offset their expenses. Ensure you understand how much each factoring company charges for its services before you settle for one.
d) Do you finance Medicare or Medicaid Claims?
Some medical factoring companies don’t finance Medicare or Medicaid claims since they have special requirements. If you invoice any of the two, ensure the factoring company can finance these claims.
Pick a Factoring Company
Once you’ve asked these questions and received several factoring proposals, you’ll need to make a final decision. Choose a company that offers great terms and charges competitive fees. Also, ensure you pick a company you’re comfortable working with for a long period. Contact the experts at WCK Financial for more information on what to consider when choosing a suitable medical factoring company.