Medical ReceivablesFactoring

What is Medical Receivables Factoring?

merchant cash advance

Medical receivables factoring allows healthcare providers to sell their outstanding accounts receivables for an immediate influx of cash.

Besides needing funds for operating expenses and working capital requirements, providers in the healthcare industry are constantly challenged by changes in technology and other demands on their capital allocations. Unlike traditional lenders who offer companies secured loans with their accounts receivables, this type of funding removes the burden of repayment from companies and puts it on their debtor.


How Does Medical Receivables Factoring Work?

Receivables factoring for healthcare is the selling of outstanding accounts receivables from a healthcare provider to a lender. Once purchased, the lending company—such as Factor Funding—will send funds at an advance for 70-95% of their value. Once the receivables are paid, Factor Funding will send the remaining value minus a small factoring fee. This helps healthcare providers maintain a steady cash flow to pay expenses needed for daily operations and not be slowed down unnecessarily.

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The Challenges Healthcare Providers Face:

Dwindling reimbursement rates

Longer payment cycles

Increased demand

Difficulty accessing needed financing

Our Clients Use Medical Receivables Factoring to:

UseServiceTo UpgradeTech

Upgrade technology

UseServiceTo Pay

Pay expenses

UseServiceTo Replenish

Replenish working capital

UseServiceTo Expand

Expand their businesses

With medical receivables factoring, the money a healthcare provider elects to receive on a weekly, biweekly, or monthly basis will come with no strings attached.

Download the Free Guide to Medical Factoring

Medical Receivables Factoring Process

step 1

Complete and submit a medical receivables factoring application to a company like Factor Funding to see if you qualify.

step 2

Your request will be reviewed and a representative will contact you to discuss your status and options.

step 3

Once approved, arrangements will be finalized.

step 4

You will then send the outstanding accounts receivables you agreed to sell in the agreement document.

step 5

Factor Funding advances a portion of the value of each account received.

step 6

You use the funds to run your day to day operations and for any other business needs.

step 7

Factor Funding collects the invoice and payment from each account.

step 8

Factor Funding forwards the balance of your profits—minus a small fee to you.

step verified

Once you have qualified for our service, your next factoring request will be available even faster.

Requirements For

Medical Receivables Factoring

Funds are available to healthcare providers with at least $100,000 in net monthly receivables payable by any of the following:

Insurance companies

State workers’ compensation insurance companies

Managed care agencies




State and local government contracts

Other businesses

Required Documentation
medical receivables factoring documentation

To complete our medical receivables factoring application, we may ask for some or all of the following:

  • Articles of Incorporation or Assumed Name certificates
  • Copy of applicants driver’s license and social security card
  • Accounts receivable aging and invoices
  • Copy of business/liability insurance
  • Customer list
  • Copy of contracts or purchase orders
  • Copy of operating authority (MC#_______) (Trucking)
  • Worker’s compensation insurance (temporary staffing firms)
  • List of all jobs currently working on (construction)
  • Federal Tax Identification #/W-9

Medical Receivables Factoring

Who uses factoring for receivables? Healthcare providers with outstanding accounts receivables who are struggling with cash flow shortages. This includes:

WhoUses Diagnostic and Imaging
Urgent Care
WhoUses Primary Practices
Primary Practices
WhoUses Nursing Home
Nursing Homes
WhoUses Diagnostic and Imaging
Diagnostic and Imaging Centers
WhoUses Physical Therapy
Physical Therapy & Rehabilitation Centers
WhoUses Home Healthcare Agencies
Home Healthcare Agencies

Benefits of Medical Receivables Factoring

— Especially with Factor Funding
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Reduce Your Credit Risk and Grow Your Business

Don’t try and float debt on credit cards or consider other creative financing solutions that could risk your business and personal credit. Contact Factor Funding today to learn how to reduce your credit risk and grow your business through our medical receivables factoring program.

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Years of Experience

Factor Funding has been in business for over 20 years. We provide accounts receivable funding and other short-term loans and business services throughout the United States.

Get in Touch With Factor Funding

To Get Started with Medical Receivables Funding

What better way to get the peace of mind you need surrounding your business financing than from an expert with decades of experience helping countless others in exactly the same way?

Reach out for assistance to ensure that your feeling of being in a rut over finances doesn’t last long. We get companies the quick cash they need to get things done in the here and now so they can focus on company success.

Waiting around won’t get you to the next level and help you reach goals you know your business is destined to achieve. We look forward to chatting about your business needs and how we might be able to partner with you!

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