New to Factoring?

For those who aren't familiar with factoring, it is basically a fast way to get cash to run your business.

Factoring is Not a Loan

When you send your customers an invoice, they usually have 30 days to pay you back. Factoring companies will give you the bulk of the cash up front, sometimes within 24 hours, and collect the payments from your customers themselves. Once the invoices are paid in full, you’ll get the balance left over, minus a small fee.


Factoring Doesn't Require Debt

Sounds simple enough – fast cash for your business – no loans, no debt.

So how do you go about choosing the best factoring company?

Not all of them are created equal. Not all of them will give you the same level of service you need to help grow your business.

Everyone claims they have the simplest rate structure in the industry, no long-term contracts, same day funding, no up-front fees, no monthly minimums or maximums, etc., etc., etc.

We also offer these same benefits, but we GO THE EXTRA MILE FOR YOU that other factoring companies don’t.

Here’s Why We Are The Factoring Company You Need For Your Indianapolis Business

No other factoring company matches our level of superior service and offerings.


As you can see, we simply have more to offer you.

Other factoring companies don’t even compare.
Indianapolis

And Not All Factoring Companies Can Say This:

More than half of our new business comes through client referrals.

Some of the benefits you receive with factoring are:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Information for the city of Indianapolis

The largest industry sectors by employment in Indianapolis are manufacturing, health care and social services, and retail trade. Compared to Indiana as a whole, the Indianapolis metropolitan area has a lower proportion of manufacturing jobs and a higher concentration of jobs in wholesale trade; administrative, support, and waste management; professional, scientific, and technical services; and transportation and warehousing.Companies[edit] ounded in the city in 1876. in downtown Indianapolis.Many of Indiana's largest and most recognized companies are headquartered in Indianapolis, including pharmaceutical manufacturer and Company; are also located in Indianapolis.

 

Other major Indianapolis area employers include . In addition, Indianapolis hosted auto parts companies such as , which provided acetylene generators for brass era headlights and acetylene gas starters.ATA ) was headquartered in Indianapolis prior to its collapse.Business climate and real estate[edit] magazine ranked Indianapolis the sixth best city for jobs in 2008, based on a combined graded balance of perceived median household incomes, lack of unemployment, income growth, cost of living and job growth. However, in 2008, Indiana ranked 12th nationally in total home foreclosures and Indianapolis led the state.Indianapolis the most afable major housing market in the U.S. for the fourth quarter of 2009.

 

That year, Indianapolis also ranked first on CNN/Money's list of the top ten cities for recent graduates.In 2010, Indianapolis was rated the tenth best city for relocation by Yahoo Real Estate, and tenth among U.S. metropolitan areas for GDP growth.In 2011, Indianapolis ranked sixth among U.S. cities as a retirement destination, as one of the best Midwestern cities for relocation, best for rental property investing, and best in a composite measure that considered local employment outlook and housing afability.A 2013 analysis by site selection consulting firm ranked Indianapolis as the most cost competitive market for corporate headquarters facilities in the United States. Also in 2013, Indianapolis appeared on list of Best Places for Business and Careers

 

 

Information for the state of Indiana

A high percentage of Indiana's income is from manufacturing. The Calumet region of northwest Indiana is the largest steel producing area in the U.S. Indiana's other manufactures include pharmaceuticals and medical devices, automobiles, electrical equipment, transportation equipment, chemical products, rubber, petroleum and coal products, and factory machinery. Despite its reliance on manufacturing, Indiana has been much less affected by declines in traditional Rust Belt manufactures than many of its neighbors.

 

The explanation appears to be certain factors in the labor market. First, much of the heavy manufacturing, such as industrial machinery and steel, requires highly skilled labor, and firms are often willing to locate where hard-to-train skills already exist. Second, Indiana's labor force is located primarily in medium-sized and smaller cities rather than in very large and expensive metropolises. Indiana is home to the international headquarters and research facilities of pharmaceutical company Eli Lilly in Indianapolis, the state's largest corporation, as well as the world headquarters of Mead Johnson Nutritionals in Evansville. Overall, Indiana ranks fifth among all U.S. states in total sales and shipments of pharmaceutical products and second highest in the number of biopharmaceutical related jobs.

 

We will buy your invoices and give you the cash immediately.  

There are many reasons why factoring has become a popular and valuable financial tool for businesses today. The key benefit of factoring is that a business receives a quick boost to its cash flow: in fact, many factoring companies offer cash on their Accounts Receivable within 24 hours! -Indianapolis Factoring Companies

 

 

FACTORING FOR BUSINESS OWNERS  

Indianapolis Factoring Companies Articles

Effective Ways for Small Businesses to Avoid Cash Flow Problems

 

Without steady cash flow most businesses will fail to thrive, especially small businesses and start-ups. We've all heard the phrase "Cash Is King" and that's certainly true for established businesses, but for new businesses just getting started cash flow is even more important. Sadly, many new businesses fail to realize just how devastating cash flow problems can be to a business trying to establish themselves in the market. In fact, many businesses die a sad and lonely death simply because of bad cash management, and these are businesses that would otherwise have survived had they not experienced cash flow problems. Statistics show that 82% of businesses fail because they were unable to manage their cash. That's a tragic figure, especially when there are effective ways for new, small, and even large businesses to avoid these problems.

 

So, let's take a look at some important rules that small businesses should be aware of to ensure they never have to face liquidity.

 

No. 1: It's Cash That Sustains Business Growth

 

So many businesses don't consider cash flow an issue because they see the orders flooding in; however, many growing companies do experience cash flow problems. Increased sales generally mean increased costs to deliver orders; plus, in order to support the new volume of business other sections of a business typically need to grow. Your business may appear to be highly successful as orders continue coming in, but keep in mind that the faster your business grows the more financing it will need.

 

No. 2: Margins Are Just Accounting - They're Not Cash!

 

We know that accounting, and accountants, can be pretty creative with figures because there's nothing shareholders and board members love more than hearing about the industry-leading margins you're achieving; but your board members and shareholders are not the ones who have to find the money to meet payroll and pay your landlord. Margins don't pay your employees. Your sales may be booked down when your customer's order is delivered, but how long will it be before you receive payment? 30, 60, 90 days, or even longer? If your customers are not paying you and you're struggling to pay your expenses, your business is now in survival mode. Keep in mind that you may have great accounting margins but still have an empty bank account.

 

No. 3: When You're Selling B2B (Business-to-Business) Cash Flow Problems Will Likely Be Your First Issue

 

The more sales you make the more money you make, but when you're selling B2B it's not always that simple. Yes, you sell and deliver goods or services to another business and provide them with an invoice, and your customer will pay the invoice at a later date. But how much later? If you chase the business too hard for payment they'll probably never work with you again, so you could receive payment months later. You're not going to pass up businesses who buy with high volume, so you have no choice but to wait. So, you end up with a cash flow problem.

 

No. 4: Cash Flow Problems Can Occur Very Quickly

 

It doesn't take much for cash flow management to become a serious problem, so monitor your cash flow very carefully. Determine how much of your working capital is locked into receivables, inventories, raw materials, and so on; and know exactly how much money is required to meet both your sales targets and operating expenses. You may have made the sales but that doesn't mean you have the cash, and you may have paid for inventory but that doesn't mean it's automatically a cost of goods sold.

 

No. 5: Your Inventory Ties up Cash

 

You can't sell your goods until you've purchased or built them and, whether your goods are sold or not, your vendor still expects to be paid. This means that your inventory is locking up your cash. You could eventually make two times or even three times your money on your inventory, but margins do not equal cash.

 

No. 6: You Must Be Practical About Working Capital

 

Working capital is the figure left over when current liabilities are deducted from current assets, which means it's the money you have in your bank account available for meeting operating costs, paying vendors, and buying inventory - all the while waiting for your business customers to pay your invoices. Understanding and grasping the concept of working capital is a very necessary survival skill in business because being able to maintain sufficient cash to pay your own financial responsibilities whilst dealing with all the unknowns in business can be very tricky.

 

No. 7: Be Clear on What "Accounts Receivable" Actually Are

 

The money owed to you by your customers is called accounts receivable, which means the money that's sitting in your customer's bank account that belongs to you is called receivables. Just like inventory, the amount of money in your accounts receivable column is money you don't have. Certainly, you've done the deal and you've sent the invoice, but now you're waiting to be paid. You must remain very vigilant until such time as the invoice has been settled and the money is physically in your bank account.

 

8. Monitor the Health of Your Business Very Closely

 

Three aspects of your business that require close monitoring include -

 

-Inventory Turnover: Measure how long your inventory stays on your balance sheet without being converted to cash;

 

-Collection Days: Measure how long it takes to receive payment for services rendered or goods sold;

 

-Payment Days: Keep a record of how long you wait before paying suppliers.

 

Now, make a plan. Project these figures out to 12 or 18 months ahead then compare your plan to what actually occurs. This is a really great way of gaining some insight into your own business.

 

No. 9: Prepare for Financing before You Actually Need It

 

Don't wait until you need financing to start reaching out to finance companies. Contact companies who provide financing, especially credit line financing, and look for products where interest is not payable if the money is not used. Don't wait for your business to have cash flow issues. Waiting until you urgently need cash or a loan will subject you to higher interest rates and dodgy terms. Start the process while your business is healthy, which will allow you to negotiate finance terms from a position of strength. We strongly suggest you be proactive and find a partner ready to finance your business; a partner that's prepared to grow with you.

 

 

We will buy your invoices and give you the cash immediately.

 

 

Indianapolis Factoring Companies Articles

Bookkeeping for Freight Brokers and the Most Common Mistakes Businesses Make

 

A freight broker is either a company or an individual who effects the transportation of goods by pairing up shippers with transportation services. The freight broker is not only responsible for pairing reliable and authorized transportation carriers with shippers, but also organizing the shipping needs for various organizations. Besides matching shippers with carriers, a freight broker is also responsible for ensuring each and every piece of cargo reaches its destination - and in good condition.

 

In addition to these tasks, freight brokers are also responsible for maintaining accurate bookkeeping records, and those who fail to keep meticulous accounting records are likely to lose money in the long run. In this post we've detailed what we believe are the most common accounting mistakes freight brokers make, and ways in which they can be avoided.No. 1: Attempting to DIY Your Bookkeeping Can Result in Costly Errors

 

Whether you handle the books yourself or delegate this vitally important job to an unqualified employee or even a family member, DIY bookkeeping is seldom, if ever, a good idea. Yes, initially you'll undoubtedly save some money, but your inexperienced bookkeeper's errors can ultimately become very costly to your business and result in expensive financing terms, increased bond premiums, and other unnecessary costs.

 

We strongly suggest you employ the services of an experienced bookkeeper who's qualified to deliver accurate accounting records, which will ultimately result in fewer errors and the job being completed quickly and efficiently.

 

No. 2: Postponing Important Bookkeeping Tasks Due to Heavy Workloads

 

It's not easy running a business, and anyone who finds themselves in this situation understands only too well just how difficult it can be to find the time to complete day-to-day time-consuming tasks. It's imperative that things like reconciling credit card and bank statements be completed each month because it's only through these reconciliations that errors can be found; plus of course it's how you determine out how much credit or cash you actually have.

 

As tempting as it may be to postpone these tedious tasks, you must ensure that your credit card and bank statements are reconciled every month, ideally as soon as you receive each statement. Keeping on top of statements means you can quickly identify any lost checks, missing deposits, or fraudulent charges, and be able to handle any discrepancies in a timely manner.

 

No. 3: Failing to Track Receivables and Invoices

 

Your business depends on you getting paid, and you won't be paid if you're not regularly and properly accounting for receivables. The lifeblood of your business is cash, which means the success of your business is entirely dependent upon you accounting for receivables. To put it another way, if the period of time between paying your carriers and receiving payment from customers is unnecessarily delayed by poor accounting practices, your business cash flow is going to be very strained.

 

If you're time-poor and realize you simply don't have time to track and collect invoices, then invoice factoring is the perfect solution for you. For just a small fee your applicable invoices will be purchased by the invoice factoring company, but the best part about invoice factoring is that you receive immediate payment! No longer will you have the time-consuming responsibility of trying to collect payments, thus saving an enormous amount of office time: plus, it leaves you free to take care of your own job, which is handling the day-to-day running of your business.

 

No. 4: Overlooking Liabilities Can Have Disastrous Results

 

When a surety inspects your business records to underwrite a bond, one of their first and most important considerations is whether your assets are sufficient to cover your liabilities. It's difficult for inexperienced bookkeepers to understand the full implications of accurate record keeping and sometimes DIY accountants record a liability but once the payment is made they forget to reverse the liability. This is a serious error because it understates net income while overstating liabilities, which makes your business appear less financially stable than it actually is.

 

The only way to avoid these unnecessary accounting errors is to hire an experienced bookkeeper. It's always handy to have another set of eyes, whether it be a CPA or an owner, to regularly review the balance sheet and check for discrepancies in account balances.

 

No. 5: Miscategorizing or Creating Unnecessary Expense Categories

 

All too often we see inexperienced bookkeepers either creating unnecessary expense categories or wrongly categorizing expenditures, either of which can be a huge red flag. Generally, each industry uses a standard set of categories for expenses and failing to follow this set of rules can signal to a surety or loan underwriter that an inexperienced person is handling your books; meaning that they may not be well prepared.

 

It's really important that your business's accounting software is correctly set up, preferably with the help of an accountant or experienced bookkeeper. Additional expense categories should not be added unless absolutely necessary. If you have any queries about how to classify expenses, don't hesitate to ask for guidance from your qualified accountant or CPA.

 

No. 6: Submitting Invoices with Insufficient Details

 

Don't try to save time by skimping on invoice details. Your customers' invoices should have detailed information on each line item; for example, do you invoice per mile, by weight, or by piece? Is the charge a flat fee? If there are additional charges such as fees or reimbursements for fuel, these should be listed as separate line items. The only way to avoid any confusion is to ensure that charges are properly detailed on invoices.

 

The last thing you want is for your customers to complain about charges they don't recognize on their invoices; and missing information can cause much confusion, resulting in delays in payment. All of these problems can be prevented by ensuring that your invoices have complete, detailed, and accurate information. Don't create unnecessary problems by trying to skimp on invoice details.

 

No. 7: Not Learning or Understanding the Full Functionality of Your Accounting Software

 

Getting a business up and running can be very expensive and time-consuming, and many freight brokers simply don't have time to learn how to use their accounting software package to its full capacity. This is not a problem if all your accounting and bookkeeping tasks are being outsourced; however, if you're using the software in any way at all, perhaps even just for entering checks and running reports, we strongly recommend that you learn how to use all functions of your accounting software package.

 

You can save so much time and have easy access to real-time information on the financial status of your business if you have the right accounting software and you know how to use it correctly. Having this information at your fingertips can help you make the right decisions to grow your business.

 

 

 

 

 

 

Indianapolis Factoring Companies Articles

Business Is Booming but Your Company's Cash Strapped!

 

A business needs good cash flow for many reasons, and many businesses have learned the hard way that business can be booming but they can still suffer from cash flow problems. There are many scenarios where a business might urgently require access to cash: it could be due to the sudden growth or expansion of a business, a major transaction may need to be expanded, perhaps there's a need to purchase equipment or even to employ more personnel.

 

Interestingly, research shows that many businesses (both small and medium-size) fail, not because business is bad, but because they experience difficulties when trying to meet short-term financial responsibilities. So how can a growing and profitable business get into serious financial trouble, or even go broke? It seems so contradictory, but on closer examination you'll see that it's not surprising at all.

 

Many Businesses Experience a Cash Flow Dilemma

 

It's so easy for a business to get into a situation where they have a cash flow problem: you only need one or two larger accounts to default on payment, or to take an additional 60 or 90 days to pay, and now you've got a cash flow problem!

 

Traditionally, business owners have depended on conventional lending sources for a business Line of Credit, and this often includes short-term Bridging Finance. But there are also many people in business who've used their personal credit cards for business-related expenses. Once business owners have exhausted traditional means of funding, the process of acquiring extended financing can become a time-consuming, trying, and often impossible task.

 

Factoring

 

Fortunately, today, we have a viable and effective alternative for business owners to get through cash strapped periods, particularly during periods of expansion and business growth. This innovative form of financing is known as Factoring; it's also sometimes referred to as Asset Based Lending or Accounts Receivable Financing.

 

Factoring has become a workable and realistic solution for many businesses, particularly when cash flow is uncertain and threatens the viability, or even survival, of the business.

 

How Does Factoring Work?

 

Basically, when a business has credit-worthy accounts receivables, the factoring process provides the business with an instant cash injection on those receivables. So, sometimes, when a lender says 'no' to a business, a factoring company may say 'yes', thus offering the much needed cash injection that so many businesses require to move forward.

 

Factoring companies understand the financial needs of their trucking clients and react very quickly to provide them with the professional, personalized, hands-on attention that they require. Freight Bill Factoring is actually a very simple process: it provides a business with instant cash flow in order to satisfy its cash needs, which in turn enables the business to grow and prosper.

 

It works like this! Your company has quality accounts receivables, and needs a cash boost. A factoring company may purchase just one, or a group of your receivables, and in return will immediately give you up to 100% (less fees applicable) of the face value of these accounts. Once the customer invoice has been paid in full the balance is forwarded on. Yes, factoring costs more than other means of lending, but factoring clients believe the benefits far outweigh the costs.

 

The Benefits of Factoring

 

Possibly the greatest benefit of factoring is the short turnaround time, because factoring companies don't have a lengthy loan approval process, unlike banks and other lenders. This means that, with factoring, trucking business owners can have money in-hand by the end of the same working day!

 

In order to receive approval as a factoring customer, a trucking business must first-of-all be a reputable trucking business, and secondly, it must have credit-worthy customers. Once a business has been approved for factoring, funding will be provided on the same day. It's important to note, also, that ongoing financing is only limited by the amount of receivables available for purchase.

 

In the last decade we've seen factoring grow very quickly, and today it's become a financially feasible alternative for many trucking companies. Many trucking companies have stated that Freight Bill Factoring has made it possible for them to process orders and undertake loads from brokers that would otherwise have been impossible because of a lack of financing. Freight Bill Factoring is here to stay, and it clearly has a place in today's business environment. Because of factoring, a trucking company can expand its customer base, increase loads, and even survive a seasonal slump. Thanks to Freight Bill Factoring, many businesses have been able to expand and grow, and easily survive in what has become a very competitive industry.

 

 

 

 

 

Indianapolis Factoring Companies Articles

Medical and Healthcare Invoice Factoring

 

Don't Wait to Be Reimbursed - You Can Receive Payment Today!

 

Anyone in the healthcare profession is painfully aware that third-party payers like Medicaid, Medicare, HMOs, Workers Compensation, and other private insurers, can take what appears to be an unnecessary long time to settle your accounts. But there's good news, because with 'factoring' there'll be no more long waiting periods to receive payment on your medical receivables. For anyone in the healthcare profession who provides any type of medical services, factoring is here to assist with cash-flow.

 

Is There a Difference between Medical Factoring and Healthcare Factoring?

 

There actually is a difference between these two types of factoring, even though we hear many people using these two phrases interchangeably. Basically, when there is no third-party payer involved, then healthcare factoring applies, and if a third-party payer is involved, then medical invoice factoring companies are used.

 

Healthcare and medical receivables factoring is available for the following services -

 

- Hospitals

 

- Group and Sole Practitioners

 

- Laboratories

 

- Physical Therapy and Rehabilitation Facilities

 

- Chiropractors

 

- Nursing Homes

 

- Durable Medical Equipment (DME)

 

- Medical Staffing Companies

 

- Medical Billing Services

 

- Medical Supply Companies

 

- Medical Coding Services

 

- Ambulance Providers

 

- Medical Transportation

 

- Medical Transcription Services

 

- Medical and Non-Medical Home Healthcare Providers

 

- Imaging Facilities Providing CT Scans, X-Rays, MRIs, and so on; and

 

- Many More!

 

Factoring for Healthcare Receivables

 

We typically associate healthcare receivables with customers who are not reliant on third-party payers. This includes sectors involved with medical staffing, medical supplies, medical transcription, medical coding and billing, and so on. Basically, it means that vendors who use healthcare factoring receive the benefits of an unlimited line-of-credit, all based on the services they provide.

 

 

You can see below that factoring healthcare receivables is a very simple process -

 

 

- As the healthcare vendor, you still invoice your customer for work you've completed. Some of the more common customers will include medical offices, nursing homes, hospitals, and so on.

 

- The next step is for the vendor to forward a copy of the invoice to the healthcare factoring company. Your factor will handle the collection of payment on your behalf.

 

- The factoring company will deposit an amount of money in the range of up to 85% of the gross value of the invoice into the vendors bank account within 24 hours, or less.

 

- The remaining (approximately) 15% will be held by the factor until such time as the account has been paid in full by the customer.

 

- Once the invoice has been paid in full by the customer, the factor will release the remaining 15%, less the agreed-upon fees, back to you, the vendor.

 

Factoring for Medical Receivables

 

Regardless of whether your business bills Medicaid, Medicare, Blue Cross/Blue Shield, a third-party insurance company, or HMOs, we have the perfect factoring solution for you.

 

The benefit to you of factoring your medical claims is that you'll receive upfront capital. It's the factor who will seek payment of your invoice.You can see below that factoring medical claims is a very simple process -

 

 

- As the provider, you'll continue submitting your claim to the third-party payer.

 

- At the same time, you'll submit a copy of the paperwork to your factoring company.

 

- The factoring company will deposit an amount of money in the range of up to 85% of the net collectable value into the vendors bank account within 24 hours, or less.

 

- Once the third-party payer pays your claim in full, the factor will release the remaining 15% (approximately), less the small agreed-upon factoring fee.

 

 

 

 

Indianapolis Factoring Companies Articles

"How a Factoring Company Saved This Owner of a Trucking Company Business"

 

Transportation industry plays a vital role in the economic scene. As people's lives become more and more sophisticated as time goes by, making the most out of the limited resources is the concern of all. Say for example the proper use of land to get optimum profit and convenience or what is known as the zoning. It is defined as the process of planning for land use to allocate certain kinds of structures in certain areas. This method separates the manufacturing sites from the sources of its raw materials, the employees and employers to their respective offices. This made the transportation industry play a vital role in the economic scene. It is a primary necessity for businesses of any size and of any type. It does not just transport raw materials to the manufacturers but also bring finished products into our every door.

 

Investing in a business which plays a vital role in the current economic scene is a thing that every investor should not think twice about. But business does not work that easy. The big question is, how you are going to survive the most challenging phase of establishing a business - the start. Starting a business requires a capital. If you now have enough money for capital, you can now start your business and since you are investing in a very promising type of business, finding customers is not a problem. The problem is, what if you found bad ones. Even if your customers are also managing a business and expecting cashflow, which does not guarantee that they would pay you up to date because some businesses are just ill-managed. For the business to survive, the most important thing that you would be doing is funding your operational cost - make payrolls, fuel, maintenance - it should rely on cashflow, but since things like mentioned above is very common, some business owners would resort for a loan. But that does not solve the problem of getting your receivables paid on time. As a business owner, you cannot afford the time it takes to collect the receivables, while trying to make your business grow.

 

Mr. Paul, an owner of a small trucking company experienced the same kinds of problems and shared how he managed to survive. "I just released my head from the stress of how am I going to get my receivables, and focused on making the business grow"¦"

 

Mr. Paul just got his retirement fee from a big trucking company for almost forty years and was thinking on how to double his money in the shortest time possible. Seeing a small trucking company as a business of great potential and is a business that he knows. When he was still driving a truck, he was fascinated by how much money the company is making. He has also never experienced a delay in his salary. When he decided to invest his retirement fee in establishing a small trucking company, everything was just according to what he expected. He started with a single truck from his home. He started with just a few clients, the ones he knew already and never missed one deadline and kept freight damage as minimal as possible. Because of his outstanding services he started to get referrals and had more work than he can handle. From then, he started to expand, bought more trucks, hired more personnel. Using the knowledge he acquired from the company that he had served for a very long time, and dedication to his work, his little business grew in a rate that he had never imagined. The business is now requiring a more strategic plan and when Mr. Paul thought that everything was going very well, he encountered problems that he failed to foresee.

 

He had customers that made him wait for weeks or even months before paying. Since his little business is rapidly growing, his operational cost is also growing . This is a problem that he never knew and never observed in his entire career as a driver of a trucking company since he was never in an administration role. He was at the verge of breaking down, his business is losing money, growing too fast, not big enough has to rely cashflow to keep up to his fast growing business. He had to make his payroll, pay his suppliers, maintenance and fill his orders. Mr. Paul thought of going to bank and apply for a loan but was denied. "Maybe because I had a bad personal credit...haha"

 

Mr. Paul thought of declaring bankruptcy because of the stress that he never imagined he will be handling. He had to think of how to manage his business and at the same time, how will he keep the business alive by thinking of a solution on how is he going to deal with his receivables.

 

"You know that time, I, I, I just don't know what to do... I felt that as the business kept growing and growing, I become more and more incompetent. Then suddenly, a hero came along... Just at the nick of time. "

 

Then a close friend of his introduced him to a factoring company and everything turned out just fine. So what is this factoring company then? What does it do? How did it save Mr. Paul's business?

 

Well, this is how it works, Mr. Paul sells his invoices or receivables to a factoring company at a discount and not in an amount where he can no longer make a profit. The factoring company will then be the one collecting the invoices of Mr. Paul's business from his customers. Say for example, Paul still has 100 dollars to collect from one of his customers. He then sells it to the factoring company at a lesser price, say 90 dollars. The factoring company will now be the one who is going to get the 100 dollars collectible from Paul's customer.

 

The factoring company immediately gave Mr. Paul the cashflow he needed. He now has instant customer credit checks. He can rest well and likes doing business with companies that pay their bills on time. Save him from the stress of thinking how to deal with his collectibles, thus saving time and money. He can now focus on growing his business and keeping his customers happy. Increase his sales and cashflow.

 

The Factoring Company not just saved Mr. Paul's start-up business but made it a big company now. It has helped Mr. Paul's business, why don't you let it help yours?

 

 

 

 

 

Indianapolis Factoring Companies Articles

The benefits of using a Factoring company versus a bank loan

 

If you are looking for a convenient way to obtain business capital, factoring is one of the best options available out there. From a recent study, it has been identified that many people go for bank financing in such instances, considering that it is the least expensive method of investing. However, factoring is associated with many other advantages and we will let you know about them through this article.

 

A proper cash flow is something that every business in the present world should have. In addition, they need to speed up their cash flows along with time. Otherwise, it will not be possible for them to get banks for financing. Unfortunately, banks are not in a position to accommodate all the financial requirements of a company, due to tough credit standards. That is where factoring comes into play. It happens when a company sells its accounts receivable to a bank or a factoring company. The amount that can be taken depends on value of the invoice.

 

Key benefits associated with factoring

 

' A company can get large amounts of capital through factoring. It is because this method is entirely based upon accounts receivable. It has impressed many small scale businesses out there since they can obtain a bigger line from their accounts receivable for services or goods. They will not be able to get such a big amount of capital from any conventional bank lender out there. Factoring is something that is based on the credit strength of your potential customers. If your company has more potential customers with healthy credit strengths, you can easily enjoy the benefits of factoring.

 

' Factoring is quicker than traditional bank loans. Since most of the accounts receivable factoring lines are in a position to be set up, approved and actively funded within a matter of few weeks, you can go through a hassle free process. However, banks will take more time to engage with their credit reviewing activities about your company. They might even wait for audit results or fiscal period closes. Therefore, if you are in need of quick business capital, factoring is the number one option available out there to consider.

 

' Factoring is something that expands quickly along with the growth of your company. Almost all the factoring companies out there support it. Your company doesn't need to have an excellent track recording of business. You just need to select a factoring company that is big enough to accommodate all your business development ambitions.

 

' A factoring company does not offer loans to their clients. Therefore, you cannot find many similarities between a loan and factoring. A factoring company will purchase your accounts receivables along with cash. Therefore, it can be considered as a similar process to increasing the working capital, while showing it as a liability in the account balance sheets. This will even reduce debt in the balance sheet, when compared to borrowing. At the end of the day, your company will get the opportunity to enjoy a lower debt to equity ratio.

 

' Factoring is less expensive than equity. Most of the businesses approach equity investors to cater their financing requirements. However, there isn't any substitute for equity capital in some expansion purposes and business investments. Almost all the equity investors expect a higher return from the accounts receivable than the cost. When it comes to factoring arrangements, you won't be able to find any dilutive effect on shareholders. This will assist you a lot to stay away from hassle.

 

' Factoring is also recognized as one of the best options available to improve your turn. In the present world, many factoring companies will verify invoices with your customers and check whether they are being paid on time. This will motivate your customers to pay the invoices on time through a gentle reminder. This will result in a better service delivery from your end as well.

 

 

 

 

 

Indianapolis Factoring Companies Articles

Invoice Factoring; The Best Way to Grow a Temp Staffing Agency

 

When temp agencies are struggling with cash flow problems they typically have two options; the first option is to apply for a business loan from a bank or other lender and hope they achieve a favorable result. Their second option is to use invoice factoring, so in this post we're going to discuss why invoice factoring could be their best choice.

 

Many businesses in many varied industries are discovering that invoice factoring is the ideal way of addressing cash flow issues, and this is also true for temp staffing agencies. In fact, it may be even more true for temp staffing agencies because these agencies don't receive payment from clients until such time as their job vacancy has been filled and the selected applicant has completed a period of work. It's not surprising, then, that temp staffing agencies often struggle with cash flow issues!

 

How Factoring Can Help Temp Staffing Agencies With Cash Flow

 

Temp staffing agencies are required to use their own finances to pay for the necessary advertising in order to place their job candidates. The client is only invoiced once the temp agency has located the perfect applicant and that person has actually worked, which can involve a long period of time before being paid. And when they are paid, they're often paid on a per-hour basis, determined by the number of hours the successful applicant has worked. In the meantime, the temp staffing agency still has its own financial obligations, like rent, payroll, advertising costs, office supplies, and so on. All these expenses must be paid by their due date, which can place an agency in a short-term (sometimes long-term) financial crisis.

 

Temp Staffing Agencies Must Meet Their Own Financial Responsibilities

 

Like any other business, temp staffing agencies can't postpone their own financial obligations, so they need access to money. Rent must be paid, utilities must be paid, and their employees need to be paid on a regular basis. All business offices require supplies and money must be available to advertise job openings, so it's understandable that waiting to be approved for a bank loan may not be a practical or even feasible option. These temp staffing agencies need access to money, and the sooner the better. That's why we suggest that invoice factoring may be the ideal solution for resolving a temp staffing agency's cash flow problem.

 

How Factoring Works for Temp Staffing Agencies

 

When any business decides to negotiate an invoice factoring program to generate instant cash, the business may, in many cases, secure up to 92% of the total value of their invoices within 24 hours! Note that if this is the first time the temp staffing agency has worked with a factor it could take between four and seven days to establish a factoring program. Either way, the agency's cash flow problems will be over, and they can proceed to conduct and grow their business.

 

Many temp staffing agencies are affected by cash flow problems, sometimes only occasionally, but we strongly suggest all agencies learn about factoring and how it works, just in case the need for immediate cash should arise. Invoice factoring has become a very popular financing option for many businesses, particularly those who need an urgent cash injection. Most times, money will be advanced within 24 hours once the agency has established a relationship with a factoring company.

 

Invoice Factoring is NOT a Loan!

 

Another bonus of invoice factoring is that it's not a loan. Basically, all the temp staffing agency is doing is accessing money that's already owed and payable to them. Factoring simply provides a means for the agency to access this money when it's most needed

 

Now, temp staffing agencies don't need to approach banks and other traditional lending authorities, hoping and praying they qualify for a loan. All that's required is for the agency to provide the factoring company with copies of the invoices they wish to sell, together with time sheets for each employee. Then, within 24 hours the agency will receive a cash deposit into their bank account. No more cash crisis! The temp staffing agency will now have funds to meet their regular financial obligations without the need to take on any further debt.

 

 

 

 

 

Indianapolis Factoring Companies Articles

Healthcare Staffing Factoring

 

The healthcare field is arguably one of the most rapidly growing industries in the United States. With the baby boomers, the largest section of our population, reaching retirement age the need for expanding healthcare services has never been more pronounced.

 

At the center of this growth are healthcare staffing agencies that hire for hospitals, clinics, doctor's offices and a wide range of medical facilities. However, while business is booming the ability for these staffing agencies to expand is inhibited by the customer invoice system. Fortunately, there are healthcare staffing factoring companies around to help them in their time of need.

 

We asked the owner of a local healthcare staffing agency, Joy Reed, to talk to us about how factoring companies helped expand her business and provide a much needed boost at a critical time for her company.

 

"Hello Joy and welcome. I was hoping you would tell us a little about how healthcare staffing factoring companies helped your business, but I suppose we should begin by how you got started in this business?"

 

Joy Reed (JR), "Thanks for having me. I actually have been a part of several start-up businesses in my recent career and was looking for a field that would show a lot of promise. It was pretty clear to me that medical staffing was a big need in the healthcare field so I set about to start my own business. I had experience in starting up businesses before, so I drew up a business plan, took out a loan, rented the offices and hired a staff to get started."

 

"So, you did what most people do in starting up a business. How did it do?"JR: "I actually got off to a pretty good start. I had made a few contacts and managed to get some business right away. This was really helpful because as you might know our clients use invoices for payments and it can take up to 90 days before we actually get the cash in hand. Around four months in we were facing a real crossroads as new opportunities opened up for our business, but we didn't have the cash on hand to take advantage."

 

"I'm a little confused. You say you were doing well, but you didn't have the ability to expand your business?"

 

JR: "That's right. The problem was back to the invoices that were making up wait up to 3 months before we had the cash. I really wanted to expand my staffing business to handle the new opportunities I was being presented, but I couldn't because I was still waiting on the invoices to finally turn to cash. So I was asking my accountant about what could be done when the suggestion of a healthcare staffing factoring company was introduced."

 

"Tell us a bit more about factoring companies."

 

JR: "Basically, factoring companies purchase the invoices right on the spot so you can have cash on hand immediately instead of waiting up to three months. For healthcare staffing factoring companies, they will then collect the money from the business when the invoice is read to be fully paid. It really worked out for me because I was able to get cash quickly to add new personnel and even expand my offices to include another section of the building I was renting in."

 

"I understand that factoring companies are there for many different kinds of businesses, including medical staffing. Was it difficult to get set up with a factoring company?"

 

JR: Actually, it was pretty easy once we found a company that met our needs. I just filled out a short form and they looked over a few of the invoices I had to see what companies that I worked with. It really didn't take long at all before they agreed to cash some of the invoices and I got the money I needed to expand."

 

"Could you tell me a little more about the advantages of using a factoring company like this?"

 

JR: "Sure, I was not only able to hire a couple of new people and rent additional space, I've been able to cash my invoices when unexpected bills come up or if I need to make a purchase quickly for a new piece of equipment. This has come in really handy recently when I decided to move to a new location and needed some cash on hand to make the transition. The factoring services are really quite good with reasonable rates and fast service."

 

"What's the differences in using factoring companies over getting a new loan?"

 

JR: "It is frankly much better than getting a loan because with factoring there is nothing to pay back. We are basically getting our own money from the invoices we've earned up front and paying only a small fee. With a loan, I would not only have to pay it back but with interest as well. Factoring for us has really been a godsend when it comes to making decisions about how to expand my business. I'm no longer tied down to waiting 2 to 3 months to get paid when I can take what my business has earned and get cash immediately."

 

"I take it that you are happy with how healthcare staffing factoring has worked out for you?"

 

JR: "You would be correct. I cannot imagine how my business would have expanded at that critical time without factoring companies to buy my invoices. This is a great service that has helped me in my time of need and now my medical staffing business is bigger than ever. I'd recommend factoring companies to anyone running a business that relies on invoices if they need to get cash quickly."

 

There is little doubt that Joy Reed has been quite happy about the services she received working with a factoring company. Perhaps factoring is right for you and your needs, be sure to search for the type of factoring business that works in your field so that you can get the right services in helping your company to succeed.

 

 

 

 

 

Indianapolis Factoring Companies Articles

Bookkeeping Mistakes Commonly Made by Freight Brokers

 

It's true that freight brokers shoulder a lot of responsibility; from matching shippers and carriers, to ensuring that each and every piece of cargo arrives at its proper destination. Freight brokers also have the added responsibility of accurate bookkeeping, because failure to prioritize bookkeeping can result in the loss of money.

 

Below we've listed some common bookkeeping mistakes made by freight brokers, and how to avoid them-

 

Handling the Accounting In-House

 

Many business owners try to save money by handling the books themselves, or perhaps delegating this very important task to a family member or an inexperienced employee. Sure, you may save time and money initially, but errors can be costly: when you attempt DIY accounting you could well end up with more expensive financing terms, higher bond premiums, or a number of other unforeseen expenses. It's very important that you hire a competent bookkeeper because, not only will you save money, but you'll know that the job will be done accurately, quicker, and more efficiently.

 

We understand only too well that running any business is time-consuming and hard work, and many freight brokers are simply too busy doing their day-to-day tasks to focus on bookkeeping tasks, such as the monthly reconciliation of credit card accounts and bank accounts. It's through reconciling statements that you get a clear idea of how much credit or cash you actually have, and you can also pick up on any errors that may have occurred.

 

It can be so tempting to postpone this rather tedious task, but the truth is that your credit card statements and bank statements must be reconciled every month, preferably the moment each statement becomes available. In this way you'll be able to identify any potential problems in a timely manner; problems such as lost checks, missing deposits, fraudulent charges, and so on.

 

Failing to Track Invoices and Receivables

 

You're not going to get paid if you're using poor accounting practices with your accounts receivable. Let's face it, getting paid equals cash, and cash is the lifeblood of every business. An experienced freight broker understands that your cash flow can be strained by the delay between when you pay your carriers and when you receive payment from your customers. If you're finding that tracking and collecting invoices is taking too long, why not consider invoice factoring? An invoice factoring company will purchase your invoices for a small fee, with the bonus being that you get paid immediately, plus you're spared the time and expense of having to deal with collections.

 

Don't Forget Liabilities

 

One of the major considerations a surety has when looking at your business financials in order to underwrite a bond is whether you have sufficient assets to cover your liabilities. Many times we see an inexperienced bookkeeper recording a liability, but when the payment is made they forget to reverse the liability. This is a serious error because it results in liabilities being overstated and net income being understated, which makes your business appear to be less financially secure than it really is. These serious errors can be avoided by employing the services of an experienced bookkeeper. We also recommend that you have another set of eyes (which may be an owner or a CPA) regularly review the balance sheet to check for unusual account balances

 

Too Many Expense Categories

 

Another common error we often see with inexperienced bookkeepers is creating too many expense categories, or miscategorizing expenses. Generally, most industries and businesses have a standard set of expense categories, and when a loan underwriter or surety sees too many categories, or the miscategorizing of expenses, it stands out like a big red flag. It tells them that your books are not well prepared. Use an accountant or experienced bookkeeper to correctly set up your accounting software right from the beginning, and don't automatically add new expense categories unless careful consideration has been made. Remember to ask your accountant or CPA for advice, because they'll be able to guide you on how to classify expenses.

 

Incomplete Information on Invoices

 

It's very important that, when you invoice your customers, you provide sufficient detail on each line item. Do you invoice by weight, per piece, or per mile? Or is the charge a flat fee? If there are additional charges to invoice, such as reimbursements for fuel or fees, these should be listed as separate line items. In addition, these charges must be clearly and accurately detailed in order to avoid any confusion. When you send invoices to your customers that include clear and concise details, it prevents pushback from your clients. If there's missing information on your invoices and your customers are confused by unrecognizable charges, it could well cause a delay in payment, which is the very last thing business owners need.

 

Not Understanding the Functionality of Accounting Software

 

Many freight brokers purchase an accounting software package because they're anxious to get their business up and running, but they fail to learn how to use it correctly. This is probably not an issue if you're already outsourcing your accounting and bookkeeping tasks; but if you're using this software in any way at all, perhaps to enter checks and run reports, it's important that you spend some time learning how to use all the available functions. When used correctly, the right accounting software can save you a lot of time, in addition to providing real-time information on the state of your business. It's this information that helps you make important business decisions!

 

 

 

 

 

 

Indianapolis Factoring Companies Articles

How Factoring Saved A Staffing Agency

 

The Bellosa Temporary & Permanent Hiring Agency has been experiencing a major uptick in business since the unemployment crisis began. The unemployed and underemployed workers have been keeping the phones ringing. The staffing agency is also fielding a lot of calls from employers too, looking for just the right hire. Company President and Vice President, Laurie Bell and Ted Stevens, have not experienced a boom in business since they first opened the doors in 2009, during the recession. They had an idea then that this would be a profitable venture.

 

The mantra that Laurie and Ted live by is that there "s always going to be people searching for work and of course employers will always be on the lookout for good workers. This is especially true in healthcare staffing, the industry they specialize in. This seemed to be a safe bet for them as they embarked on this venture, but with any small business, the only way to keep the doors open is to keep pressing forward and out perform the competition.

 

In a relatively short period of time Laurie and Ted had built a nice sized business, they were able to hit the ground running with some brilliant marketing programs and a number of contracts from insiders. They grew rapidly, the timing couldn "t have been better and they were very lucky in this aspect. By the fall of 2011 Laurie and Ted had weathered some ups and downs but they did have some solid clients like a few big insurance companies and a university hospital close by. These clients always paid their invoices on time. But they did start to notice a decrease in accounts receivables from some smaller clients such as rehab centers and private practices.

 

As winter approached they recalled previous winters and holiday seasons and realized that accounts receivables usually did slow down during this time. Laurie and Ted made the decision to delay their late payments until after the New Year. This plan didn "t really appeal to them as it "s no way to start a New Year, but they seemed to have no other options.

 

When New Year "s had come and gone they realized that their Accounts Receivables had gone from 30 days past due to 60 days past due. Before meeting with their accountant Scott, they "d decided something had to be done, but they didn "t know what.

 

Sitting in the conference room with Scott they listened as pulled all the figures up on his iPad saying,Okay you two, I "ve been looking over the files you sent over and I can certainly see why you "re worried about your late A/Rs but there may be a way to fix this. Do either of you know what factoring is? Scott inquired.

 

Laurie and Ted looked at each other quizzically, and then Laurie said I think it rings a bell, but I "m not really sure. Can you explain it?

 

Scott began laying out the details, You are sitting on a pile of invoices that are past due. The more time that goes by without them being paid, the bigger the bind this puts your business in. It makes it very difficult for you to grow, much less hire anyone new. If you don "t have enough cash coming in . 

 

Ted interrupted with, Then it could make it difficult to take on any new business because we wouldn "t be able to hire the additional personnel we need and meet our weekly payroll. We need an inflow of cash and we really can "t wait. If we have to wait any longer on these invoices we "ll be in trouble.

 

Scott jumped in saying, And this is precisely why I wanted to discuss factoring with you. The factoring company will purchase the invoices you are sitting on that are up to 3 months late, which gives you the cash you need now. He then showed him a chart on a piece of paper he placed in front of them.

 

Laurie began to carefully scrutinize it asking, Is this the fee schedule?

 

Scott answered, Yes it "s all right there. The factoring company makes 1% to 3% of the total amount of each invoice they purchase.

 

That "s sounds like a good deal to me, Ted said.

 

The three of them sat there and talked this over for a while and then Laurie and Ted made the decision to go forward realizing this was the best way to keep them afloat. They knew if they couldn "t accommodate all the new clients they were acquiring the competition would get them and they would go down, they could just not afford to turn any business away.

 

They now needed to fill out an application and submit it to the factoring company and they also needed to show them a few back invoices, undergo a credit check for their company. Credit checks would also need to be done on the companies owing the debts that the factoring company would be purchasing.

 

It didn "t take long for Bellosa "s credit to be approved and the creditors " as well. Before long the factoring company purchased the overdue invoices and Laurie and Ted got the influx of cash they needed to cover things and allow them to continue growing their business.

 

The next time Laurie and Ted met with their accountant Scott, there were smiles all around.Scott said, I "ve taken a look at your books so I know that factoring was the right solution for you.

 

It worked perfectly, Laurie stated and went on to say, The tiny amount we paid out for this influx of cash was certainly worth it.

 

Ted chimed in with, Without a doubt! Whatever the fees were we made back and more since we were now able to hire more personnel so we could take on more business. It worked out for us and for them I would say!

 

That "s what "s great about factoring! Scott exclaimed with a look of satisfaction on his face.

 

 

 

 

Indianapolis Factoring Companies Articles

Medical Invoice Factoring: A Viable Financing Option for Healthcare Professionals

 

Many healthcare professionals will attest to the fact that qualifying for a business loan or commercial line of credit is becoming harder and harder. Fortunately, there is a viable option, and it's known as Medical Factoring. Medical factoring is available for all types of healthcare businesses, including medical practices, and is the ideal financing option for businesses experiencing cash flow problems.

 

The Challenges Faced by the Healthcare Industry

 

Generally, the healthcare industry has excellent growth prospects and is quite resilient to economic turbulence, but it's also an industry facing more financial challenges than ever before. In years gone by, healthcare professionals, medical facilities, and medical suppliers found it reasonably easy to manage their cash flow, but today Medicaid, Medicare, and private insurance companies have laid down strict guidelines for reimbursement, including onerous documentation and billing requirements, so-much-so that businesses not only receive less money, but must wait longer to receive it.

 

This situation can, and does, create financial issues for many medical providers who, while dealing with increasing operating expenses, salaries, and benefits, must also accept less and wait longer to receive their money. In many cases, the health provider's long-term viability is placed in jeopardy, and because of cash flow problems the business is unable to pursue new opportunities for growth. A physician running a relatively small practice could well have $1 million tied up in receivables!

 

The Problem with Bank Loans

 

When any business confronts a cash flow crisis their first port of call is usually a bank or other commercial lender, and a Line of Credit or business loan can certainly help in the short term; however, neither will permanently solve the problem and are therefore not optimal financing solutions. Bank loans are more suited to large fixed capital purchases, but they're not designed to cover short-term recurring business expenses. On the other hand, a Line of Credit is somewhat better, but because they have credit limits and fixed terms they're not able to provide the assurance a business needs of an unlimited, renewable source of business capital. Once the credit limit has been reached or the term of credit line ends, the lender has the right to not renew or increase the credit limit. And, unfortunately, this is the situation that many healthcare professionals find themselves in today.

 

The Perfect Medical Financing Solution

 

So, what's the ideal solution for medical financing? The perfect solution would be one that's flexible enough to grow and expand with the healthcare business; one where the business owner is not required to re-apply to a bank or other lender for credit limit increases. The ideal solution would provide a reliable and steady source of working capital, capable of financing both the current and future operations of the business.

 

Medical Factoring

 

Fortunately, there is a solution for healthcare professionals, and it's known as Medical Factoring. Medical Factoring, or Medical Receivables Factoring is an area of receivables factoring that deals exclusively with accounts that are medical in nature. Due to the fact that many healthcare receivables are either reduced or denied by insurance providers, and because of the expertise required to manage the claims process, factoring companies who factor medical receivables face significant challenges, so-much-so that it's almost a necessity for these companies to specialize in medical factoring. In fact, there are many factoring companies out there that do nothing else!

 

What Types of Business Use Medical Factoring?

 

Factoring has been around for hundreds of years and many industries have discovered the benefits of invoice factoring. However, many medical service providers are completely unaware of the existence of factoring and therefore don't realize that it's one of the most flexible and powerful business financing tools available today. Almost any healthcare provider can benefit from Medical Factoring, including -

 

- Medical Centers and Hospitals;
- Physicians - General Practitioners and Specialists;
- Outpatient Facilities and Clinics;
- Medical Staffing Services;
- Medical Labs;
- Dialysis Facilities;
- Physical Therapy Groups and Clinics;
- Rehabilitation Centers;
- Home Healthcare Providers;
- Providers of Durable Medical Equipment.

 

The Benefits of Medical Factoring

 

The benefits of medical factoring are many, and are similar to those enjoyed by businesses in other industries. They include -

 

- Fast payment;
- Consistent cash flow;
- Outsourced accounting and invoice collection;
- An increase in percentage of billings collected;
- Working capital finance that's debt free;
- Building business credit.

 

Medical Practices

 

Receivables Factoring offers medical practices an excellent financing alternative to loans: the medical practice will have consistent and flexible financing tied directly to its insurance claims. This means that the amount of available financing increases as more claims are filed. Having a reliable cash flow in a growing medical practice ensures that there will always be sufficient liquid business capital to cover expenses.

 

Medical Supply Companies

 

In the same way, medical factoring offers medical supply companies quick and predictable business financing, directly tied to the volume of sales. The amount of financing grows as sales grow, automatically providing the working capital needed to both operate and grow the business.

 

Generally, medical factoring is particularly well suited for smaller medical offices. Because your chosen factoring company will be handling most of the administrative work involved in collections and claims processing, overhead expenses and office staffing can be kept at a minimum, thus allowing you to focus on what you do best - delivering the best medical care possible!

 

If you have a small practice with good growth prospects, but you also have slow cash flow, then you'll soon discover that medical factoring could well be the ideal financing tool to help you finance the growth of your business. It's true that most factoring companies have minimums, but there are factoring companies out there who will finance an office billing as little as $50,000 per month.

 

How Medical Receivables Factoring Works

 

Medical Factoring is quite simple: Basically, medical factoring accelerates payments for any healthcare business that depends on third-party payors. This means that within days of the initial billing (instead of weeks) most of the business's billed amount will be deposited directly into that business's bank account, thus drastically shortening the collection cycle and eliminating the constant headache of cash flow problems.

 

The added bonus of medical factoring is that it's not a loan, and as such, has no impact whatsoever on the business's balance sheet. There are no arbitrary limits, no credit limits, and no stringent financial requirements. The healthcare professional can factor as much of the billing as is generated by the business, thus making factoring the ideal financing tool for business growth.

 

How to Create a Factoring Program

 

Setting up a factoring program will typically take a couple of weeks at most. Obviously, the factoring company will need reassurance that the third-party payors are reliable and that their clients' practices are stable. However, once the factoring program has been established, medical financing is predictable and continuous. Claims will typically be funded within 48 hours after being submitted to the medical factoring company.

 

The Factoring Process

 

Medical Factoring is a very simple process -

 

- Periodically, your practice submits billings to Medicare, Medicaid, and insurance companies (note that certain medical factoring companies will do this for you), with copies forwarded to your factoring company;
- Within 48 hoursthe advance, or up to 85% of net collectables, will be deposited into your business bank account. The balance will be held in reserve to settle billing discrepancies;
- The factoring fee will be collected once a factoring company has been paid, with the balance of the billings being remitted to you. The fee charged by the medical factoring company will vary according to the size and types of claims generated by the practice.

 

The Future of Medical Factoring

 

It's true that medical factoring covers a relatively small portion of factoring activity overall; however, more healthcare professionals are learning about factoring and, today, we're seeing an increase in interest in medical factoring throughout the healthcare industry. As the benefits of this type of medical financing become more widely known, it's anticipated that medical receivables factoring will become more widely used.

 

Medical factoring provides a short-term solution for shortfalls in working capital financing, plus a long-term solution for medical financing and patient accounting support, and it's for these reasons that medical factoring as a financing tool deserves careful consideration by healthcare businesses.

 

 

 

You Can Find More Information at  https://expressbusinesscapital.com
and at freightbills.org

Call Us Today at: 1-866-593-2195

 

Watch our Factoring Company Video below to see how we work for you.

 

 


 

Get MONEY NOW for your outstanding invoices.

 

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