In particular, credit unions, community development financial institutions (CDFIs), lenders and Micro Enterprise Accounts Receivable Factoring all said yes to most of their applications for funding small businesses, while most of the big banks repeatedly said NO .
Even if a homeowner health agency may be approved for funding by the lenders of the above alternatives, the best alternative financing solution for them is to work with a factor of home care, and here's why:
1. Factoring Health Care Home Create positive cash flow
Some Medicaid waiver programs may take up to a month to reimburse an agency for its pre-approved non-medical home care services. This delay in payments makes it difficult for agencies of new or growing to be able to meet salaries and other financial obligations. However, when the owners of the Medicaid agencies to sell their receivables to a nursing home funding company, the funds may be deposited directly into their bank account within hours. Instead of waiting weeks or months, factoring your company provides home assistance to business owners immediate access to cash.
2. Factoring Home Health Care helps eliminate overhead
In addition to providing capital, home health factors provide processing services for invoices, which include the following: send invoices to a computer, depositing checks, recording payments, following up on overdue invoices and presenting coherent relationships. The owners of the Agency may significantly reduce general expenses associated with processing invoices and eliminate the overhead cost of handling collections when working with a company factoring. In addition, owners of the agencies can use the time spent on collections, administration, accounting, talking with banks, etc. to focus on marketing, sales and other business activities in growth.
3. Factoring receivables Medicaid helps home health care agencies Building Credit
As discussed previously, factoring provides home health care agency owners with an adequate cash flow. This new found access to capital owners to provide the agency the ability to pay its suppliers on time, helping them to establish a good credit rating. Having good credit will be easier for suppliers and other financial institutions to extend credit to the agency in the future. In addition, home health care agencies, factoring allows owners to take advantage of early payment discounts. For example, some manufacturers offer a two percent discount if a home health care agency owner pays his debts within ten days. This savings can then be used to offset the cost of factoring.
Eventually, the big banks will start lending again. Meanwhile, home healthcare factoring is a great option for financing alternatives for agency owners to use. In particular, financing of health care home generates a positive cash flow, eliminates the cost of health and contributes to the owners of the home care agencies to build credit.
Source: http://EzineArticles.com/6828747
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