Ozarks Capital Funding

Working capital lines of credit have been hard to acquire in 2009.  Many lenders expect a minimum credit score of 700 from borrowers.  The reality is that many doctors, because of divorce, high credit card balances and other factors, don’t have good credit.  Medical invoice factoring allows such practitioners to create an infusion of working capital because credit scores aren’t an issue.

Healthcare accounts receivable financing involves the amounts owed by third party payers such as insurance companies, Medicare, Medicaid, and state sponsored funding programs.    The medical factoring company advances up to 85% of the expected net collectible amounts from each billing.   The remaining amount, called the reserve, is remitted back to the provider upon collection of the receivable.

The expected net collectible amount is determined at the onset of the factoring relationship.  The healthcare factoring company conducts an audit in which billing and collections history is analyzed.   An historical percentage of actual collections compared to the gross billings is typically used as the future expected net collectible amount utilized to calculate advances.

Are you a medical provider in need of working capital?  Check out our easy online application to get started.