Home Healthcare Factoring: The Right Funding Solution for Your Home Healthcare Agency

If you answered ‘yes’ to one or all of the questions above, then home healthcare agency invoice financing is by far the best funding option for your business. Allow me to elaborate…

Home healthcare invoice funding is the conversion of accounts receivable into cash by selling outstanding invoices to a factoring firm. Home healthcare agency financing is a viable financial solution that gives companies immediate cash to manage operations more efficiently. Home care agency owners can then use liquid capital to make payroll, pay taxes and meet other recurring financial obligations.

Here are some additional key concepts about this alternative form of home healthcare agency funding:

  • Home healthcare factoring is an excellent long or short-term financing solution for small and mid-sized agencies. Some factoring companies will require a 1 or 2-year funding commitment, but there are many that will factor invoices without a termed contract.
  • Even though a factor might review your personal and/or business credit as part of its due diligence procedures, home health care invoice funding decisions are predominantly based on your customer's credibility, not yours.
  • Home healthcare invoice financing is not the same thing as a business loan. No debt is created, so your balance sheet remains clean. Moreover, home healthcare agencies can receive cash without providing personal collateral or accruing interest.
  • Factoring fees and advance rates are clear and objective—both are based on the size of your invoices, how long it takes to be paid, and the creditworthiness of your customers.
  • Invoice funding helps build your company’s credit. With a stabilized cash flow, your home healthcare agency can use money from factoring to clean up debts as well as pay overhead, payroll and invoices. Being able to do these things will only improve your credit history and make it easier to obtain credit from vendors and other financial institutions in the future.
When you sell your receivables to a home healthcare factoring company, you can maintain a balanced and healthy cash flow, while simultaneously building your credit. In essence, you can solve your home healthcare company’s cash flow problems, giving your company both the time and money to focus on more crucial success factors.

Author:.

PRN Funding, LLC is an extraordinarily focused niche player in the healthcare invoice funding market place. Through a process known as factoring, PRN Funding provides business owners with the financial resources needed to grow and effectively compete in the industry. With no minimums or fixed terms, PRN Funding (www.prnfunding.com) provides healthcare companies with flexible and immediate access to capital.

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