One of the most frustrating aspects of being involved in a healthcare facility is trying to secure sufficient levels of working capital to meet your current outstanding financial liabilities, whilst at the same time, leaving a sufficient amount that the facility can also grow, expand and develop should such an opportunity present itself. Unfortunately, many business finance options are problematic in that they provide a limited benefit, and oftentimes, with a great deal of strings and inhibiting conditions imposed on them.
Take for example, one of the most commonly relied upon methods of securing additional financial aid for a business: a loan. Here, the business will receive a sum of money that the lender is happy to lend them, rather than what the business actually needs or wants. In exchange for providing a loan, the lender will require that the borrower ensures that they pay the capital sum and interest repayments on time.
This can be problematic in times when the cash flow of the healthcare facility is reduced, because should the borrower not be able to adhere to the terms of the loan, the borrower may serve a notice of default with a view of seizing the assets secured under the terms of the loan.
Furthermore, loans can be very costly by virtue of the fact that they have interest fees levied on them. The interest charged is charged in conjunction to the capital sum and so the payment of the interest will not diminish the capital sum any. The reason this is a concern is due to the fact that the business will effectively be spending money that does not actually provide them with any sort of tangible benefit, such as increasing sales, raising the profile of the company, or aiding in the purchase of supplies.
With all of that in mind then, a healthcare facility operator may wish to give some serious consideration to the usage of medical receivable financing in an attempt to ensure that they get the requisite amount of working capital they require, and in a shorter period of time than they would need to wait for a loan.
One of the great benefits of medical receivable financing is that because medical receivable financing is directly connected to, and contingent upon the volume of sales of the healthcare facility, this means that as the business grows, so too does the amount of money the company can use. This in turn helps to maintain a positive cycle of self-promoting growth and overall efficiency within the business which can only ever be a positive result.
With this method of financing, the clinicians will be able to focus exclusively on what they do best: providing quality healthcare for their patients. Without having to divide their time and energy on the chasing up of unpaid bills and account, this in turn will ensure that customer satisfaction is boosted which will hopefully then foster an increase in goodwill, and the publicity of the company as a whole.
RW has been performing SEO and website consulting online since 1997, and specializes in assisting companies in achieving top rankings online. Visit RW’s corporate page at www.FreedmanLane.com. For more information regarding medical receivable financing please visit www.accountsreceivableloans.com.