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Medical factoring is no longer a new phenomenon in the healthcare industry, with most businesses turning to this financing solution to keep their operations running. But with the current increment of factoring companies in the market, getting a suitable option may prove challenging. Below, we take you through various steps of choosing the right factoring company.

Build a Candidate List

The first step in choosing the right medical factoring company is searching for your preferred candidates and building a list. There are many avenues for identifying your preferred candidates, with the internet serving as the first option. You can also ask your colleagues to make recommendations, which word of mouth leads to often making the best referrals.

Evaluate Your Candidates

After building a list of your top candidates, you can now proceed to evaluate each company. Here, you can consider factors such as:

Their Areas of Specialization

Some medical factoring companies will specialize in specific areas such as diagnostic imaging centers, while others will choose to focus on general medical facilities. Your preferred choice should ideally be conversant with your area of practice, whether they are specific or generalist factoring companies.

How Long Have They Been In Business?

The most suitable factoring company should have at least a few years of experience, as these allow them to understand how various financing processes work. New companies should still not be written off. For this, consider asking how they are funded, whether from lines of credit, investment, or hedge funds.

Their Opportunity Size and Audit Services

Various medical factoring facilities will have their preferred choice of funding opportunity, with most falling between the $50,000-$5,000,000 ranges. Before settling for your factoring company, ask for the specific funds that they are willing to advance. In addition to this, ask if your factoring company provides audit services to help you gauge any additional costs that you will likely incur.

Do They Work With Medicare/Medicaid?

While numerous conventional insurance companies are easy to work with, some factoring companies may have restrictions on working with Medicare/Medicaid. Make sure that your factor can work with these insurances as these often require specific processes to finance their claims.

Compare the Best Proposals

Based on the above factors, you can then narrow down your candidate list. Determine the average cost per dollar for each company, after which you should also consider aspects such as whether they provide helpful information and if you feel comfortable working with them.

Select Your Top Pick

Once you have determined your top proposals, you can now select the company that offers the most competitive program.

If you need a medical factoring solution that offers affordable and customized solutions, consider reaching out to Lode Capital today.