As Your Business Grows,We Deliver the FUNDS

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Is your business growing faster than your operating capital?

Factoring Finance And Lending for Medical Providers Billing Medicare

Why Choose Us? Accounts Receivable Financing is our Business
  • Financing Rates at 0.69% - 1.59%
  • No Financials - No monthly minimums - No invoice minimums
  • No facility fees - No audits - No up-front fees - No hidden fees
  • Set up account in 3 to 5 working days - 24 hr funding thereafter
  • Credit Lines starting at $5,000 & up to 10 million
  • Customer referrals upon your request
  • We Make Same Day Decisions
Over 15 years in business
Click Here for a Quote

Call Now 1 800 876 6071

What is Medical Accounts Receivable Financing?

Medical receivable financing, also known as Medical Factoring is a means by which the healthcare provider is granted an asset based credit line that is based on the net realized value for his/her billings to third-party payors (i.e. commercial insurance companies, HMO’s, Blue Cross-Blue Shield, Medicare and Medicaid).

For medical providers that have accounts receivable with a net realized value (NRV) of $500,000 or less, we offer our medical factoring program which is a funding program that purchases your billings (net realized value) at a discount. Clients that exceed $500,000 in accounts receivable (NRV) and meet our criteria for financing will be proposed an asset based receivable financing program that is priced at a prime plus schedule.

1st Commercial Credit provides medical receivable funding for two types of medical provider clients.

If you own a medical business that invoices to commercial accounts (Not Third Party or Individuals) then we consider your receivables to fall under the ordinary accounts receivable finance program.

If your company invoices Medicare or Medicaid, or state government receivables with Hippa covenants, then you fall under our Medical Provider Receivable Finance Program.

1st Commercial Credit realizes that a successful healthcare practice depends as much upon effective financial management as it does on quality care. For this reason, an increasing number of healthcare providers are looking for finance companies that can help them handle their cash flow requirements. 1st Commercial Credit can facilitate financial funding of medical receivables and has a well seasoned staff that was created specifically to handle this unique financial niche.

Receivable Finance Solutions for the Healthcare Industry

The long delay between the time you perform a medical service and the time you are ultimately paid, coupled with a bureaucratic and very cumbersome third-party billing structure has resulted in diminishing your business cash flow. Our mission is to provide capital to a nationwide network of healthcare providers including, but not limited to sole practice physicians, group practice physicians, nursing homes, hospitals, home healthcare companies, rehabilitation -physical therapy companies, durable medical equipment providers, MRI, radiology centers, ambulance service providers and laboratories. While many industries are very familiar with the use of accounts receivable financing to improve the consistency of their cash flow and increase their bottom line, the overwhelming majority of health care providers have never heard about this service, and do not realize what accounts receivable financing can do for them.

Our Clients:

  • Too new to obtain bank financing (under 3 years old)
  • Needs accounts receivable financing for payroll
  • Needs expansion and/or working capital
  • Needs acquisition financing
  • Growth strategies, including new facilities
  • Restructurings, DIP and post -bankruptcy financing
Asset Based Revolving Line of Credit Terms

Minimum of $500,000 of eligible receivables based at NRV. Receivables must be payable by Commercial Insurance companies, Medicare-Medicaid, Blue Cross-Blue Shield, HMO-PPO, Municipalities and Institutions aged no more than 150 days from the service date. Terms are 1 year minimum. Rates and fees may be fixed fee financing or prime based. Typical 4 to 6 weeks from receipt of initial underwriting package.

Mainstream Accounts Receivable

The "mainstream" types of accounts receivable that we will consider for funding are accounts receivable which are generated by a healthcare service company and are due from third party payors which include the following payor categories: Medicare, Medicaid, Commercial Insurance, Private Insurance, HMO/PPO, and Managed Care. The average time to collections for most of the Accounts Receivable that we fund range from 90 - 150 days (we will also consider receivables which collect in longer time periods). Request a proposal online

Accounts Receivable Which Are Non-Mainstream, But Are Acceptable:

We will also consider funding accounts receivable whereby the payors are actually healthcare facilities themselves, such as a nursing home or a hospital, whereby the healthcare provider client is contracting to provide its services to the healthcare facility. Other types of accounts receivable that we will consider funding on a case by case basis may include the following: non-litigation worker's compensation. Request a proposal online

Accounts Receivable Which Are Not Acceptable for Funding:

We presently do not fund accounts receivable that are owed by patients directly (also known as self-pay). In addition, we do not fund certain types of longer turning worker's compensation, personal injury, or no-fault accounts receivable.

Receivables Financing for Healthcare Providers -  A Quick Cash Flow Solution!

Receivables based financing has become a popular solution for this type of industry. It establishes an unlimited credit line that is solely based on the net realized value (NRV) of the accounts receivable. The credit line grows proportionately as the eligible receivables increase and the initial funding can take place in as little as two to three weeks. 

How does receivables based financing work for healthcare providers?

A typical example of how receivable finance works with healthcare providers is as follows:

An ambulatory surgical center has 6 months in business, self-financed until now or has a small loan at the bank. The majority of its receivables are paid by commercial insurance companies that pay in 90 to 120 days and Medicare/Medicaid reimbursements that collect within 30 to 60 days.

Due to the rapid growth and success of the business, the principles find themselves short of liquidity and unpredictable cash flow for ongoing financial obligations. The principles must find a fast and flexible way to convert the receivables to cash flow in order to continue daily operations.

Why Choose Us? Accounts Receivable Financing is our Business
  • Financing Rates at 0.69% - 1.59%
  • No Financials - No monthly minimums - No invoice minimums
  • No facility fees - No audits - No up-front fees - No hidden fees
  • Set up account in 3 to 5 working days - 24 hr funding thereafter
  • Credit Lines starting at $5,000 & up to 10 million
  • Customer referrals upon your request
  • We Make Same Day Decisions
Over 15 years in business
Click Here for a Quote

Call Now 1 800 876 6071

What is usually required in obtaining healthcare receivables based financing?

Factoring companies or asset based finance companies that specialize in healthcare receivable financing will base their decisions on several factors and may vary from lender to lender. The first thing that needs to be evaluated is the net realized value (NRV) of the receivables. The primary reason for this evaluation is to determine the quality of the receivables that are going to be considered for the “funding base”, also know as the borrowing base. Ineligible items such as private copay receivables, contractual reserves, and receivables past 180 days will not be considered and will be excluded from the funding base. This evaluation will determine the advance rate.

The second thing is to conduct a third party payer analysis and compliance review. Since the factoring company or asset based lender is going to collateralize on the receivables, this review will identify clinical liability issues that expose the client and the finance company regarding the receivables (Collateral). Verification of proper and current licensing, a review of current surveys and frequency of payment for each payer class will be evaluated.

And last, "financial statements". Factoring companies are usually more liberal and flexible than asset based lenders due to the nature of the collateral that will be encumbered. Asset based lending institutions will be more diligent and base their funding decision on a good balance sheet, proof of profitability, and reviews mentioned above. Factoring companies are more concerned with the quality of eligible receivables and competency within the clients billing department. Funding decisions are not based heavily on a balance sheet that may show major fluctuations but so long as it can provide proof of profitability, the factoring company may still go forward with funding the client.

Healthcare providers are considering receivables financing as a viable option in funding their growth. The demand for this type of service is much needed within the Healthcare industry. Receivable based financing creates predictable cash flow in an unpredictable payment cycle industry.

Frequently asked questions about our healthcare provider financing program?

Q: What kind of medical practice/business do you fund? A: We specialize in providing capital to healthcare providers nationwide including doctors, medical practices, nursing homes, hospitals, home healthcare companies, rehab clinics, durable medical equipment providers, MRI and radiology centers, ambulance service providers, laboratories and others with receivables payable by Medicare, Medicaid, HMO's, and private insurance.

Q: Do you fund chiropractor clinics? No, nor certain types of longer turning worker's compensation, personal injury, or no-fault accounts receivable.

Q: Do you fund self-pay receivables? A: No.

Q: How do you determine what the Net Realized Value (NRV) of the receivables are? A: We must do an audit and calculate the average percentage of collectible receivables within recent months, usually 4 to 6 months of collectible history to establish your NRV.

Q: Do you provide a billing and collection service with the receivable finance program? A: Yes, we now offer billing and collections aside from the financing. Each service stands on its own, if you no longer need the financing, you can stay with the billing and collections service or vice versa. We will have a vested interest in your success and by offering a billing and collections service, we feel that your business will be more efficient and successful.

Q: Do you have a minimum time that the program has to be in place? A: Yes, At least one year.

Q: How does my billing company or our in house office send you what we electronically uploaded for billing?  A: We supply the integration that makes a file copy of your uploads and forwards the exact information to us. This can be explained with more detail.

Q: I understand that Medicare/Medicaid receivables are not assignable, how are we supposed to assign them to a factoring company? A: We have to establish a lock-box under your business name, and then forwards the funds to us. More details can be obtained on this issue.

Q: I own a  temporary employment nurse staffing agency, do I qualify under your medical receivables program? A: We have a program for staffing agencies in general. If your business invoices to a commercial account and not Medicare/Medicaid or HMO's, then you would fall under our normal temp-staffing funding program.

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Receivable Financing Rates

Starting At 0.69% - 1.59% Or Prime +2% & Admin Fee

  • Quick Approval Process!
  • No Financials up to $350k
  • Easy Set-Up in 3 to 5 Days
  • Over 15 years in business
Click Here for a Quote
1st Commercial Credit Provides Asset Based Lending, Purchase Order Financing and Factoring to all States: