In Boston, invoice factoring, or accounts receivable factoring, is an optimal cash flow solution available to most small and medium-sized businesses.
The factoring advance is a percentage of the invoice value that a factoring company will pay you upfront at the time of the receivables sale. This amount is not the final amount for the purchase of the invoices, as you will get the remaining balance after a factoring fee is deducted when the payments come in from your customers. The advance percentage can vary depending on the factoring agreement and the factoring company. Typically it ranges between 75 and 95% of the receivables' value.
When a company sends their unpaid invoices to a factoring company in Boston, they will be forwarded quick cash in a few working days. However, because it's unlike a bank loan, your creditworthiness does not determine the amount of money that will be available to you.
Every day, we receive inquiries from medical and nurse staffing agencies looking for ways to obtain a receivable-based credit line. Medical staffing factoring services in Boston are considered reliable for businesses to access reliable cash flow to fulfill payroll obligations. In addition, prominent medical industries and many other suppliers selling to large companies need our services to close the cash-flow gap.
What are the requirements to obtain healthcare receivables-based financing?
Asset-based finance companies (also known as factoring companies) specializing in healthcare receivable financing will base their decisions on a few factors. The first thing that is evaluated is the net realized value (NRV) of the company's receivables to establish the quality of the receivables that will be considered for the borrowing base. This evaluation is crucial as it will also determine the advance rate.
The second thing that will be conducted is a third-party payer analysis and compliance review. Since the factoring company will take the receivables as collateral, this review will identify clinical liability issues that expose the client and the finance company regarding the receivables. In addition, the factoring company will evaluate things like the verification of licensing, a review of current surveys, and payment frequency for each payer class.
Factoring companies are usually more flexible than asset-based lenders because of the nature of the collateral. Factoring companies focus on the quality of eligible receivables and competency within the client's billing department. Funding decisions are not based on a balance sheet that may show significant fluctuations. However, as long as it can provide proof of profitability, the factoring company may still go forward with funding the client.
Healthcare providers are choosing receivables financing as a funding solution to fund their growth. Receivable-based financing gives access to a predictable cash flow in an unpredictable payment cycle industry. 1st Commercial Credit provides invoice factoring and receivable financing to medical staffing agencies nationwide.
Manufacturing factoring is a simple financial solution that involves selling a company's outstanding invoices to a factoring company for a cash advance. 1st Commercial Credit is here to provide financing services to manufacturing businesses in Boston.
The minimum criterion to qualify for our invoice factoring includes filling out a 2-page application form, having invoices for work or orders already satisfied, and having creditworthy customers. 1st Commercial Credit specializes in offering the best supply chain finance solutions to all industries. Our process is quick and straightforward. We make same-day decisions, offer customized rates, and accept low credit scores.
Manufacturing Factoring Process with 1st Commercial Credit:
Equipment leasing is an option where business owners can "rent" the equipment for a determined time and make monthly payments. At the end of the lease, the owner will have the option to return, buy, or extend the lease. This alternative is highly advantageous for businesses that need to replace or upgrade equipment frequently and don't want to deal with depreciation. Qualifying for either financing option is typically more accessible than other business loans with banks or credit unions.
In some cases, specialized lenders will approve financing for companies with a low credit score if you can show the lender steady cash flow and revenues. Terms and requirements will vary depending on the lender, but loan terms typically range from 1 to 5 years, with borrowing limits of $10,000 to $15,000,000.
In addition to being flexible, equipment financing can also be faster than many other types of funding. Funds can be received within 24 hours, allowing you to acquire the equipment quickly. Now that you know what equipment financing is and how it works don't hesitate to contact 1st Commercial Credit to understand how our services can help your business.
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