Dentists face a variety of day-to-day challenges, from staying on the cutting edge of new techniques to marketing their practices to meet increased competition. Maintaining an adequate level of dental practice working capital does not have to be a problem because dental invoice factoring stabilizes cash flow.

Most people view dentists as "rich" and would have no need for short term financing. While most dentists earn a good living, cash flow can often be an issue because of the time it takes to collect from third-party payers such as insurance companies and federal and state programs. The wait can be as long as 120 days, while payroll, rent and other operating expenses must be paid sooner. This imbalance of payments versus collections can cause a serious problem with the working capital position of the practice. Dental accounts receivable factoring brings cash flow into balance and provides the funds to make payments in a timely manner and grow the practice.

Why use dental invoice factoring instead of just going to the bank?

Most banks are leery of lending against dental or medical receivables because of the complexities of the collateral. Medical and dental billing isn't like that of other industries because of the variance in what is actually collected. Each insurance company may have a different contracted rate. In other words, a procedure billed out at $ 8,000 may result in a collection of $ 4,000 from one insurance company and $ 5,000 from another. Banks will likely be very conservative as to the amount they lend on receivables. With dental invoice factoring, the amount of funding is only limited by the pool of third party receivables that have been generated. Dental working capital loans can also be offered by banks, but are typically limited to $ 100,000 and are typically … Read the rest

Dentists face a variety of day-to-day challenges, from staying on the cutting edge of new techniques to marketing their practices to meet increased competition. Maintaining an adequate level of dental practice working capital does not have to be a problem because dental invoice factoring stabilizes cash flow.

Most people view dentists as "rich" and would have no need for short term financing. While most dentists earn a good living, cash flow can often be an issue because of the time it takes to collect from third-party payers such as insurance companies and federal and state programs. The wait can be as long as 120 days, while payroll, rent and other operating expenses must be paid sooner. This imbalance of payments versus collections can cause a serious problem with the working capital position of the practice. Dental accounts receivable factoring partnerships cash flow into balance and provides the funds to make payments in a timely manner and grow the practice.

Why use dental invoice factoring instead of just going to the bank?

Most banks are leery of lending against dental or medical receivables because of the complexities of the collateral. Medical and dental billing is not like that of other industries because of the variance in what is actually collected. Each insurance company may have a different contracted rate. In other words, a procedure billed out at $ 8,000 may result in a collection of $ 4,000 from one insurance company and $ 5,000 from another. Banks will likely be very conservative as to the amount they lend on receivables. With dental invoice factoring, the amount of funding is only limited by the pool of third party receivables that have been generated. Dental working capital loans can also be offered by banks, but are typically limited to $ 100,000 and are … Read the rest

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