Ozarks Capital Funding, LLC has added a factoring product for the healthcare industry. According to Kent Harlan, a Certified Public Accountant since 1984 and owner of OCF, "the healthcare industry has a need for these products to allow hospitals, clinics, and individual practices to thrive and grow. A fast-growing healthcare provider often finds it difficult to acquire much-needed capital because of the complexities of third party billing. Banks are leery of loaning money to physicians for that reason".
The medical A/R factoring program is not a loan to the provider. The factoring company advances 75%-85% of the accounts receivable third-party billings that are submitted for funding. When the bills are paid by the insurance company or the government, the remainder is remitted to the provider less the factoring fee (typically 2%-3%).
"We’re excited to offer these products because it compliments our existing product line of equipment leasing, commercial factoring, and asset based lending", added Harlan. "Factoring helps stabilize cash flow and allows providers peace of mind, especially when they don’t have to wait 30 to 60 days to collect their money."
Candidates for funding include hospitals, surgery centers, labs, medical staffing companies and other related medical organizations. "Unlike many companies that provide this service, we are able to include chiropractors in the funding process."