Accounts Receivable Factoring

Accounts Receivable Financing and Accounts Receivable Factoring are two terms that are intermittently used, but there is a major difference between them. Although both refer to the concept of extending cash to an owner of a business in lieu of invoices and other Accounts Receivable, there are differences between the two, no matter how subtle.

First of all, Accounts Receivable Financing is a loan in which the invoices are used as collateral. But this not the case with Accounts Receivable Factoring. Accounts Receivable Factoring is not a loan. It involves the selling of the invoices to the Financing company at a rate less than the face value of the invoices. The Financing companies then collect the money at the full face value from the clients. This means the business house no longer has the responsibility of collecting the money.

But this is not the case in Accounts Receivable Financing. The process of Financing involves the extension of an advance on the percentage of each invoice??bf?s amount. Also, the responsibility of collecting the money remains with the business house.

Both Accounts Receivable Funding and Financing companies charge additional fees for services rendered, but in case of Accounts Receivable Factoring, the fees charged are comparatively higher. This is mainly because the entire responsibility of collecting the money is with the Financing company.

Companies providing Accounts Receivable Financing step in and work with companies who cannot get loans otherwise. Accounts Receivable Factoring, on the other hand, proves useful to business houses urgently in need of ready cash flow.

That said, both Accounts Receivable Factoring and Financing prove extremely convenient to companies who urgently require a cash flow to keep their business going.

Accounts Receivable Factoring provides detailed information on accounts receivable factoring, accounts receivable collection, accounts receivable factoring companies, accounts receivable financing and more. Accounts Receivable Factoring is affliated with Accounts Receivable Collection

Learn How To Finance Your Healthcare Business With Medical Factoring

There are few bigger pains for healthcare industry professionals than having to wait 30, 60 or even 120 days to collect payments from insurance companies, HMOs and Medicare/Medicaid. The healthcare industry is riddled with complex billing, coding and processing rules that create very long payment cycles. This can be very difficult for medical offices, testing and diagnostic centers, medical supply companies, or any healthcare related business, for that matter. There are always many ongoing expenses that can?t wait. There is rent that needs to be paid, offices expenses that need to be covered, and payroll that must be met.

This situation creates a problem for most healthcare businesses. On paper, the business may look very profitable and seem to be doing well. But in reality, most of the money is tied up in slow paying invoices (also known as accounts receivable) with little cash to show for it in the bank.

When faced with tight cash flow, most healthcare professionals turn to their bankers. Medical doctors can usually qualify for signature loans or lines of credit. Other business professionals are not so lucky. In reality, a loan or line of credit may help you in the short term, but will not solve the main problem. Why? Well, loans are good for buying equipment or large capital expenditures, but not for covering recurring and ongoing expenses. A line of credit is a better solution, but they usually have fixed limits. What happens if the business grows past the limits of the line of credit? Many healthcare professionals usually find out, the hard way, that the bankers that were quite happy to extend the first loan or line of credit will not be so helpful at increasing it. Unfortunately, bankers absolutely hate it when businesses came back to the well for more money.

If you look at the problem at hand, you will soon realize that the perfect solution should have the following characteristics. First, it should be able to accelerate your insurance payments so that you can get them quickly rather than slowly. Second, the solution should be able to grow with your business. So, if your business grows its billings, the solution should be able to adapt the financing it delivers, seamlessly. Third, the solution should allow you to finance significant growth. Maybe three to five times your current revenues ? or more.

There is a solution that meets these criteria and is available to the healthcare industry. The solution is to factor your medical receivables using a financing tool called medical factoring. Medical factoring allows you to accelerate your payments from insurance companies, HMO?s or Medicare/Medicaid. It enables you to receive a substantial amount of your net collectables within days of billing, streamlining your cash flow dramatically.

Medical factoring, a specialty form of general factoring, allows you to sell your claims and receivables to a factoring financing company. The factoring company buys them ? at a small discount ? and pays you with immediate funds. The factoring company waits to be paid while you get to use the funds to meet business expenses. As opposed to traditional banking financial products, medical factoring has no arbitrary limits. You can factor or sell as much revenue as you can generate, making it the ideal financing tool for growth.

However, factoring is not the best solution for every situation. It works best in instances where your main challenge is that you cannot afford to wait to get paid in 60 to 120 days. It helps you meet ongoing and recurring expenses such as rent, payroll and lease payments. Medical factoring is an ideal solution for medical offices, rehabilitation centers, medical testing and diagnostic centers, medical supply companies and small to mid sized hospitals.

Invoice factoring Group can provide you with a medical factoring and medical receivables factoring quote for free at http://factoring.qlfs.com/html/medical_offices.html . Marco Terry, the president, can be reached at (866) 730 1922

Factoring Receivables

Looking to free up cash that is tied up in unpaid invoices? If so, then you have come to the right place. Factor receivables or factoring receivables is nothing but obtaining a free cash flow. This is the best and most effective way to resolve short term financial crunches.

Whenever you sell goods and products to anyone on credit, you issue an invoice. When an emergency strikes, however, you may need urgent cash. In this situation, you can sell those open invoices to an invoice factoring company for cash. This whole process is known as factor receivables. Factor receivables are the best way to overcome any financial problem.

Factor receivables generally happen when you sell goods or services to commercial or government accounts. In this transaction, you offer 30 to 60 days to your clients to pay their balance. This can be a financial challenge, but there is a solution. It’s not your local bank- it is factor receivables. There are several benefits to factor receivables: Your invoices are paid within 24 hours. This means no more waiting for payments. Factor receivables are easy to obtain. It takes just a couple of days to set up an account.

Factor receivables depend primarily on the reliability of your customers- if the reliability is there, it is easy to obtain factor invoices. Furthermore, factor receivables easily integrate into your company, as follows: You deliver goods or services and invoices to your clients. Simply send the invoice to the factor receivables company, who pays you the advance for your invoice as a first installment You can use the funds received to pay business expenses, while the factor receivables company waits to get paid by your client Once the factoring company gets paid, it rebates the remaining 15% as a second installment, minus a small service fee.

Factor receivables are one of the best alternatives for startup companies or established companies that have exhausted their bank resources. It is a flexible option and its biggest benefit is that contrary to what many believe, it is not a loan. This is not true; you are simply using your open invoices as an asset.

For more information on factor receivables, factoring receivables, factor receivable and factoring invoices please visit www.magfinancial.com.

Scott Stevens is well known author who writes about financial services such as cash flow programs, account recievables, factor recievable etc. Find more information about magnolia financial service at http://www.magfinancial.com