| |
 |
Increase
Your Profits! |
|
Reduce
Your Days Sales Outstanding (DSO) to within 2 to
4 days! |
|
Reduce
Your Administrative Costs! |
|
Increase
Your Working Capital! |
|
Grow
Your Business without having to go into Debt! |
|
Increase
Your Cash Flow with Absolutely "NO" Debt! |
|
With
Your Own "In-House" Financing - Why borrow? |
|
|
|
|
 |
•
Selling your medical receivables
• no collateral – Accounts Receivable used as collateral
• off-balance sheet funding
• eliminates the 30 to 120 day collection period
• unlimited funds
|
|
•
A loan. Factoring is the “sale” of your medical
receivables for delivered
services.
• Debt. Factoring is not an asset-based loan, nor is it
a debt instrument similar
to those offered by banks.
|
|
Factoring
can increase profits by increasing collections and “catching”
underpaid claims in the auditing process.
Factoring also “reduces” your collection period,
commonly known as Days Sales Outstanding (DSO), down to 4-days!
That's right! Just 4-days.
| |
85%
NET
COLLECTION |
94%
NET
COLLECTION |
| GROSS
CHARGES |
$10,000,000.00 |
$10,000,000.00 |
CONTRACTUAL
ADJUSTMENTS |
$4,600,000.00 |
$4,600,000.00 |
| NET
CHARGES |
$5,400,000.00 |
$5,400,000.00 |
| PAYMENTS |
$4,590,000.00 |
$5,076,000.00 |
ADDITIONAL
PROFITS TO
PRACTICE FROM FACTORING |
0 |
$486,000.00 |
| Provided
by Amercian Cash Flow Association/Sun Capital |
|
|
Liquidity
ratios
a.-
current ratio:
improved
(current
assets increase)
b.-
days-cash on-hand ratio:
improved
(the
daily average of cash on-hand increases)
c.-
collection period (a/r turnover):
improves
dramatically
(reduce
collection period to 4 days)
|
|
Profitability
ratios:
a.-
cash return on netcollectible value:
improves
(increases
cash by auditing &
collecting
under-paid claims by third parties)
b.-
gross profit margin
(increases
profit)
c.-
net profit margin
(increases
- bonus time!)
|
|
Solvency
ratios:
a.-
cash debt coverage
b.-
total debt and total asset
(reduce
debt and increase assets)
regardless of how successful and profitable a business may be,
or how hard they are struggling to survive, each business has
its own unique cash flow cycle with its own
peaks and valleys. Factoring medical receivables streamlines
the cash flow cycle. It can virtually eliminate
the valleys of the cycle. Thus, giving the business a steady,
consistent cash flow, which will give peace
of mind and security to its owner(s), employees and
suppliers.
|
| |
Financing
Strategies
| |
Leasing |
Going
Public |
Venture
Capital |
Bank
Loan |
Private
Investor |
Government
Programs |
Factoring |
| Simple
Application |
No |
No |
No |
No |
Depends |
No |
No |
| Days
to Fund |
15-30 |
120-170 |
90-180 |
60-180 |
15-90 |
60-180 |
2
to 10 |
| Approval
based on Prospect's credit |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
| Funding
tied to Sales |
No |
No |
No |
No |
No |
No |
Yes |
| Give
up Equity |
No |
Yes |
Yes |
No |
Yes |
No |
No |
| Give
up Control |
No |
Sometimes |
Yes |
No |
Sometimes |
Sometimes |
No |
| Limited
to Asset Value |
Yes |
No |
No |
Yes |
Maybe |
Yes |
No |
| Require
Profitability |
Usualy |
Yes |
Usualy |
Yes |
Usualy |
Usualy |
No |
| On-going
monitoring |
No |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
| Reduce
overhead |
No |
No |
No |
No |
No |
No |
Yes |
| Provided
by Amercian Cash Flow Association/Sun Capital |
|
|
|
