Accounts Receivable Advance

This option provides immediate cash-flow without requiring to sell the accounts receivable for a one-time discounted purchase price while remaining affordable due to equally distributed risk across both parties. Conventional high interest rate business bank loans have become a thing of the past for healthcare providers with the recent availability of accounts receivable advances. 

Upfront Advance:  70%-80% of Estimated Collectable Value (“ECV”), which will be determined by us using industry standards and your collection history.

Factor Fee : 2.0%-2.5% of ECV for every 30 days the claim is outstanding.

Factoring is a financial transaction in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount.

In "advance" factoring, the business owner sells his receivables in the form of invoice to the factor, who makes an advance of 70-80% of the purchase price of the receivable amount. The factor collects the full amount from the customer in due course and pays the balance amount due to the business owner after deducting his commission and other charges. 

To illustrate the process:
You submit a claim to us that is estimated to collect $100. Within 72 hours we will advance you $75 (75% advance) on this claim. If the claim is paid by the insurance provider within 30 days we will be entitled to our advance ($75) plus our factor fee (2% of $100 = $2.00) and send the remainder ($23) to you.
Information Required for Factoring (excel template provided):
  • Current AR aging report by Payer (outstanding claims)
  • Current AR aging report by procedure (outstanding claims)
  • Collection history report for the last 12 months broken down by procedure showing Date of Service, Date of Bill, Amount Billed, Insurance Carrier, Payment made by Insurance, Payment made by Patient, Write Off/Adjustment, Balance.

*Payment subject to MedBanker underwriting requirements & approval, as determined in MedBanker's sole discretion.

**A/R factoring is offered by ExpressCHEX LLC and is not available to medical service providers in every state. Please contact us for a complete list of eligible states.