Washington DC Healthcare Industry is Growing Without Debt
The demand for healthcare in Washington, DC is on the rise, and many providers and suppliers are experiencing a financial strain. Instead of relying on loans, every participant in the healthcare industry from suppliers to practitioners are improving cash flow to build up capital reserves to maintain stock and grow operations.
Cash Flow Challenges in Washington, DC
Washington, DC has a fast-paced economic landscape, and having a healthy cash flow is essential to thrive and grow. Traditional business practices, such as issuing invoices with staggered payment schedules of 30 days or longer can place a big strain on cash flow. Expenses rise while businesses wait for customers and patients to make payments. These practices push businesses and practices in the healthcare industry to turn to loans and other forms of debt-based financing to get the capital necessary to meet financial obligations and act on plans for growth.
Thinking Outside the Bank
Instead of taking on debt to temporarily quell cash flow issues, the healthcare industry in Washington, DC is taking advantage of factoring services. Factoring allows suppliers, distributors, private practices, and large healthcare centers to boost cash flow and get access to funds as invoices are generated. The entire process is simple, fast, and eliminates all of the red tape associated with traditional lenders. Businesses involved in the healthcare industry submit unpaid invoices for factoring. Instead of waiting 30 to 90 days for payment, the open invoices are turned into cash within 24 hours. By factoring receivables, the Beltway healthcare industry is able to access capital and meet financial obligations, make payroll, order supplies, and restock inventory. Additionally, these businesses are able to accumulate the revenue necessary to grow in a highly competitive market.
No Debt Required
One of the best advantages of using factoring is that it places no debt on the balance sheet. Factoring is an immediate exchange of receivables for capital. Patients and customers will still adhere to the payment schedules on their invoices, but their payments will go to the factoring company to repay the balance owed for their services. Businesses in the Washington, DC healthcare industry get to preserve their credit ratings, boost cash flow, and get immediate access to the capital they need.
Source Commercial Funding provides accounts receivable financing solutions to the healthcare industry in the Washington, DC area. Contact our offices today and learn more about how our experts can help your business or practice get faster access to revenue.