Despite the lowering of rates by the Federal Reserve, the availability of credit is becoming more restrictive. This is especially worrisome for the healthcare industry. Additional debt and lines of credit from banks are more difficult to obtain while the demands on cash flow for healthcare providers and suppliers is increasing. An underutilized solution to this liquidity crunch, not dependent on the availability of credit or limited by caps on credit lines, is medical accounts receivable funding [MAR funding].
More and more healthcare CFO's are adding this funding tool to their financial portfolio because:
- it is debt-free
- funds are available within 24-48 hours
- the amount of funding grows as their A/R grows
- it provides a predictable cash flow
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