Alleon Capital Announces New Medical Factoring Facility to NJ Based Medical Provider

by on 09/28/12 at 2:27 pm

Alleon Announces New Medical Factoring Facility

Englewood New Jersey, September 24, 2012  – Alleon Capital Partners, LLC., a medical factoring company, headquartered in Englewood N.J., announces the funding of an ongoing factoring facility for a NJ based medical provider.

The provider runs several NJ based psychiatric clinics and approached Alleon Capital to pay off existing debt and expand operations.

The provider’s operations have grown significantly over the last three years, opening up new clinics to meet the influx of patients. And although the growth has been self-funded the delay in payments (120 days on average) from the insurance carriers has created a cash flow crunch for the psychiatric clinic.

There are currently four clinics in operations and two more awaiting state approval to open.

“We see this all the time”, says Ben Rutkevitz, head of originations at Alleon Capital. “Medical providers are seeing more and more delays in payments from insurance carriers and this significantly impacts their practice.”

This is even more true for practices that are growing. Their expenses increase when taking on new patients and opening up new facilities while at the same time they have to wait four months for payment on services already rendered.

Medical Factoring program can be the solution

A line of credit at traditional banks is not always available to today’s medical providers. There are a myriad of reasons conventional banks turn down business loans today. Most banks need to see at least three years of strong financials to give out a significant business line of credit, so that eliminates most new practices. Credit blemishes and tax issues can also disqualify borrowers right immediately.

Most banks do not understand medical accounts receivable and therefore are uncomfortable loaning against it. Medical Factoring programs from private institutions can be a great alternative for medical providers to fund their growth or meet short term cash needs.

Some medical providers use factoring programs as a short term fix, until they can meet traditional bank’s lending requirements. Others find that they enjoy the ease and lack of bureaucracy at factoring companies as well as the comfort of knowing they are working with someone who understands their practice.

“Our goal at Alleon Capital has always been to provide capital solutions to healthcare providers, so they can focus on treating their patients and growing their practice”, adds Ben Rutkevitz.

“What we have seen over the past three and a half years is that once the stress of finances and collecting AR is relieved from the provider, their quality of service goes up and they see a huge influx in new patients. They can also spend their time and energy on marketing and growing their practice.”

The Medical Factoring Process

Medical Factoring is a process in which a medical provider uses his accounts receivable to obtain liquidity. The provider will sell his third party insurance claims to a factor and get an advance of 70-80% of his collectable amount. When the insurance carrier pays the claim the factor recovers its advance plus a fee, usually 2%. To learn more about the medical factoring process you can check out this video. 

About the Author: Ben Rutkevitz is the head of originations at Alleon Capital Partners (“ACP”).  ACP is a specialty finance company focusing on providing capital solutions to the medical industry.  Its target is small to mid-size medical providers that bill Medicaid/Medicare, HMOs, Commercial Medical, No-Fault, Worker’s Compensation or await payments from Personal Injury Settlements.  To contact Ben Rutkevitz, please call 201-340-6346 or email him at benr@alleoncapital.com.  You can also visit Alleon Capital Partners at www.alleoncapital.com or at their blog, http://medicalfinancingreceivables.co.

Leave a Reply


*


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