If your current cash flow isn't adequate to fuel your growth or stay caught up on bills, dental invoice factoring is an ideal way to acquire working capital. With factoring, you receive up to 85% of your insurance and government program accounts receivable in cash at the time of care. Instead of waiting up to 90 days to get paid, we pay you up front and we'll even wire it directly into your practice's bank account.
The DPC factoring program is ideal for the dental professional who can't qualify for a conventional working capital loan or is growing at such a rate that additional funds are needed on an ongoing basis.
Features and benefits of dental invoice factoring
Funding is only limited by the amount of your third-party accounts receivable
No personal guarantees required
Qualification not based on practice profitability or owner's credit score
Fast application process
Up to 85% advances on third party invoices wired to your account immediately
Cash available for any business purpose you desire, including volume discounts on supplies purchased
How dental invoice factoring works
Once we receive your signed application and other information requested, we determine if your practice is a good candidate for factoring. If you are, we will issue you what's called a Letter of Intent (LOI) which specifies the proposed terms of the arrangement, including advance rate on invoices submitted and the factoring fees to be charged. If you accept the terms, we will need the signed LOI and a check for due diligence. The due diligence charge is for an extensive review of your billing and collections system and is necessary to determine how much money we can advance to you. In many cases, the audit discloses irregularities with this important function which will ulitimately pay for the audit cost.
Once the due diligence audit is complete, a contract is drawn up and you're ready to submit billings for advances. Once a batch of invoices are received, funds are disbursed directly into your bank account for you to use. Once the invoices are collected, the remaining amount (the total collectible amount of the invoices less what we advanced to you) is wired to your account minus the factoring fee.
Starting a dental invoice factoring arrangement
Assuming we receive the signed application and other documents we request in good order, it generally takes about two to three weeks for the arrangement to get set up. Please click on the button below and take a minute to complete the simple form which helps us move forward with your request.
