Obtaining financing for your pharmacy might be easier than you think. Not only can we finance equipment for your business, but we also have the ability to factor in your accounts receivables.
So that means your slow-paying insurance companies will no longer be the reason for your cash crunch. If you are a compounding pharmacy or even if you are in manufacturing, your commercial clients are ideal when it comes to factoring your receivables.
It’s common to hear insurance companies taking anywhere from 3 to 6 weeks to pay their invoices. Does your business have enough cash reserves to withstand those time frames? If not, we have a solution that is faster and easier than applying for a line of credit with your bank.
Do all pharmaceutical companies qualify?
Whether you are an independent pharmacy, wholesale pharmacy, compounding pharmacy, drug manufacturers, or even if your pharmacy has multiple locations, First Capital Business Finance can assist your company with factoring your account receivables. The pharmaceutical industry is competitive regardless of the size of your company. Having the capital readily available is very important in maintaining day-to-day expenses like payroll, inventory, insurance, rental or mortgage payments, etc.
Our Easy Approval Process!
When it comes to factoring, the approval process is probably the fastest and easiest when compared to any other financial products. Before we ask you for an application, we rather do a quick qualification call over the phone. This can save you, the business owner a lot of time. (If you’re ready now, call 949-491-1423 Once we’ve completed the quick qualification call, we would then need the following items:
- Accounts Receivable Aging Report (w/ detailed payer information by insurance provider)
- Accounts Payable Aging Report
- Factoring Application
Once we have your qualification package, we would then schedule a conference call with one of our underwriters. The underwriter will only need about 5 to 10 minutes of your time to go over any questions they might have regarding your AR & AP aging reports.
What would your traditional bank need for a business loan?
If you have not applied for a business loan with your bank, you wouldn’t have anything to compare with. But your bank will most likely need a laundry list of items:
Startup Businesses are Welcome!
We are not limited to established businesses, we also have programs for startup businesses. Guidelines will be different for a startup business, so it’s highly recommended you speak to one of our advisors and they can go over all the different options with you.
- Two years of business tax returns
- One to two years personal tax returns from all principals
- Twelve months of business bank statements
- Personal financial statement from all principals
- Bank application
- Business plan
- Two years of financials
- Balance sheet
- Profit & Loss
- Debt schedule
- Income statement
So as you can see, the process of obtaining financing from your bank is not only more work, but their guidelines are more strict and the time frame to obtain the capital is typically 3 to 4 weeks minimum.
How do accounts receivable financing work?
Due to the complexity of factoring retail pharmacies, we have developed a way to assist with factoring those receivables coming from insurance companies. Depending on the number of insurance companies you are dealing with, we’ll need to figure out who the majority of your accounts receivables are coming from. Depending on the capabilities of your pharmacy management software, you would need to produce some reports that will show the following information:
- Total number of adjudicated claims broken down by each insurance company
- Receivables that were reconciled by central pay and the respective PSAO to match up with the adjudicated claims report from each insurance company.
(We don’t want any patient information or anything that will be in violation of HIPAA)
From here we will be able to schedule a call to figure out which of the insurance companies you prefer to factor. Keep in mind, you do not need to factor all invoices.
What is the next step?
If you would like to schedule a call with one of our advisors, just give us a call at 949-491-1423. If you can have your AR/AP aging reports readily available, it will make the process a little faster and smoother.
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