I spoke with a dentist in Maryland who is having a significant cash flow problem at this time. He said he customers were having a problem paying him. After talking with him a while longer, he indicated his accounts receivables, 0-30 days are approximately $35K, 31-60 days are $65K, and the total are approximately $135K.
This dentist indicated he knows he will not received near the $135K due to insurance company reimbursement. If he could get now, the part of the $135K that he anticipates getting within the next 60-90 days, this would solve his cash flow problem, and greatly enhance his business because he could then do marketing to increase his customer base.
I told him that in the last several years, I have had trouble assisting physicians finding receivables financing under $150, as many programs won't touch anything under $150K or $250K, and that means $250K in accounts they are willing to factor. Since many accounts will not be to the liking of credit, a dental practice may have to have a factor far higher than the $150K to $250K if they want to be within the dollar ranges that are accepted.
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