BP Oil Spills Into Factoring Services

The gulf oil leak is showing up in some unexpected areas, including the accounts receivable factoring industry. Read more

Are You Linked In with Factoring Groups?

If you are looking to network with other factoring professionals then it’s time to get active with LinkedIn.

This online networking platform is doing for business what Facebook did for friends and family.

LinkedIn offers free membership for networking with over 70 million members in 200 countries.  But even better, you can specify the type of professional groups you want to actively follow.

The factoring industry alone has over 50 Groups focused on this specialized segment of commercial financing.

If you are a factoring broker be sure to check out these most active groups:

• Commercial Finance Association
• Factoring Professionals (FP Americas and FP Europe)
• Trade Finance, Factoring and Forfaiting Professionals
• The Global Commercial Finance Network
• FactorNet Lead Referral and Networking Group
• International Factoring Association
• De Lage Landen Member Community
• Asset Based Finance Association LTD
• International Factors Group
• National Funding Association
• Commercial Finance Today
• Factoring Brokers

Recent discussions ranged from where to find accounts receivable funders for dentists to the potential impact of the Wall Street Reform Act on the factoring business.

So what are you waiting for?

Leave the embarrassing photos and weekend updates to Facebook and start using LinkedIn to network with factoring professionals that can help grow your business.

When Do Factoring Brokers Get Paid?

Brokers and consultants earn lucrative and reoccurring commissions for the referral of business owners that use accounts receivable financing services.

But when are these factoring commissions paid? Read more

7 Questions for Factoring Business Networking

Networking through professional groups is a time proven way to develop factoring clients. But what do you say to complete strangers?

It’s actually pretty simple to keep the conversation rolling if you use these seven questions. Read more

Investor Spotlight: Working With AAA Factoring Group

AAA Factoring Group works with businesses and cash flow brokers to provide accounts receivable financing.

Factoring Investor (FI) asked Duane Marchant, founder and president, to share some information on working with his company. Read more

What’s in Your Factoring Broker Package?

You know that feeling when you see something done right and want to share it with others?

Well we found several “must have” factoring broker kits while Read more

Factoring News: Two New Slow Paying Customers

Your biggest and best customers might just now be your slow paying customers.

This disturbing trend in accounts receivable financing is affecting both business owners and factoring companies. Here’s an enlightening update: Read more

Using a Factoring Company

One of the side effects of the economic crisis is that more companies need business financing while less institutions were willing to provide it. Because of this, companies started looking for other options to business loans. One of the options Read more

Is a Factoring Career Right for You?

Earning $50,000 – $250,000 per year?
Full-Time, Part-Time, or even Spare Time!

Today’s Credit Crisis can be Your Opportunity for Wealth! To say times are tough would be Read more

Medical Coding Factoring Terms

When a medical coding service is considering selling their receivables to a factoring firm, it’s important to familiarize themselves with some common factoring terminology. This is a quick reference guide outlining some of the more commonly-used factoring terms to help medical coding business owners navigate seamlessly throughout the entire factoring process.

ACH (Automatic Clearing House) – One method factoring companies use to electronically transfer funds into an Account Creditor’s account. When an ACH is initiated, the funds are made available electronically in the Account Creditor’s account on the next business day.

Account Creditor – You, the client and provider of medical coding services.

Accounts Receivable – The money that is owed to an Account Creditor for the services it has provided to customers on credit. The amount indicated on an issued invoice.

Advance Rate – Money provided immediately to the Account Creditor-expressed as a percentage of the total invoice amount. Frequently, factoring firms advance between 70-90% of the invoices it buys.

Account Debtor – The purchaser of medical coding services who is responsible for paying the invoice, (a.k.a. your customer.)

Cash Flow – The measurement of cash coming into a company via accounts receivables and cash going out of a company via accounts payable and payroll.

Collateral – An asset that is promised or given to a funder to guarantee the discharge of an obligation by the Account Debtor.

Discount Fee – A fee assessed by a factor that purchases accounts receivable. Traditionally, the discount fee is determined by the size of the invoice, the length of time it takes to collect the funds and the creditworthiness of the customer.

Face Amount or Face Value – The total amount of an invoice.

Medical Coding Factor – A company that provides operating capital to businesses through the purchase of their invoices.

Medical Coding Factoring – An alternative financing arrangement, in which a factor purchases the accounts receivables of a company, advances a specific percentage of the invoice immediately and then collects on those invoices.

Medical Coding Invoice – A legal debt instrument which indicates the amount due from a customer to pay for delivered medical coding services.

Non-Recourse - The period of time in which the accounts purchased by the factor remain the factor’s accounts and do not revert to the Account Creditor if unpaid due to an insolvency event. The factor accepts full credit risk for any and all accounts that it purchases during this period.

Notification – The process whereby the factoring company communicates to an Account Debtor that an invoice has been purchased from the Account Creditor and that the Account Debtor is to pay the factoring company directly.

Recourse – The period of time in which accounts purchased by the factor are able to revert to the account creditor if unpaid due to an insolvency event. The client accepts full credit risk for any and all accounts that it sells to the factor during this period.

Reserve – Amount of money that is not immediately provided to the company factoring its accounts receivable when the account is purchased by the factor, expressed as a percentage of the total invoice amount. (Advance Rate + Reserve = 100% of Total Invoice)

Reserve Release – The Reserve, minus the discount fee, is transferred by the factor to the client after payment is received.

UCC (Universal Commercial Code) – The laws dealing with commercial business.

UCC-1 – The financing statement (Form UCC1) filed to perfect a security interest in named collateral.

Keeping this medical coding factoring terminology guide close by during conversations with factoring firms will help medical coding business owners better be able to speak and understand the “factoring language.” Using this article as a reference also allows medical coding business owners to save time by focusing on asking the right kinds of questions to locate the best medical coding factoring firm for their company.

Philip Cohen is the founder and president of PRN Funding, LLC, which is an extraordinarily focused niche player in the medical coding invoice funding market place. Through a process known as factoring, PRN Funding provides business owners with the financial resources needed to grow and effectively compete in the industry. With no minimums or fixed terms, PRN Funding provides medical coding agencies with flexible and immediate access to capital. We give you the freedom to factor what you want, when you want, whom you want, for as long as you want. Prior to founding PRN Funding, Mr. Cohen was an executive officer of The MRC Group, a national provider of Medical Transcription Services. Contact Philip Cohen at toll-free 866.776.5407 or via email at pcohen@prnfunding.com. Please visit PRN Funding, LLC on the web at http://www.prnfunding.com/

Article Source: Ezine Articles – Medical Coding Factoring Terminology

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