Financing Medical Suppliers – Quick Cash for Healthcare Industry
Accounts Receivable Factoring can quickly meet the working capital needs of manufacturers and distributors, including those focused on the healthcare industry.  Factoring Program Overview $10,000 to $10 Million Competitive Advance Rates Non-Recourse No Audits. No Financial Covenants. Businesses with strong customers are eligible. We specialize in difficult deals : Start-ups Turnarounds Historic Losses Customer Concentrations Poor Personal Credit Character Issues Factoring focuses on the quality of your client’s accounts receivable, ignoring their financial condition. This enables us to move quickly and fund qualified businesses including Manufacturers, Distributors and a wide variety of Service Businesses in as few as 3-5 days. Contact me today to learn if your client is a fit.  Chris Lehnes 203-664-1535 clehnes@ChrisLehnes.com Request a Proposal Connect on LinkedIn |
Accounts receivable factoring is a powerful financial tool that medical supply distributors can use to meet their working capital needs. Here’s how it works and why it’s beneficial:
How It Works
Accounts receivable factoring involves selling unpaid invoices (accounts receivable) to a factoring company at a discount in exchange for immediate cash. Instead of waiting 30, 60, or 90 days for customers to pay, the distributor gets quick access to funds, which can be used to cover operational costs, purchase inventory, and expand the business.
Financing Medical Suppliers
- Improved Cash Flow – Medical supply distributors often deal with hospitals, clinics, and healthcare providers that have long payment cycles. Factoring provides immediate liquidity to cover expenses.
- No New Debt – Unlike traditional loans, factoring is not a loan, so there’s no debt on the balance sheet. The company simply sells its receivables.
- Funds for Growth – The upfront cash allows businesses to take on larger orders and expand operations without cash flow constraints.
- Flexibility – Factoring is scalable, meaning the available funding grows as the business generates more invoices.
- Outsourced Collections – The factoring company often handles collections, reducing administrative burdens on the distributor.
Example Scenario
A medical supply distributor delivers $100,000 worth of supplies to a hospital, with payment terms of 60 days. Instead of waiting, they sell the invoice to a factoring company for 90% upfront ($90,000). The remaining 10% (minus the factoring fee) is received once the hospital pays in full.
Would you like help identifying the best financing option for your specific needs? Contact Factoring Specialist, Chris Lehnes