As specialists in Healthcare, Xynergy is presented with many factoring opportunities both in traditional medical factoring and healthcare “related” transactions. Once such related transaction involved and staffing company that provides nurses to medical facilities. In this case the facilities are the payors, not third party payors (insurance carriers).
Most commercial factors have eligibility restrictions up to 90 days which then triggers a charge back to the client’s account. This particular applicant was paid predominantly by skilled nursing facilities (nursing homes as they used to be called), and the payments ranged out to 120+ days sometimes, but averaged above 65 days. With this kind of payor many commercial factors had passed on this transaction. When underwriting a transaction, Xynergy looks at what is “normal” for that client, and not necessarily what fits into a standard mold. So when this transaction was presented, although the payments were longer than customary the profile was consistent and somewhat predictable. Accordingly, Xynergy was able to underwrite this transaction and within a few days from now, will issue closing documents to begin funding.
A good understanding of an industry makes it easy to help what would otherwise be considered a non-factorable applicant.
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