An orthopedist in the North East was presented to Xynergy Healthcare Capital as a potential client. The difficulties being experienced was that the typical time it took for him to be paid was a little less than nine months (260 days). The obvious question is how one can run a business with that kind of broken payment process.
Upon examination of the historical payments for this provider Xynergy was able to see patterns that have shown a predictable nature of these cash flows and in fact were manageable for a factoring (or perhaps we can call it a “quasi-factoring”) transaction. The structure however would be somewhat different than typical proposals would be.
After determining the net realizable amount of the claims, Xynergy purchased the group of receivables at discount to the expected reimbursements and was able to supply a finance vehicle that gave the provider a boost in cash flow. More importantly the provider was now able to periodically sell new batches of these claims to begin a program of vastly improved cash flow.
This new program form Xynergy Healthcare Capital can help providers in all of the “no-fault” states nationwide.
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