In November of 2013 an applicant was presented to Xynergy Healthcare Capital (XYN) for factoring. The applicant provided home health services and billed about 23K per month. Home health care providers unfortunately have difficulties growing since the new services provided by new personnel will not be paid for a month or so yet the service provider needs to be paid every week (or every other week). Factoring as we know facilitates this quite well providing current cash flow from current services. This provider started factoring an average of 5K per week and had indicated that they had new contracts for growing their business.
In August 2015 some 22 months later they are billing $166K per month factoring about 41K in A/R per week. The client has attributed this to a very strong marketing team that they have and to factoring the life blood of the growth process.
The answer is self evident.
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