At MDS Funding, we have created this Web site to satisfy our clients' needs. With this goal in mind, we have compiled a list of frequently asked questions. If you do not find an answer to your question here, contact us at 678-353-3265 or consultants@mdsfunding.com.

Q. How much money will I get through factoring?

A. We typically will advance you 70% to 80% of the face value of your receivables immediately, and the balance, less our fees, when the invoices are actually paid. For instance, if you have $100,000 in accounts receivable on your books, you could immediately receive up to $80,000 in additional working capital. If your sales increase, so will your receivables, and we will advance you more capital. You can see that factoring can be best described as a way of financing your sales.

Q. How long will it take before I receive funding?

A. Once you are established as a client, funding usually occurs within two business days after you submit your invoices for factoring. Within 1 to 2 weeks you can be established as a client.

Q. What is the cost of your factoring fees?

A. Fees vary depending on the amount of factoring volume you do with us, the dollar amount of your invoices, and the strength of your customers’ credit. In general, our fees are no higher than those charged by a credit card company to businesses that accept credit cards for payment. We will gladly give you a firm quote of our fees after we complete a review of your Accounts Receivable.

Q. Will factoring my invoices hurt my customer relationships?

A. No, in fact it can help your relationships. Your factoring of invoices enables us to provide a form of Quality Control for you. If your customer is dissatisfied or unhappy with your products or services, they are quite likely to tell us about it. We will relay these comments to you so you can take appropriate action to keep your customer happy. At MDS Funding, we are very mindful of the time and care you have taken to develop your client relationships.

Q. What if some of the accounts I factor get old?

A. Oftentimes, just the act of factoring will prompt some of your customers to pay more quickly. This is because many factors are reporting companies to the various credit agencies, and your customers know this. They may also know that you are not a reporting company, and if they are slow in paying you it will not be reported. However, if an account we have factored becomes substantially past due, we will discuss the situation with you before taking any collection action. We are respectful of your customer relationships. Also, if we take collection action, you are spared the dilemma of trying to keep your customers happy while trying to collect from them at the same time.

Q. Do I have to factor all of my invoices?

A. No. You decide which invoices you want to factor and which invoices you want to keep. There is no requirement to factor all of your invoices.

Q. In addition to improving my cash flow, are there any other advantages for physicians?

A. Yes. By selling your receivables, you are also providing Asset Protection for your medical practice.
 

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