Factoring for dentists: Quick liquidity without risk
Managing invoices and ensuring stable liquidity: This is a headache for many dentists. Delayed payments from patients and paper and shipping costs are just a few of the annoyances. This is where factoring comes in, which quickly solves billing problems. In this article, we explain the potential of factoring for dental practices and discuss advantages and disadvantages.
The most important answers about factoring for dentists at a glance:
Echtes Factoring bezieht sich auf den Verkauf von Forderungen eines Unternehmens an ein Factoring-Unternehmen. Dabei übernimmt das Factoring-Unternehmen das Ausfallrisiko und kümmert sich um das Debitoren-Management.
Unechtes Factoring, auch bekannt als Finanzierung mit Sicherheiten, bezieht sich auf eine Finanzierungsform, bei der ein Unternehmen seine Forderungen als Sicherheit für einen Kredit verwendet, ohne sie tatsächlich zu verkaufen. Das Unternehmen behält das Ausfallrisiko und ist für das Debitorenmanagement verantwortlich.
Vorteile von Factoring für Zahnärzte sind:
- Sofortiger Zugang zu einem Großteil der Einnahmen verbessert Liquidität und ermöglicht Deckung der laufenden Ausgaben sowie Geschäftsausbau.
- Effizientes Forderungsmanagement durch Übernahme von Mahnungsmanagement, Inkasso und Verwaltung der Forderungen durch den Factor.
- Befreiung des Praxisteams von Verwaltungsaufgaben, sodass sie sich auf primäre Aufgaben konzentrieren können, was zu einer effizienten Praxisabwicklung führt.
- Digitalisierung ermöglicht digitale Abwicklung sämtlicher Zahlungen nach einmaliger Nass-Unterschrift der Patienten in der Praxis, was Zeit, Druck- und Portokosten spart.
- Möglichkeit von Ratenzahlungen für Patienten, was der Patientenbindung dienen kann.
Hat Factoring auch Nachteile?
Die Nachteile von Factoring können sein:
- Bestimmte Factoring-Verträge können Bedingungen enthalten, die die Flexibilität des Unternehmens einschränken.
- Die Einbindung eines Factors ins Forderungsmanagement kann negative Auswirkungen auf Kundenbeziehungen haben, insbesondere bei aggressiven Inkassopraktiken. Dem kann man entgegenwirken, in dem der Patient aufgeklärt wird, dass die Rechnung vom Factoring-Unternehmen abgewickelt wird.
Die Kosten setzen sich normalerweise aus mehreren Komponenten zusammen, die je nach Anbieter variieren können. Die Hauptfaktoren, die die Factoring-Kosten bestimmen, sind:
- Factoring-Gebühr: Diese Gebühr wird als Prozentsatz des Forderungsbetrags berechnet, der dem Factor verkauft wird. Sie variiert üblicherweise zwischen 1% und 5% des Forderungsbetrags, kann jedoch je nach Vertragsbedingungen und Anbieter variieren.
- Abwicklungsgebühr: Diese Gebühr kann für die Bearbeitung und Abwicklung der Forderungen sowie für das Monitoring der Zahlungseingänge erhoben werden. Sie kann als fester Betrag pro Forderung oder als Prozentsatz des Forderungsbetrags berechnet werden.
- Weitere Gebühren: Je nach den vereinbarten Vertragsbedingungen können zusätzliche Gebühren für optionale Leistungen wie Bonitätsprüfungen, Mahnwesen oder andere Dienstleistungen anfallen.
What is factoring & how does it work?
Factoring is a financing instrument in which a company (in this case the dental practice) sells its receivables from customers (patients) to a specialized financial company (the Factor).
At factoring The factoring company immediately pays the dental practice a large part of the value of the receivables, usually between 70% and 90%. The remaining amount, minus a fee, is paid out as soon as customers pay their invoices.
That means: Dental practices don't have to worry about anything in claims management and get the majority of their patients' bills transferred to their account immediately after invoicing.
For which dentists is factoring worthwhile?
Factoring can be beneficial for a wide range of dentists, particularly those who:
- Struggling with payment delays: If the dental practice regularly has to wait for payments from patients or insurance companies to maintain its liquidity, factoring can help overcome this bottleneck.
- Aim for strong growth: Dentists who want to expand their practice and need additional financial resources to make investments or purchase new equipment can benefit from factoring by giving them immediate access to their claims.
- Want to reduce your administrative tasks: By outsourcing claims management to Factor, dentists can reduce their administrative burdens and focus more on their clinical tasks. Medical professionals also have more time and focus for their primary tasks, which leads to efficient practice execution.
- Want to protect yourself from payment defaults: Factoring can help dentists protect themselves from payment defaults by transferring the default risk to the factor.
- Want to offer your patients installment payments: Dental practices can offer their patients installment payments without abdominal pain, which helps to retain patients.
How much does factoring cost for dentists?
Each factoring process is subject to a turnover-related factoring fee, which is usually between 1.5% and 3%. This fee pays off quickly for dentists due to the reduction in staff workload and increased efficiency.
The exact amount varies depending on the provider and may depend, for example, on an agreed minimum order volume. In addition, optional additional services may incur further charges. This includes:
- Processing fee: This covers the collection and processing of receivables as well as monitoring incoming payments and, if necessary, sending reminders. Factoring providers often have a minimum write-off amount due to postage and letter costs that digital factoring providers do not have.
- Credit check: A credit check protects both you and the factor from payment defaults, but can be associated with additional costs.
Are there also disadvantages?
Factoring basically has hardly any significant disadvantages, except that it is of course not free of charge. Another potential disadvantage may be that some factoring offers are subject to certain conditions or restrictions, which could affect the flexibility of the dental practice.
What should dentists consider when it comes to factoring providers?
1. Understanding cost structure
Be sure to understand all cost components. Some providers try to hide small and initially “inconspicuous” cost items that later appear unexpectedly. To avoid this, read the terms of the contract carefully and ask again if necessary.
2. Specialized in the medical sector
In the best case scenario, the factoring company should specialize in the medical sector in order to take into account the specific requirements and sensitivities of this sector. This specialization ensures that all data protection regulations and regulations in the medical sector are met.
Consent forms, credit inquiries, and other relevant documents are automatically documented in the patient record to facilitate administration and ensure the security of sensitive medical data.
What is the situation with digital invoicing?
Nelly is currently the only digital factoring provider that, with cooperating banks as your contractual partner, also enables the digital transmission of statements and invoices. This is securely encrypted, increasing efficiency and maintaining the confidentiality of patient data.
2. Integrated interface with the PVS
An intelligent interface between Practice Management Software (PVS) and the factoring company is decisive. This interface makes it possible to automatically document declarations of consent and credit inquiries in the patient record, which reduces administrative costs and makes processes more efficient.
It also enables the digital transmission of statements and invoices, which saves time and minimizes errors. As already mentioned, this last function can currently only be implemented by Nelly as the only digital factoring provider for doctors.
3. Data protection aspects
Patients must be notified of the transfer of their data to the factoring company and must consent to this transfer. This requires a legally valid declaration of consent, which must be signed by the patient.
Factoring companies usually provide appropriate forms that meet data protection requirements and must be completed by patients.
Procedure: This is how factoring works in everyday practice
Although the information contained here can be derived from the previous article, we would like to summarize it here again for the sake of an overview.
In the day-to-day life of a dental practice, the factoring process is as follows: The financier takes over accounts receivable management and collects receivables. This means that patients receive their invoices directly from the factoring company and transfer the corresponding sum to that company's account. Before this process, patients sign a document in the practice that regulates the transfer of their billing information to the billing service provider.
Important to note: Despite these benefits, there can occasionally be confusion when patients receive invoices from unknown companies. However, this problem can be cleverly circumvented by using a full-service providers such as Nelly works together. Because with Nelly, you collect patient data as soon as they digitally record the patient so that patients are familiar with the practice the first time they contact the practice.
Nelly as a digital specialist in factoring for dentists
Nelly is the first digital factoring provider with cooperating banks as your contractual partner on the DACH market and also appeals to practices that have not yet been eligible for conventional factoring. At Nelly, there is neither a minimum turnover nor a minimum amount that practices must meet. Invoices are sent completely digitally after the invoices have been signed once.
Dental practices in particular benefit from Nelly's factoring offer. The benefits of billing with Nelly lie in the following points:
- Integration with your practice management system: The integration of Nelly into all PVS is seamless and enables the automatic transfer of bookings and withdrawals via an interface.
- Automated credit check: Nelly is able to automatically retrieve the patient's credit rating and then transfer this information directly to your PVS patient record.
- Digital invoice management: Patients can choose for themselves whether they want to receive their bill via SMS or email. They can also pay their bills directly via their smartphone in the patient portal, similar to online shopping.
- Real and fake factoring: Nelly enables factoring both with and without payment default protection.
- Toll-free installment payment: If required, you can offer your patients interest and fee-free installment payments over a period of up to 36 months.
- Reimbursement service: Nelly will communicate with the patient or the insurance company in case of objections and reimbursements.
Checking out with Nelly enables practices to:
- 90% time savings that must be spent on private billing, dunning, bookkeeping and administrative tasks
- 50% faster payments
- 20% lower transaction costs
- 25% fewer patient inquiries in practice
- 5% more treatments completed
In addition, Nelly offers a variety of other features that make everyday life easier for you and your practice team. This includes the complete digital management of documents and the recording of Anamnesis via QR code.
Conclusion: Factoring saves dentists costs, nerves and relieves practice staff
Factoring provides dentists with an effective solution for managing invoices and ensuring stable liquidity. This is particularly important in light of challenges such as delayed payments from patients and seasonal fluctuations in turnover.
Nelly's digital factoring offering offers dentists a variety of benefits, including an integrated interface with PVS, automated credit checks, and a toll-free installment payment option for patients.
By using Nelly, dentists can save costs, increase efficiency and relieve their practice team, which ultimately leads to improved patient care. Now you too can create a digital workflow in your practice. We advise It is free of charge and without obligation.
The personal names used in this article always refer equally to all persons. Dual naming and alternate names are omitted in order to improve readability.
What is factoring & how does it work?
Factoring is a financing instrument in which a company (in this case the dental practice) sells its receivables from customers (patients) to a specialized financial company (the Factor).
At factoring The factoring company immediately pays the dental practice a large part of the value of the receivables, usually between 70% and 90%. The remaining amount, minus a fee, is paid out as soon as customers pay their invoices.
That means: Dental practices don't have to worry about anything in claims management and get the majority of their patients' bills transferred to their account immediately after invoicing.
For which dentists is factoring worthwhile?
Factoring can be beneficial for a wide range of dentists, particularly those who:
- Struggling with payment delays: If the dental practice regularly has to wait for payments from patients or insurance companies to maintain its liquidity, factoring can help overcome this bottleneck.
- Aim for strong growth: Dentists who want to expand their practice and need additional financial resources to make investments or purchase new equipment can benefit from factoring by giving them immediate access to their claims.
- Want to reduce your administrative tasks: By outsourcing claims management to Factor, dentists can reduce their administrative burdens and focus more on their clinical tasks. Medical professionals also have more time and focus for their primary tasks, which leads to efficient practice execution.
- Want to protect yourself from payment defaults: Factoring can help dentists protect themselves from payment defaults by transferring the default risk to the factor.
- Want to offer your patients installment payments: Dental practices can offer their patients installment payments without abdominal pain, which helps to retain patients.
How much does factoring cost for dentists?
Each factoring process is subject to a turnover-related factoring fee, which is usually between 1.5% and 3%. This fee pays off quickly for dentists due to the reduction in staff workload and increased efficiency.
The exact amount varies depending on the provider and may depend, for example, on an agreed minimum order volume. In addition, optional additional services may incur further charges. This includes:
- Processing fee: This covers the collection and processing of receivables as well as monitoring incoming payments and, if necessary, sending reminders. Factoring providers often have a minimum write-off amount due to postage and letter costs that digital factoring providers do not have.
- Credit check: A credit check protects both you and the factor from payment defaults, but can be associated with additional costs.
Are there also disadvantages?
Factoring basically has hardly any significant disadvantages, except that it is of course not free of charge. Another potential disadvantage may be that some factoring offers are subject to certain conditions or restrictions, which could affect the flexibility of the dental practice.
What should dentists consider when it comes to factoring providers?
1. Understanding cost structure
Be sure to understand all cost components. Some providers try to hide small and initially “inconspicuous” cost items that later appear unexpectedly. To avoid this, read the terms of the contract carefully and ask again if necessary.
2. Specialized in the medical sector
In the best case scenario, the factoring company should specialize in the medical sector in order to take into account the specific requirements and sensitivities of this sector. This specialization ensures that all data protection regulations and regulations in the medical sector are met.
Consent forms, credit inquiries, and other relevant documents are automatically documented in the patient record to facilitate administration and ensure the security of sensitive medical data.
What is the situation with digital invoicing?
Nelly is currently the only digital factoring provider that, with cooperating banks as your contractual partner, also enables the digital transmission of statements and invoices. This is securely encrypted, increasing efficiency and maintaining the confidentiality of patient data.
2. Integrated interface with the PVS
An intelligent interface between Practice Management Software (PVS) and the factoring company is decisive. This interface makes it possible to automatically document declarations of consent and credit inquiries in the patient record, which reduces administrative costs and makes processes more efficient.
It also enables the digital transmission of statements and invoices, which saves time and minimizes errors. As already mentioned, this last function can currently only be implemented by Nelly as the only digital factoring provider for doctors.
3. Data protection aspects
Patients must be notified of the transfer of their data to the factoring company and must consent to this transfer. This requires a legally valid declaration of consent, which must be signed by the patient.
Factoring companies usually provide appropriate forms that meet data protection requirements and must be completed by patients.
Procedure: This is how factoring works in everyday practice
Although the information contained here can be derived from the previous article, we would like to summarize it here again for the sake of an overview.
In the day-to-day life of a dental practice, the factoring process is as follows: The financier takes over accounts receivable management and collects receivables. This means that patients receive their invoices directly from the factoring company and transfer the corresponding sum to that company's account. Before this process, patients sign a document in the practice that regulates the transfer of their billing information to the billing service provider.
Important to note: Despite these benefits, there can occasionally be confusion when patients receive invoices from unknown companies. However, this problem can be cleverly circumvented by using a full-service providers such as Nelly works together. Because with Nelly, you collect patient data as soon as they digitally record the patient so that patients are familiar with the practice the first time they contact the practice.
Nelly as a digital specialist in factoring for dentists
Nelly is the first digital factoring provider with cooperating banks as your contractual partner on the DACH market and also appeals to practices that have not yet been eligible for conventional factoring. At Nelly, there is neither a minimum turnover nor a minimum amount that practices must meet. Invoices are sent completely digitally after the invoices have been signed once.
Dental practices in particular benefit from Nelly's factoring offer. The benefits of billing with Nelly lie in the following points:
- Integration with your practice management system: The integration of Nelly into all PVS is seamless and enables the automatic transfer of bookings and withdrawals via an interface.
- Automated credit check: Nelly is able to automatically retrieve the patient's credit rating and then transfer this information directly to your PVS patient record.
- Digital invoice management: Patients can choose for themselves whether they want to receive their bill via SMS or email. They can also pay their bills directly via their smartphone in the patient portal, similar to online shopping.
- Real and fake factoring: Nelly enables factoring both with and without payment default protection.
- Toll-free installment payment: If required, you can offer your patients interest and fee-free installment payments over a period of up to 36 months.
- Reimbursement service: Nelly will communicate with the patient or the insurance company in case of objections and reimbursements.
Checking out with Nelly enables practices to:
- 90% time savings that must be spent on private billing, dunning, bookkeeping and administrative tasks
- 50% faster payments
- 20% lower transaction costs
- 25% fewer patient inquiries in practice
- 5% more treatments completed
In addition, Nelly offers a variety of other features that make everyday life easier for you and your practice team. This includes the complete digital management of documents and the recording of Anamnesis via QR code.
Conclusion: Factoring saves dentists costs, nerves and relieves practice staff
Factoring provides dentists with an effective solution for managing invoices and ensuring stable liquidity. This is particularly important in light of challenges such as delayed payments from patients and seasonal fluctuations in turnover.
Nelly's digital factoring offering offers dentists a variety of benefits, including an integrated interface with PVS, automated credit checks, and a toll-free installment payment option for patients.
By using Nelly, dentists can save costs, increase efficiency and relieve their practice team, which ultimately leads to improved patient care. Now you too can create a digital workflow in your practice. We advise It is free of charge and without obligation.
The personal names used in this article always refer equally to all persons. Dual naming and alternate names are omitted in order to improve readability.
Robert Adam
Author
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