So, how exactly does it work?
Account Receivable Financing Process
- A pharmacy bills a third-party payer (i.e. Medicaid/Medicare, private insurance carriers, etc.) for the sale of drugs.
- The pharmacy then sends a copy of the claims to us.
- Once a claim has been submitted (that is, after we have scrubbed the claim to check the actual contractual amount due), we then purchase the pharmacy’s invoices and advance up to 80% of the expected net collectible value. (Funds are typically deposited directly into the pharmacy’s bank account within 24-72 hours.)
- We use the remaining 20% (reserve) as a buffer in case some of the pharmacy’s bills do not get reimbursed or if they were billed incorrectly.
- Our AR Follow-Up team follows up on every unpaid bill. The decisions to write off or take the case to the court will be taken by the pharmacy.
- The reserve, less the accounts receivable factoring fee, is released back to the pharmacy after payments are received.
Policies
- An e-contract is signed by the parties
- A bank sub-account to be jointly held by the lender and the client is set up
- It has to be ensured that the TPA directs payments to the new bank account
- The minimum amount to be sanctioned is $30,000 per month
- Claims are evaluated as per the rules laid out in the contract
- Rate of discount: Please contact Tranquilmoney Sales
Eligibility Criteria
- The pharmacy must either have a proven credit history or a personal guarantee accompanied by an audited net worth certification.
- The pharmacy should have been in business for at least 3 years.
