A Compounding Pharmacy in the Southeast billing about $50,000 per month saw its business growing in geometric proportions. Before long he was billing over ½ million per month. Naturally he had to increase cash flow to stock up on compounding components, pay his FedEx bill (which was vital to his business since he shipped using that vendor only) and to pay commission to his outsourced sales force which were due every Monday for transactions completed the previous week.
Factoring put this client on a weekly cash flow even though payment time was always between 30 and 45 days. This allowed the pharmacist to meet his inventory obligations and to pay bills. More importantly to pay his business development team which was responsible for the tremendous growth he was experiencing.
Factoring is not the cheapest way to get cash flow but it is the most flexible and in this banking environment loans are certainly not easily obtained. Xynergy Healthcare Capital specializes in factoring healthcare providers and has a special interest in compounding pharmacies.
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