Is there a downside to purchasing accounts receivable?
A. More of a tradeoff than a downside. What occurs is that you gain the quick influx of cash and pay for it with a slight loss in the total accounts receivable collected over the long term. The ability to use the funds while otherwise waiting for payment from third party payors, places you in position to better pursue improvements to your practice–be they additional personnel, increased advertising, taking advantage of cash discounts, improving your credit rating, etc. All these steps would be impossible without the cash realized from this process.
