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Why Do Healthcare Providers Choose Chello Over Receivables Factoring?


Managing cash flow is one of the biggest challenges healthcare providers face. Dealing with delayed insurance reimbursements, inconsistent patient payments, and rising costs? These challenges can make it tough for practices to stay on track or get ahead.

Many healthcare practices have traditionally turned to receivables factoring to address these issues. However, this process, which involves selling outstanding invoices to a third party for immediate cash, comes with drawbacks that often outweigh its benefits.

Chello offers a better solution: business credit lines for medical practice tailored to meet the unique financial needs of private practice doctors. Here’s why providers are choosing Chello over receivables factoring for their medical practice funding.

What Is Receivables Factoring?

Receivables factoring involves selling unpaid invoices to a third party (a factoring company) at a discount in exchange for immediate cash. While this may seem like a quick fix, it comes with several limitations:

  • Loss of revenue. Factoring companies charge a percentage of the invoice as a fee, reducing your income. For example, on a $2,500 invoice with a 2% monthly fee, they take $50 each month. If the patient takes three months to pay, you lose $150.
  • Lack of transparency. Many factoring agreements include hidden fees, such as account setup, monthly maintenance, or early termination charges. These unexpected costs make it harder to predict the total expense.
  • Loss of control. Sometimes, the factoring party takes over the collections process, which can strain patient relationships and harm your practice’s reputation. Patients may feel pressured by third-party collectors, leading to frustration and a breakdown of trust.
  • Delayed access to full payments. Factoring companies often withhold a portion of the invoice, known as a reserve until they collect full payment from the patient. This delay limits the immediate cash flow you need and adds uncertainty to your finances.

Chello: A Better Alternative for Medical Funding.

While factoring may provide short-term cash flow, its long-term costs can limit the growth and stability of your medical practice. For healthcare professionals looking for a more reliable option, there’s a better way forward—medical practice funding from Chello.  

How is Chello different from factoring? Here’s a breakdown of how our medical business credit lines for doctors work and why it’s better for your practice: 

FactorExplanationBenefits To Your Practice
Transparent, Predictable CostsChello’s credit line offer transparent pricing with no hidden fees and predictable weekly payments.Easily plan expenses and avoid surprises with consistent costs.
Retain Control Over RevenueChello keeps collections within your practice, avoiding the need for third-party involvement that can disrupt patient relationships.Maintain patient trust and protect your reputation.
Flexible Access to FundingCredit lines aren’t tied to invoices; funds can be approved in as little as 24 hours.Quickly address payroll, equipment upgrades, or emergencies.
Support for Practice GrowthFunding can be used for improvements, marketing, or other growth initiatives with no lost revenue.Identify cash flow issues early, invest in growth, and improve financial health.

Why Healthcare Practices Trust Chello

Healthcare practitioners choose Chello because it combines financial reliability with tools tailored to their needs. Professionals in specialties like primary care, dental practices, and physical therapy trust our platform for these reasons:

  • Backed by a fully insured lender. Chello is supported by OFG Bancorp, an FDIC-regulated bank. You can trust that your funding comes from a secure and reliable partner, giving you the confidence to make important financial decisions with peace of mind.
  • Specialized experience in healthcare. With years of experience in healthcare funding, Chello understands the challenges unique to medical practices. From managing delayed reimbursements to handling fluctuating patient payments, the platform delivers solutions designed to help practices maintain stability and achieve their goals.
  • Cash flow predictor dashboard. Chello’s cash flow predictor tool offers a 90-day forecast of your financial performance. It syncs with claims and banking data to help you anticipate low cash flow periods, decide when funding is necessary, and allocate resources for payroll, equipment, or practice growth. 

Choose Chello for Your Medical Practice Funding

If considering receivables factoring, why not explore a smarter, more sustainable alternative? Chello’s medical business credit lines provide the transparency, flexibility, and support you need to thrive in today’s competitive healthcare environment.

With Chello, you’ll gain access to quick, reliable funding without compromising control over your revenue or patient relationships. From real-time financial analytics to flexible funding options, Chello helps you take care of the business side of the practice so you can focus more on delivering exceptional patient care.
If you are ready to improve your cash flow and support your practice’s growth, apply for medical practice funding today.


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