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Liens & Assignments
Lien Factoring
Selling a medical receivable (lien) to a funding company for immediate cash, at a discount to its face value.
Lien factoring — also called medical receivables factoring — is the sale of a provider's lien to a third-party funder in exchange for cash now, rather than waiting months or years for the case to settle. The funder buys the receivable at a discount and assumes the collection risk.
The real math. Factoring rates commonly run 12–18% depending on case quality, balance size, and the provider's historical recovery. Holding isn't free either: months of cost-of-capital plus the staff time to chase status and records can total 7–8%. The practical decision is usually case-by-case, not all-or-nothing.
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