Internet Banking Using Internet Only Banks

Internet Only Bank Advantages

Most people are familiar with Internet banking through their local branch office. Most traditional banks offer some form of online or Internet banking services. Fortunately you have another choice. You can sign up for an Internet only bank. Many people are choosing Internet only services because they are convenient, offer free bill paying online and usually offer far more free services than traditional banks do. Most for example offer free checking that is actually free (no hidden fees or conditions).

Most banks are able to pass cost savings onto customers when they operate in a virtual environment. Since the bank itself when operating online incurs fewer fees, most banks charge customers lower banking service fees. Other advantages of Internet only banking include:

– 24- Hour dedicated service and access to your account information.

– Unlimited check writing and use capability.

– VISA/ATM card capability.

– Possible high interest checking account availability.

Disadvantages of Internet Only Banks

There are some drawbacks of using an Internet only bank. For one you will have to pay an ATM fee since Internet banks won’t have a branch ATM you can use near your home. But keep in mind that almost all traditional banks also charge some form of ATM fee. In most cases you will also have to mail in deposits, unless you set up direct deposit. In other cases you may have to put in check requests several days before payments are due, which some may find tedious.

Fortunately the offerings vary from bank to bank. Your best bet is to shop around for a service that will offer you all the advantages of a traditional bank with more conveniences.

What Is Cash Flow?

Cash flow simply means the money that comes into and leaves a business or
household. Money flows into a business in the form of revenues and out through
the form of expenses. Money flows into a household in many forms. Are you
receiving money from a structured settlement or lottery? Those are incoming cash
flows. Do you owe money to anyone? Those are outgoing cash flows.

While owner financing can trace its roots much further back into history, it was the
1980s that really saw a new beginning in the Cash Flow Industry. Today there are
more than 60 income streams that can be bought and sold. An income stream is a
future series of payments. More technically, an income stream is a financial
obligation or debt that one party owes to another party.

How Can You Benefit from Cash Flow?

Individuals and businesses sell income streams for three basic reasons:

o Access — it may be a need to pay debt, settle a divorce, purchase a home,
take a vacation, finance a wedding, start a new business, etc. Whatever income
stream you currently have that you may need cash for immediately.

o Interest or Yield — as interest or yield opportunities arise that allow you
to make more money than your current investments, you may want to reallocate
money from existing income streams to new better-producing ones.

o Inflation — this eats away at the future earning power of your money.
You can sell your income stream to avoid the drop in real value over time.

Individuals and businesses buy income streams as a form of investing that often
produce better returns than they can obtain from more traditional sources.

Medical Receivables Financing

The Rx for Ailing Cash Flow

The current adverse financial structure of the healthcare industry has placed hospitals, medical groups, private practitioners and other providers in a perilous position. Cumbersome and bureaucratic third party billing systems with long time-to-collection waiting periods have resulted in inconsistent cash flows and limited capital for growth. Nationwide, two-thirds of physicians work in practices that are set up as small business. Payment cuts 18% over four years, together with soaring malpractice premiums and other overhead costs, have threatened to put such practices out of businesses. More than 50% of doctors have deferred plans to purchase much-needed new equipment, and 30% either have laid off staff or are planning layoffs in the near future.

What Factoring “Is Not:”

o A Loan – Factoring is the sale of your medical claims for services already delivered

o Offered By Banks – Factoring is not an asset-based loan, nor is it a debt facility similar to those offered by banks.

Why not simply pick up the phone and call a bank for a loan to get through the crisis? Many of you already tried that and have been surprised to find that the average practice may not have sufficient credit and assets with which to secure adequate working capital. Additionally, the traditional banking loan application and approval process is long and involved. Debt is created for the practice to repay, and personal guarantees are required. The practice becomes less desirable for resale or acquisition.

Unlike bank lines that can tie up all of your assets, factoring involves only your third party medical claims

o No collateral other than accounts receivables

o No financial guarantees

o Unlimited amount of dollars

Factoring provides working capital without adding debt to your balance sheet. There is no predetermined maximum limit. This working capital arrangement is not limited in amount as many bank products are nor is it subject to banking “regulations.”

Surveys of physicians have identified the following immediate needs:

The creation of solid dependable cash flow

Decrease in the reimbursement interval between the time service is provided and payment is received

Increase in the overall percentage of claims collected

Reduction in administrative costs

Ready availability of cash for new equipment, expansion of office space, the addition of new partners, and practice marketing

This “wish list” would be complete if access to this working capital could be created debt-free. The physician practice would then have the financial freedom to focus on business growth and patient satisfaction, instead of focusing on how to meet the next payroll or malpractice premium payment. Is such a solution possible? Fortunately, the answer is YES!

Afra AmirSanjari is the Principal for Peacock Capital. Peacock Capital specializes in solving the cash flow challenges of Small/Medium Businesses, Government Vendors and Individuals with innovative financial solutions by providing a network for securing operating capital.