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A factoring company advances funds to your business based upon the dollar amount of your company's outstanding account receivables. With a quality factoring firm, you no longer have to wait to receive money owe

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

d to you by clients. Each accounts receivable factoring firm may charge different fees, though. Here are the high level questions to ask each company to find the best situation for your firm.

Ask the follo

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

wing questions of your prospective factoring companies:

1. Ask each invoice factoring company how they determine fees to spot the best deal.

The fees that you would pay to accounts receivable facto

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

ing companies are based on the financial strength and credit worthiness of your customers. Specifics include:

How often you bill your customers,
how long your customers have been in business an

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

how quickly your customers pay your invoices.

2. Ask invoice factoring companies for a favorable advance rate and quickly increase your working capital.

When working with a factoring f

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

rm, you will submit outstanding invoices to them. They will then provide your business with cash based upon your "advance rate." Customary advance rates range from 75% to 90%, which means you would receive bet

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

ween $750 and $900 for each $1,000 of outstanding invoices submitted.

3. If an invoice factoring company offers you a "flat fee rate" ask about the implications and make the right choice for your business.
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
>

While flat fees may seem less complicated, the end cost can be substantially higher. With a flat-rate fee, the cost is the same whether the receivable is out for 10 or 60 days so, unless most receivables are
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
out 45-60 days, the overall cost makes this type of rate more expensive.

4. Ask an invoice factoring company these questions about contract terms to avoid costly termination fees:

Is there a
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
contract term,
how long would my contract term last,
is there an early termination fee,
is my contract automatically renewed if I don't cancel in writing and
if so, how much advance noti
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
ce to cancel do you require?

5. Not all receivables factoring companies are alike: ask potential partners if they work with all clients.

Some receivables factoring companies, for example, will
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a
not fund companies with a high concentration, i.e., if their business is dependent upon one or two clients. Other companies do consider clients with concentration and they usually examine risk levels to determi
dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod
e a rate.

6. Make a savvy financial decision: ask about specific fees charged by receivables factoring companies.

Ask prospective factoring firms about the cost of the:

Application fee,
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
i> Due diligence fees,
Credit reporting fees,
Background or lien search fees,
Factoring company lock box fees,
Minimum monthly volume fees,
Charges to add a new receivables factorin
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
client,
Early termination fees from receivables factoring contract,
Upfront advance fee and then an interest fee,
Fee for same day advances,
Monitoring fees,
Automated clearing h
t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
ouse (ACH) fees and
Wiring fees.

Some invoice factoring firms have a flat rate fee that includes all services, except for the monthly Internet access report fee.

7. Ask how factoring companies
ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust
alculate interest charges and choose the most favorable.

Some factoring firms begin charging interest as soon as an invoice is issued. Under this system, you could end up paying several more days' worth o
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
f interest than if your factoring company began charging interest on the date you receive funds. Also ask factoring companies if you can select what day of the week to receive your funds and pick what's best fo
.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
your company.

Select a quality invoice factoring company now: get immediate funding to grow your business.

Now that you have the tools and knowledge to evaluate factoring companies, you can decide whic
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip
h factoring company will grow your business the fastest. Don't miss out on lucrative business opportunities because of poor cash flow any longer! Contact companies and get your factoring loans to get growing now

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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Digg It - Factoring Companies: Learn the Top 7 Financial Questions to Ask to Choose the Best One for Growth

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