This article is sponsored by One Claim Solution.
C&R’s State of the Industry Report for 2022 unearthed the biggest challenges that cleaners and restorers faced last year. Results revealed that (1) dealing with insurance carriers, (2) maintaining cash flow, and (3) hiring are the main things keeping contractors up at night.
We recently wrote an article about these challenges and outlined a few ways contractors can deal with their nightmares. Here are two things we can say in summary:
“With so many restoration firms indicating a strong desire to transition away from TPA programs, we predict that this will create both opportunities for firms that optimize for TPA work and create significant pressure on TPA providers to find ways to change aspects of their operation that are driving so many restorers to look elsewhere for their revenue needs.” (C&R State of the Industry 2022, Chapter 2)
At One Claim Solution, we work with restoration contractors who are not overly reliant on TPA work. Without the constraints of TPA contracts that impose pricing, service level, and operational requirements of the carriers, we are best able to optimize insurance billing and collections. Contractor’s can rest easier knowing our well-trained claim advocates deal with carriers on their behalf to justify their insurance invoices.
As C&R highlights, the vast majority (~80%) of contractors wait more than 30 days to get paid in full after a job is complete, and for a little more than half of contractors, the wait time is greater than 45 days.
If you are trying to invest in your business for either maintenance or growth, having receivables out for 45, 60, or even 90+ days will make it really hard once you factor in operating expenses like payroll. Shortening the cash flow cycle by accelerating payment from carriers will allow you to access your capital more quickly which in turn will allow you to readily cover expenses and make investments in your business.
At One Claim Solution, we help our clients overcome these challenges. We are experts in insurance billing and work directly with carriers on the behalf of contractors to get their invoices processed quickly and effectively. Along with getting paid in ~32 days, all of our clients get to offload the hassle of dealing with carriers to get paid. Two birds with one stone, some might say.
For further insights on how we can help contractors optimize cash flow in 2023, be sure to check out our article C&R Report: Carriers and Cashflow Keep Restorers up at Night.
If you would like to meet in person, come visit us at INTRConnect booth #511 later this month. We look forward to meeting you and answering any questions you may have!