Maryland-based VetBilling recently released a web-accessible, PCI-compliant platform that for the first time, allows veterinarians to offer in-house payment plans with minimal financial risk.
Veterinary hospitals will encounter a growing number of pet parents who need help paying for services in coming months, due to the financial impact of COVID-19. Under ordinary circumstances, about 40% of pet parents can turn to conventional third-party credit products for help.
But circumstances are far from ordinary.
Because many individuals will suffer a shortfall in income, they will be forced to use existing credit to manage household expenses – resulting in less available credit for veterinary care.As individuals become more highly leveraged, rising credit utilization ratios will negatively impact FICO scores. Veterinary practices will begin to see more credit declines than usual.While there are charitable organizations that offer grants for veterinary care, their resources will be stretched thin as they face increased demand for services, coupled with a drop in donations. They simply won’t be able to pick up all the slack.
As an alternative, veterinarians can now offer fully managed in-house payment plans to help financially strapped pet parents during COVID-19.
VetBilling was the first payment and receivables management company to introduce a cloud-based platform that allows veterinarians to extend in-house payment plans without amplifying their financial risk.
Pet parents sign a contractual agreement authorizing automatic drafts until their balance is paid in full. A robust risk assessment feature allows veterinarians to make informed decisions about extending credit.
Payment agreements can be set up remotely in accordance with current social distancing recommendations.