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A How To Guide: Allied Health Staffing Factoring

Written by: Phillip Cohen

Article Overview: There are many allied health companies (i.e. respiratory therapist staffing agencies, radiology tech staffing firms, and physical therapist staffing agencies) that can greatly benefit from all that allied health staffing factoring has to offer. Namely, growing their companies without having to worry about how long it will take for their customers to pay them.

A How To Guide: Allied Health Staffing Factoring

The notion of selling allied health receivables to a factoring firm may sound like a difficult concept to understand, but in reality, nothing could be further from the truth. In fact, there are many allied health companies (i.e. respiratory therapist staffing agencies, radiology tech staffing firms, and physical therapist staffing agencies) that can greatly benefit from all that allied health staffing factoring has to offer. Namely, growing their companies without having to worry about how long it will take for their customers to pay them. In order to help clear up any healthcare factoring misconceptions, this article will explain the allied health staffing factoring process step-by-step...

1. The customer (i.e. hospital, medical clinic, nursing home, etc.) approaches an allied health staffing company to fill an open shift.

2. If it's a new customer, the allied health factoring firm performs a credit check on the medical facility and if approved, determines a line of credit for that customer.

3. The allied health staffing firm provides the medical facility with a temporary employee to fill the shift.

4. The agency issues an invoice to the medical facility for the shift, making sure to include the factoring firm's remittance information directly on the invoice.

5. At any time after the invoice has been issued, the allied health company submits a schedule of accounts receivable for purchase to the factoring firm. In addition to the invoice, this schedule also includes any supporting documentation (i.e. signed time-sheets).

6. The invoice funding company will contact the staffing agency's customers from time to time to verify that they are actively using temporary allied health employees from the agency. Upon verification of the invoices, the factor will electronically advance funds within hours.

7. Per the remittance information included on the factored invoice, the medical facility sends payments directly to the allied health staffing factoring firm's lock box.

8. Upon receipt of the payment, the factor remits the difference (reserve) between the collected amount and the advance to the agency, less the discount fee.

Selling allied health staffing invoices to a factor improves the agency's cash flow, allowing business owners to meet payroll, taxes and other monetary obligations in a timely manner. Thanks to this article, allied health business owners are able to easily familiarize themselves with the factoring process. The next step in improving their cash flow is to start researching which allied health staffing factoring firm will best meet their company's cash flow needs.

Related Articles
  Three Reasons Why Allied Health Staffing Agencies Should Factor Their Invoices
  How to Choose an Allied Health Staffing Funding Company
  Allied Health Staffing Factoring – A Financing Solution for Expanding Companies
  Recourse and Non-Recourse Nurse Staffing Accounts Receivable Factoring: What’s the Difference?
  What NOT to Do When Picking a Healthcare Staffing Payroll Factor

Article Tags: allied health staffing accounts receivable funding, allied health staffing factoring, allied health staffing funding, allied health staffing invoice funding, prn funding



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