healthcare.

Healthcare Staffing Factoring Works For Agency Owners

Oftentimes, these agencies can’t qualify for traditional financing because banks look at a company’s past—aka: a profitable operating history—in order to extend credit. However, healthcare staffing funding companies are more concerned with the agency’s future—aka: its growing accounts receivable—in order to extend credit. Let’s take a look at how one healthcare staffing agency used invoice factoring to improve its cash flow.

Slow Payments Hinder an Agency’s Growth


A new healthcare staffing agency was successfully staffing LPNs and CNAs at a handful of local hospitals. Since the company’s inception six months ago, it had gained an outstanding reputation for placing the most qualified and hard-working nurses. Even though the healthcare staffing agency was a popular choice, the owner kept turning down new clients because he was struggling to make payroll and pay taxes. Simply put, payments coming in were much slower than the agency owner had originally anticipated, and his cash flow was out of sorts.

Limited Financing Options Available

Because this staffing company hadn’t been operating for very long, traditional lenders didn’t feel comfortable lending to the owner. Moreover, the entrepreneur’s personal credit was not that good, so he wasn’t able to qualify for a business credit card either. Frustrated with his lack of financial options, the agency owner started asking some of his successful colleagues how they surpassed the financial hurdles in the beginning of their businesses. A few suggested healthcare staffing financing, so the agency owner started researching factoring companies. Ultimately, the business owner chose to apply with a factoring company that specialized in factoring healthcare staffing receivables.

Healthcare Staffing Factoring Helps Balance Agency’s Cash Flow

The business owner was happy with the ease and speediness of the healthcare staffing factoring application process. Within a week, the he sold his first batch of invoices and had plenty of cash on hand to cover payroll and taxes for the rest of the month. The agency owner continues to factor invoices every 2 weeks to maintain a positive cash flow. To date, he’s been factoring for 6 months, and he’s never had to turn down another contract.

Having access to cash within hours instead of waiting months to be paid saved this business owner’s agency. Healthcare staffing factoring is an excellent way for business owners going through growing pains to turn their receivables into cash. Factoring firms are known to approve entrepreneurs with limited operating histories because they’re more concerned with the company’s potential to earn.

Author:.

PRN Funding, LLC is an extraordinarily focused niche player in the healthcare invoice funding market place. Through a process known as factoring, PRN Funding provides business owners with the financial resources needed to grow and effectively compete in the industry. With no minimums or fixed terms, PRN Funding (www.prnfunding.com) provides healthcare companies with flexible and immediate access to capital.

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