Top Five Reasons to Use Nurse Staffing Account Receivables Factoring
Receive cash for your nurse staffing receivables within 24 hours or less.
Stop waiting 30, 60 or 90 days for your invoices to be paid. With nurse staffing account receivables factoring, your agency can receive cash the same day you invoice. Typically, agency owners send copies of their invoices and signed time sheets to the factor electronically (via email or fax), at which point the factor verifies the shifts were completed and then it will deposit anywhere between 70-90 percent of the face value of the invoice directly into the agency's designated bank account.
2. Add working capital to your business without increasing debt. When a nurse staffing agency decides to use factoring services, the company's owner has the ability to increase his/her cash flow without a taking out a business loan. In addition, in most cases, there is no interest, no origination fees, no closing costs, and no long-term commitments involved with account receivables factoring.
3. Relieve stress related to poor cash flow. Nurse staffing account receivables factoring provides a reliable cash flow stream in order to meet business obligations, such as weekly (or in some cases, daily) payroll as well as quarterly payroll taxes. Having enough cash on hand to deal with these ever-present financial responsibilities takes the stress off of the nurse staffing agency and allows him/her to focus on more important things - like growing the business.
4. Reduce overhead costs associated with collections. There is no need for a nurse staffing agency owner to hire a specific collection manager when working with a nurse staffing account receivables factoring firm. Most factors have designated departments and individuals to take care of the collections process, which frees up the agency's time and resources to focus on other aspects of running the company.
5. Funding is based on the financial strength of your customers. Most business owners are relieved to discover that nurse staffing account receivables factoring is based on the financial strength and stability of their customers rather than their own personal FICO score or business credit score. In general, factors are more concerned with the healthcare provider's creditworthiness rather than the agency's because it's the provider who remits payments to the factoring firm.
Clearly, there are a number of benefits that nurse staffing account receivables factoring offers staffing agency owners in addition to easing financing worries. However, nurse staffing agencies typically factor their invoices when they are up against a cash flow squeeze and slow-paying customers. Regardless of the underlining reasons to look into factoring, the one thing that remains the same is that it's an excellent alternative funding arrangement for nurse staffing agency owners