Tweet

What is Healthcare Staffing Payroll Factoring?

Guest post by: Phillip Cohen

Article Overview: Healthcare staffing payroll factoring is the conversion of accounts receivable into cash by selling outstanding invoices to a factor at a discount.

What is Healthcare Staffing Payroll Factoring?

It's a practical option for healthcare staffing agencies that are unable to qualify for traditional bank financing in the early stages of business development. Moreover, healthcare staffing payroll funding is a great alternative financing option for agencies going through rapid growth. Specifically, this is a financial solution that gives agencies immediate cash to help manage operations more efficiently.

Some additional key concepts about factoring healthcare staffing payroll:

• It's a way to fill the gap between when your healthcare staffing agency staffs temporary employees and when your customers remit payment. What's more, healthcare staffing payroll factors can turn weeks or months into hours or days.
• Healthcare staffing payroll funding is based primarily on your customer's credit history, not yours. As long as your agency is staffing in creditworthy medical facilities, then your business is a good candidate for healthcare staffing payroll factoring.
• Financing healthcare staffing payroll is a quick and easy way to sustain your "business as usual" relationship with your customers. Your agency can continue to provide temporary workers to your customers with a set-term payment-However, when you utilize healthcare staffing payroll factoring, you no longer have to wait to be paid. Choosing to work with a payroll factoring firm permits your agency to easily obtain cash advances of 80% of the invoiced amount immediately.
• It's also one of the oldest methods of providing working capital. Dating back 4,000 years, payroll factoring has long been used as a feasible and easy way for businesses to establish and maintain a positive cash flow in order to cover expenses while also experiencing growth.
• It offers a chance to obtain cash without providing personal collateral or increasing interest expense. Furthermore, factoring healthcare staffing payroll is not a loan, so it will not "muddy up" your agency's balance sheet. When you work with a payroll factor, you do not accrue interest or penalties.
• Healthcare staffing payroll factoring provides an opportunity to build your company's credit. With adequate cash flow, you can use money from it to clean up your debts as well as pay overhead, salaries, taxes and invoices. This will improve your agency's credit history and make it easier to obtain credit from vendors and other financial institutions.

In summary, factoring your healthcare staffing receivables is a great long or short-term financing solution for small and mid-sized businesses. By working with healthcare staffing payroll funding company, your cash flow problems can be solved. This will give your agency both the time and money to focus on critical success factors -- operations, sales and growth.

Related Articles
  What NOT to Do When Picking a Healthcare Staffing Payroll Factor
  Busting Healthcare Staffing Factoring Myths
  How Can Medical Staffing Payroll Factoring Help My Agency?
  Healthcare Staffing Factoring Works For Agency Owners
  Top Three Common Mistakes to Avoid when Choosing a Nurse Staffing Payroll Factoring Company
  The Ongoing Nurse Staffing Payroll Funding Process
  Top Five Reasons to Use Nurse Staffing Account Receivables Factoring
  A How To Guide: Allied Health Staffing Factoring
  Recourse and Non-Recourse Nurse Staffing Accounts Receivable Factoring: What’s the Difference?
  Home Healthcare Factoring: The Right Funding Solution for Your Home Healthcare Agency
  PRN Funding Introduces Real-Time Web Communication
  Medical Staffing Companies - How to Qualify for Payroll Funding
  What to Tell Your Customers about Nurse Staffing Account Receivables Factoring
  Allied Health Staffing Factoring – A Financing Solution for Expanding Companies
  The Truth about Allied Health Staffing Invoice Funding
  Three Reasons Why Allied Health Staffing Agencies Should Factor Their Invoices
  Medical Staffing Invoice Funding: Tips for Managing Customer Fears
  What is Needed to Complete an Initial Nurse Staffing Account Receivable Factoring Transaction?
  How Will My Customers View Temporary Nurse Staffing Account Receivable Financing?
  Selling Medical Staffing in a Non-Buying World

Article Tags: factor healthcare staffing payroll, finance healthcare staffing payroll, healthcare staffing payroll funding



Related Forum Posts
Hat's off to you- - As an owner/operator, I wear many hats...especially when employees become ill, go on vacation or resign. Here's the hat's i've worn over the years: 1) Manager (skilled) 2) Salesman (very skilled) 3) Book keeper/ Accountant (somewhat skilled) 4) Publicist (somewhat skilled) 5) Payroll officer (skilled) 6) Receptionist (very skilled) 7) Secretary (very skilled)
Re: Hat's off to you- - [quote="BizLoanz4u":1j1xk9p5]As an owner/operator, I wear many hats...especially when employees become ill, go on vacation or resign. Here's the hat's i've worn over the years: 1) Manager 2) Salesman 3) Book keeper/ Accountant 4) Publicist 5) Payroll officer 6) Receptionist 7) Secretary[/quote:1j1xk9p5] Hi Michele, Would you be able to rate each of your job functions on a scale of "1 = generalist" to "10 = expert" and even which tasks you outsource? Thanks
Hi! - Hi everyone! I'm Laura from Platinum Staffing Solutions. Like the saying goes, "when the student is ready, the teacher will appear", I guess I'm ready! I'm looking forward to reading and posting/ meeting like minded entrepreneurs, this a first for me. I'm usually reading, studying or attending workshops locally, it's time to step up the game. I own PlatinumStaffingSolutions.ca, as I've mentioned, I started my own company over two years ago to be able to do what I know how to do with the integrity that lacked where I was previously working. It's a *people* centered agency that keeps the best interests of both the professional and the hiring company in mind. It's a tough industry, especially right now, any leads or referrals would be appreciated. Business-wise I'm very big into Napoleon Hill, Wallace Wattles, W. Clement Stone, Genevieve Berhendt, Florence Shinn - all of the late/greats; I'm wary of the modern writers but still like to read what applies to keep learning or see different perspectives; no one theory of success applies to every business out there. Hopefully you'll drop me a line and see ya' on the boards!
Seek Venture Capital & Funding - Hello, Greetings from India. I am Seeking Venture Capital for Offshore Software Company Start-up. Need advise along with Business Model Sample. I have a basic outline for an offshore company. 1. Technology - like Microsoft Dot Net, Java, LAMP 2. Talent Team - Found Good Technology Developers. 3. Where I can get the leads/potential customers - Leads have been identified who are willing to move forward offshore projects. 4. I do not have resources like funding. It is a very critical factor to me Industries: Manufacturing, Real Estate, Retail, Insurance, Distribution & Logistics, Healthcare, Industry Associations and Software Product Development, Agricultural Industries and Etc. Services: Offshore Software Development Company. Offices to be located: Hyderabad, Andhra Pradesh, India and USA. Products/Services/Applications in areas like POS & Billing, Sales & Distribution, Production Planning, Material Management, Inventory Control, Plant Maintenance, Purchasing, Accounting and Logistics. Dynamic Web Programming with Database Driven Content Management Systems, Online Stores for E-Commerce, B2B Solutions, Community Portals, Website Redesign and Development, Custom ERP with Enterprise Wide Functional Modules such as Marketing, CRM, Accounting, Inventory Control, Sales & Distribution, Production Planning, Purchase & Stores, Logistics and Supply Chain. Seek your further questions and help. Thank you, Best Regards, Jayapratap.
Different Types of Funding - Finance for business can be obtained through a number of different sources. Let's review some of those channels to help you decide what's right for your business needs: Grants There are over 930 different EU and UK grants and loans available from over 100 issuing bodies. This is the cheapest form of finance and an important part of the funding package that companies and individuals need. We can help you find your way through this maze. Technology Micro Projects: 50% of eligible costs up to £20,000 Research project: For a technical and feasibility study of an innovative idea for new technology 60% of costs up to a grant of £75,000. Development project: For development up to pre production 35% of costs up to a grant of £200,000 Developing an innovative idea: valuable for small companies and individuals at the start of a technical project: 75% of costs of hiring a mentor and consultants. Export To start exporting or moving into new markets grants of 50% of costs up to £20,000 each. Training and Education Knowledge Transfer Partnerships, Achieving Best Practice in Your Business, Investors in People Modern Apprenticeships New Deal for various grants. Environment BOC Foundation for the Environment: 25% to 50% of Project cost, typically £20,000 to £100,000 Clean up Fund: Emission reducing equipment up to 75% of cost Community Chest Fund: Up to £25,000 for projects near active SITA sites High Impact Fund: £150,000+ for larger projects near SITA sites Assisted Areas Regional assistance grants of between 10 and 35% for capital expenditure in less favoured areas of the UK. Loans Loans are an excellent source of finance if you have suitable security to borrow against or a reliable earnings stream. This needs to be planned and presented well to obtain funds. Credit cards Provides up to 56 days free credit if you play the game! Overdraft Banks are surprisingly supportive when presented with a well thought through plan and competent management. Bank Loans Lenders tend to look for a good business plan and security. Typically the loan is approved by a centralised back office function rather than the person you meet. Terms and rates depend upon the risk. Repayments can be very flexible to meet your specific needs. Mortgages These can include flexible repayment terms to meet your business needs. This can even be incorporated into your overdraft finance so that you have one flexible account for both personal/ business mortgages and overdraft Small Firms Loan Guarantee Scheme Up to two years trading: Up to £100,000 Over two years trading: Up to £250,000 However these are difficult to obtain and are a loan of last resort. Export Guarantee Scheme This is government backed insurance against appropriate export documentation. Mezzanine This is a halfway house between loan and equity. It can be an innovative way of raising funds for the more established business. Mostly for expansion capital. Equity This is not as easy as the papers would have you know. Only 1% of business plans received by Venture Capital Funds are successful. However, a good business proposition consisting of a strong demand for the product or service, management track record and a sound financial plan will enhance the chance of success. Business Angels These are high net worth individuals who are successful businessmen looking for investment opportunities. They can provide both time expertise and money. Typical investment size is £25,000 to £250,000 but can go as high as £2m for the right opportunity. Exit within 3-5 years. Venture Capital These are investment funds seeking high rates of return. However typically investments are over a million pounds. Some funds are targeted at lower amounts depending upon the sector and region. These funds are looking for exponential capital growth over 3-5 years. Asset backed finance This can cover machinery, sales invoices even sales orders. It can be a very flexible source of finance to the growing business Leasing This will cover your capital expenditure and spread the cost over a three to five year period. It is particularly useful if you do not have taxable profits to maximise your capital allowances. Sale and leaseback of a property you own is another good source of funds. Factoring Factoring offers a sales ledger administration and debt collection service. Up to 95% of an approved sales invoice is paid within 48 hours, quicker if required. Credit protection is also available to protect against a bad debt. The Factor will own and place a first charge over the book debts and they might also take other charges, depending upon the strength of the financial information. Invoice discounting Invoice Discounting can be Confidential or Disclosed; it depends upon the strength of the financial information. The service is the same as Factoring, except that the sales ledger administration and the debt collection is the responsibility of the client and not the Factor. Pre payment of the approved sales invoice is still up to 95% and the factor will still have a first charge on the book debt and therefore own the debt. This service can also have credit protection cover. All sales invoices need to be for a business to business debt, and some proof of delivery is generally required. Trade Finance This is funding provided against stock purchases, signed contracts and orders whereby the funder will prepay a certain percentage of the value Pension fund It may be possible to use your pension funds for a loan back to the business What do u think about it?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

10 Steps to Excelling at Franchise Sales

If I Were Starting A Network Marketing Company...

Quick Tips on Buying a Business

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.