Invoice funding is a great financing tool for allied health staffing agencies because it bridges the gap between when agency owners invoice a medical facility and when that facility pays. Unfortunately, some allied health staffing business owners are still hesitant to take advantage of all that invoice funding has to offer because of all the misinformation circulating out there. Allow me to debunk some of those myths about allied health staffing invoice funding.

Myth #1: Allied Health Staffing Invoice Funding is an Expensive Financing Option

Truth: First and foremost, an invoice funding fee (i.e. a factoring fee) is not the same thing as an annualized interest rate. For example, an allied health staffing invoice financing company may charge 3% per month, but that’s not the same thing as 36% APR. Rather, an invoice funding firm’s fees stop the day an invoice is paid. Furthermore, allied health staffing agencies can’t and won’t wait 12 months to receive payment for their staffing services. Most agencies agree to payment terms somewhere between 30 and 45 days. So in reality, allied health staffing invoice funding is not costly.

Myth #2: Allied Health Staffing Funding Companies Require a Long-Term Commitment

Truth: Unlike a traditional line of credit through a bank loan, most allied health invoice factoring companies do not require a long-term commitment. In fact, some invoice funding companies only ask for a six month commitment, while others do not require a fixed-term at all.

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