PRN’s August Invoice Factoring Bulletin

Check out some of PRN Funding’s most recent factoring transactions:

A Nurse Staffing Agency Brings on a New Client
This nurse staffing agency owner was ecstatic when she heard that she had won a contract with a local healthcare network. Being an approved nurse staffing vendor in the system meant that she had the ability to fill shifts in five new facilities. The only problem with this growth opportunity is that in order to become a part of the network, the Alabama staffing agency owner had to agree to 60-day payment terms. She didn’t want to walk away from the opportunity, but she also knew that she would not be able to float payroll for that long.

The business owner remembered a postcard she had received earlier that month from PRN Funding, LLC, an accounts receivable factor who specializes in funding nurse staffing agencies likes hers. She dialed the toll-free number and within minutes was connected with a factoring specialist. After a brief interview over the phone, the agency owner realized that PRN Funding was presently accepting payments from the healthcare network, so she was pre-approved for funding. She factored her first invoice two weeks later and hasn’t had to worry about meeting payroll since.

A Private Duty Home Care Agency Gets Paid Quicker
Providing in-home private duty services and being reimbursed by a state’s Medicaid Waiver program has its pros and cons. On the plus side, state dollars are guaranteed to be paid, but one big drawback is it can take a month or longer to receive those funds. As her client list increased, the owner of a home care agency in Massachusetts was having difficulty adjusting to the state’s new invoice approval process. In short, it meant that the home care agency owner would have to wait 30 days to receive a check instead of the historical two-week turnaround time.

A month before this change in the invoice approval process was to take place; the agency owner contacted PRN Funding because she saw one of their posts on a social networking site. She was relieved to know that PRN Funding was already very familiar with various states’ Medicaid Waiver programs. At the conclusion of her initial conversation, the private duty agency owner filled out a factoring application. The following week, she factored her first monthly invoice and received cash the same day.

A California Healthcare Staffing Business Finally Opens its Doors
Without tangible collateral or a profitable operating history, this California healthcare staffing agency owner was unable to qualify for a line of credit at a bank. He found PRN Funding’s Web site late one night when he was researching small business financing solutions. The entrepreneur submitted an online application, and received a call from a healthcare staffing factoring specialist from PRN the next morning.

Within a week, PRN Funding had approved the agency owner’s first two clients, so he was finally able to start placing employees. The following week, the healthcare staffing business owner factored his first invoice, which provided him with instant working capital to pay his payroll taxes and meet his first payroll.

Click here for more information on PRN Funding’s accounts receivable factoring services.

NPDA Opposes Mandating Overtime for In-Home Companion Caregivers

Congresswoman Linda Sanchez (D-CA) introduced the Direct Care Workforce Empowerment Act last week. According to the National Private Duty Association’s (NPDA) blog, the association’s executive director, Kim Stoneking, issued a statement sharing the Act’s pros and cons with its member-base:

“NPDA supports some of the goals of the Direct Care Workforce Empowerment Act…NPDA member companies are committed to hiring and fielding a trained professional workforce of in-home companion care workers. NPDA also supports payment of at least minimum wage to in-home companion caregivers.”

However, “NPDA opposes mandating overtime for in-home companion caregivers” for the following reasons:

In some cases, caregivers spend the night in the homes of their clients. Making those overnight hours subject to overtime pay, many clients would not be able to pay for such a service. In addition, many seniors/people with disabilities usually prefer to have the same caregiver attend to their needs. “Restricting a caregiver’s work hours to no more than 8 hours/day or 40 hours/week could upset these essentially personal relationships, causing the senior/person with disability to have to settle for less care than they need, or to deal with more caregivers than they prefer.”

Click here to read more of NPDA’s thoughts on working with Rep. Sanchez and the Direct Care Workforce Empowerment Act.

Healthcare Reform – 1099 Nightmare for Small Businesses

Last week, BusinessWeek published an article entitled: Health-Care Bill Surprise: 1099 Nightmare, and we thought the small business owners who read The Factoring Blog should be aware of its contents.

In essence, the article says: Small business owners should be aware of page 737 of the recently-approved healthcare reform bill, as it contains a three-paragraph provision, inserted by Democrats on the Senate Finance Committee to help offset the cost of the bill. In a nutshell, this insertion requires companies to report to the IRS payments of more than $600 a year to any vendor. The intent is noble: to capture $2 billion or more a year in taxes on income that currently goes unreported by contractors and small businesses.

Business advocates fear that the new rule will create a massive paperwork headache for small businesses because come 2012, the new rule will expand 1099-MISC reporting to include payments to companies, and for goods as well as services.

Read more here: Health-Care Bill Surprise: 1099 Nightmare.

2010 NPDA Conference Wrap-Up

PRN Fundings Booth at 2010 NPDA
PRN Funding's Booth at 2010 NPDA

Last week, PRN Funding traveled to Philadelphia, PA for the 2010 National Private Duty Association’s (NPDA) Conference.

It was the first time that PRN Funding was invited to exhibit at the Conference, and overall, it was a huge success for the private duty factoring agency.

Members of the PRN Funding team had the opportunity to speak with a number of home care agency owners, and explain the benefits of factoring Medicaid and other state agency receivables.

In addition, the private duty invoice funding experts donated a Flip Camcorder as a door prize, and the lucky winner was Antonio Del Valle of
Focus Home Healthcare. PRN Funding also held an in-booth drawing for a iPod Shuffle. The winner was Steve Rakoczy of Liberty In Home Care.

PRN Funding looks forward to exhibiting at the 2011 NPDA show next March in Las Vegas, NV.

Looking for an Article on Factoring?

Have a question about invoice funding that hasn’t already been addressed on The Factoring Blog? Mosey on over to PRN Funding’s Web site, where healthcare business owners and cash flow factoring professionals can find a wealth of information.

PRN Funding’s president, Phil Cohen, has been busy writing various articles about factoring over the last few months. Have you been keeping up? Check out the Factoring Industry News section of our web site for his most recent contributions.

Choose from article topics like…

  1. Comparing Bank Loans to AR Factoring
  2. Top Five Reasons to Factor
  3. Factoring Fees Defined
  4. Ways to Secure Funding in a Bad Economy
  5. Benefits of Home Care Factoring

Happy browsing!

PRN to Introduce Home Care Factoring to NPDA Show Attendees

Since Health Decision’s Annual Private Duty National Conference and Expo in Las Vegas was such an exciting show for PRN Funding, the private duty factoring firm announces that it will also be exhibiting at the National Private Duty Association’s 2010 Conference in March.

President, Phil Cohen, and Marketing Manager, Nikki Flores, will be talking with home care business owners in the exhibit hall at the Sheraton Philadelphia City Center Hotel March 10-11. In addition to discussing the benefits of home care factoring, business owners are invited to stop by the booth and enter for a chance to win a Flip Mino camcorder or an iPod Shuffle.

Click here to read the official press release about PRN Funding Exhibiting at NPDA.

PRN Funding’s December Funding’s Bulletin

As many of The Factoring Blog’s readers already know, PRN Funding provides accounts receivable factoring to healthcare vendors such as temporary nurse staffing agencies, medical transcription services and medical billing and coding companies and most recently, private duty home care agencies.  By purchasing these companies’ invoices, PRN Funding provides the cash needed to sustain and grow a health care business.  We are pleased to announce some of our most recent fundings:

A Home Care Agency No Longer Has to Wait for the State to Pay
This Chicago-based home care agency owner had been staffing sitters and home care aides into peoples’ homes since the beginning of the year, getting paid routinely in every two weeks by the state of Illinois. However, as the fourth quarter approached, she watched her receivables age out.

Worried that the lag in her payments would eventually start affecting her ability to meet payroll, the agency owner Googled “home care factoring,” and clicked on the first search result-PRN Funding’s home care factoring page. After ten minutes of perusing the site, the agency owner called 866.776.5407, and was immediately connected to a home care factoring specialist. Two weeks later at the beginning of the fourth quarter, the agency owner presented PRN Funding with the first batch of invoices and had funds deposited directly into her account within hours.

An Ohio Medical Billing Company Gains News Business
Until recently, this Columbus-based medical billing entrepreneur had only been providing billing services for a handful of independent doctors in central Ohio. All it took was for one of those doctors to mention the medical billing vendor’s capabilities to an associate, and the billing company had the opportunity to sign on a medical clinic as a new client. He was ecstatic about the new business opportunity; however, there was one major problem. In order to win the business, he agreed to sign a contract with 45-day payment terms. The medical billing business owner knew he could float payroll for a month, but having to wait those last two weeks to get a check was going to make it very difficult for him to pay his employees on time.

Later that day, while paging through a current billing and coding journal, he came across an ad for a funding company that works specifically with medical billing and coding companies. The entrepreneur visited www.prnfunding.com and determined that medical billing factoring was truly the solution to his forthcoming cash flow problem. He filled out an online application, and within a week, PRN Funding had purchased his first invoice to the medical clinic.

Nurse Staffing Agency Switches Factoring Firms
Unhappy with her current funder because it didn’t know very much about the nurse staffing industry, this nurse staffing agency owner from Tennessee was researching factoring firms when she came across PRN Funding’s web site. She was pleased when she found out that PRN Funding had been factoring nurse staffing invoices for over 10 years, so she called the same day to learn more.

Within the twenty minute conversation, the agency owner found out that PRN Funding was already very familiar with the hospitals where she was currently staffing. Because of their nurse staffing expertise, PRN Funding was also able to advise the agency owner not to sign on with a particular facility because it had a record of paying 60 days beyond term. Floored by PRN Funding’s expertise, the agency owner decided to fill out an application that day.

Eight business days later, PRN Funding had completed the buyout process, communicated the remittance changes to the agency’s clients and purchased the first batch of invoices.
Click here for more information on PRN Funding’s accounts receivable factoring services.

Recap of Decision Health’s Private Duty Conference

Only a week has gone by since PRN Funding’s home care factoring experts exhibited at the 12th Annual Private Duty Conference and Expo in Las Vegas, Nevada, and we already miss it!

As a whole, the two-day national private duty conference was a good one. We saw a lot of traffic at our booth, so we had the opportunity to meet one-on-one with many home care agency business owners. The high-caliber attendees were eager to engage with our home care funding specialists, asking a multitude of questions about PRN Funding’s private duty factoring services.

In addition, there were over 100 private duty business owners who entered PRN Funding’s drawing for a free Apple iTouch. Congrats to our lucky winner, Richard Daum of Caring Senior Service.

Factoring Terminology

Entering into the world of accounts receivable factoring can seem overwhelming if you are not familiar with factoring industry jargon. We’ve identified and defined some of the more common factoring terms for our readers below:

Account Creditor – You, the Client and provider of goods or services.

Account Debtor – The purchaser of goods or services; responsible for the paying invoice.

Advance Rate – Money provided immediately to the company factoring its accounts receivable–expressed as a percentage of the total invoice amount.

Discount Fee – A fee assessed by a factor that purchases accounts receivable. The discount fee is determined by the size of the invoice, the length of time it takes to collect the funds and the creditworthiness of the customer, not the company selling the receivable.

Factor – A company that provides operating capital to businesses by purchasing their accounts receivable.

Factoring – The business of purchasing and collecting accounts receivable.

Non-Recourse – Generally, a period in which accounts purchased by the factor remain the factor’s accounts and do not revert to the account creditor if unpaid due to an insolvency event. The factor accepts full credit risk for any and all accounts that it purchases during this period.

Recourse – Generally, a period in which accounts purchased by the factor are able to revert to the account creditor if unpaid due to an insolvency event. The client accepts full credit risk for any and all accounts that it sells to the factor during this period.

Reserve – Amount of money that is not immediately provided to the company factoring its accounts receivable when the account is purchased by the factor, expressed as a percentage of the total invoice amount.

Reserve Release – A bonus paid back to you as a result of prompt paying of receivables by your customer. (Advance Rate + Reserve = 100% of Total Invoice) The Reserve, minus the discount fee, is transferred to the client once payment is received by the factor.

Click here to learn more factoring terminology.

Staffing World 2009 Kicks Off Today

The American Staffing Association’s annual Staffing World Conference begins today and runs through October 23. Held at the Orlando World Center Marriott Resort, Staffing World 2009 has a slew of opportunities for all kinds of staffing agencies.

The event kicks off with a Keynote address on Wednesday by Joe Calloway (sales, marketing and branding consultant), in which he’ll share the results of his research and analysis of the staffing and recruiting industry.

In addition, there will be a multitude of industry-specific workshops, including a healthcare staffing learning track.

Click here for more information on the 2009 ASA Conference.

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