Temporary Nurse Staffing Factoring Case Study

NOTE: This temporary nurse staffing factoring case study can also be found on PRN Funding’s web site.

An Opportunity for Acquisition…
Barry was the office manager of a temporary nurse staffing company for many years when he was approached with a great business opportunity. The owners of the business were ready to retire and offered to sell their medical staffing company to him. The owners wanted to see their business continued, so they hoped that Barry would agree to buy the business and take over the ownership duties. If not, they would have to look to sell to an outsider running the risk of losing what made the agency unique. They felt that Barry was the best fit for managing the business. He would ensure the on-going success of their temporary nurse staffing company. The owners were even willing to work out a purchase plan with Barry so that he could make payments over time rather than all at once, but he would still need to make a significant down payment in order to secure ownership of the nurse staffing business.

Collateral Needed for Investment…
This opportunity was extremely exciting for Barry and he felt that it would be a great career move. He knew the ins-and-outs of the nurse staffing industry and was confident that he would continue to operate profitably. In a few years, with aggressive sales to area hospitals and nursing homes, he would be able to increase profits for the nurse staffing business. Barry only had one concern. He had no idea where he was going to get the money he needed for the down payment. Temporary staffing organizations simply don’t have the type of hard assets banks require as collateral. Also, the sellers were willing to take a note financing most of the business, but in return they would not allow any senior debt on the balance sheet. If he absolutely had to, Barry could guarantee the loan personally, but that was his absolute last option. There had to be another alternative for Barry to secure the working capital that he needed.

Cash Available in the Outstanding Receivables…
Looking over the financials, Barry realized that there was a significant amount of accounts receivable outstanding. The owners had not been aggressive in collecting or managing their accounts receivable. The services had already been provided, the employees had been paid, but the invoices were still outstanding. Barry remembered seeing an advertisement in one of his staffing journals for PRN Funding, LLC, a temporary nurse staffing accounts receivable factoring company that turned receivables into cash immediately. Promptly, he called PRN Funding and spoke to an account specialist for his business cash flow solution.

A Successful Nursing Staffing Company…
Just as the owners of the nurse staffing company were preparing to sell him the business, Barry was able to establish a relationship with PRN Funding. PRN Funding bought the outstanding invoices, even the invoices that had been issued months ago, and provided the temporary staffing business with an immediate cash advance. Barry used the funds from the cash advance to make the down payment on the business. PRN Funding was also able to actively and professionally collect on the outstanding accounts receivable, freeing up more time for Barry to concentrate on operating his business and ensuring the continued success of his nurse staffing company.

Would you like to learn more about how PRN Funding can help your healthcare business? Apply for healthcare factoring now!

Busting Healthcare Factoring Myths

There are a lot of rumors that factoring is not an ideal payroll funding solution for healthcare staffing business owners and entrepreneurs.

However, many of those rumors are a result of misinformation and poor staffing factoring research methods.

This article will help debunk some of the more common factoring myths so that staffing business owners can make an educated decision when it comes time to finding the appropriate funding solution for their cash flow problems.

Healthcare Staffing Factoring Myth #1: I’m nervous to factor my healthcare staffing invoices because my customers are not familiar with it.
Reality: Factoring has been around for over 4,000 years. In fact, many big name companies have benefited from it, including: 3M Corporation, Best Buy, American Express Company, Motorola Inc., CVS Corporation, and Foot Locker. In addition, factoring is very prominent in the world of staffing because medical facilities routinely take weeks or months to pay their staffing vendors. In most cases, in order for a staffing business owner to utilize a factoring company, the accounts payable clerk who handles the payables just needs to change the remittance address.

Healthcare Staffing Factoring Myth #2: Invoice Funding is an expensive financing option.
Reality: It’s important to consider the fact that a factoring fee is not the same thing as an annualized interest rate. For example, if a factoring firm charges a staffing agency owner 3% per month, it cannot simply be translated into 36% APR. Rather, a factoring firm’s fees stop the day an invoice is paid. Staffing firms do not typically wait 12 months to receive payment on an invoice, so the fee is not nearly as large as one would perceive it to be.

Healthcare Staffing Factoring Myth #3: Factoring requires a long-term commitment.
Reality: Unlike a bank loan, most factoring companies who work with staffing agencies do not require a fixed-term financing commitment. You choose when, who, how much and how long to factor your invoices.

Healthcare Staffing Factoring Myth #4: With factoring, I will lose control over my accounts.
Reality: Selling staffing invoices makes it easy for business owners to manage their invoices. Most factoring firms offer their clients access to financial reports weekly or daily. In fact, there are many factors who grant access to a secure online reporting system where staffing entrepreneurs can review purchased accounts and collections in real time via a secure Internet connection.

Healthcare Staffing Factoring Myth #5: The hospitals and nursing homes will think my agency has cash flow problems.
Reality: There are many businesses who use factoring and many medical facilities are already familiar with healthcare staffing factoring. Once alerted of the change in remittance address, healthcare facilities simply view the factor as the agency’s new accounts receivable department.


Healthcare Staffing Factoring Myth #6: The hospitals and nursing homes where I staff will be bothered by frequent collection calls.
Reality: A factoring firm will initially contact an agency’s customer to verify that the invoices are valid. If there is a problem and the staffing factor cannot successfully collect on the invoices, the factor will contact the agency owner to discuss the issue.

Healthcare Staffing Factoring Myth #7: The staffing business model is too complicated for a factoring firm to understand.
Reality: There are many accounts receivable factoring firms that are familiar with this intricacies involved with the staffing industry. As a result of their industry expertise, these factoring firms have specialized funding programs specifically geared towards staffing agencies.

Certainly, reviewing these seven common myths will help staffing agency owners who are trying to piece together the facts about invoice factoring. Hopefully, this article has proven that there are two-sides to every story. You can learn more about managing factoring fears, all it takes is a little research to get started!

**NOTE: This article is a re-printed version of what was also published onFactoringInvestor.com.

Recourse vs Non-Recourse Accounts Receivable Factoring for Nurse Staffing Companies

What is nurse staffing recourse factoring?

For the most part, recourse factoring is the most common and the most affordable nurse staffing financial help available to nurse staffing business owners. In this type of factoring arrangements, the nurse staffing accounts receivable factoring company will require an agency owner to buy an invoice back if the client does not pay within a specified amount of time. Moreover, the nurse staffing agency owner accepts full credit risk for any and all accounts receivables that it sells to the factoring company.

What is nurse staffing non-recourse factoring?
The other accounts receivable factoring option that owners have is non-recourse factoring. In a nutshell, non-recourse nurse staffing financing agreements hold the factor entirely responsible for an unpaid invoices if the following is true:

If the hospital, nursing home or vendor management system (VMS) goes bankrupt during the time an agency owner’s invoice was factored.

If the hospital, nursing home or VMS goes out of business during the time an agency owner’s invoice was factored.

It’s important to keep in mind that non-recourse accounts receivable factoring does not cover the following situations:

  • Very late payments when there is no insolvency
  • Disputes/challenges with nurse staffing services
  • General collections issues

Naturally, both options have pros and cons that an owner should consider before choosing which type of agreement to make. Typically, they will receive lower factoring fees and/or higher advance rates if they choose to enter into a recourse factoring relationship. On the other hand, a non-recourse accounts receivable factoring arrangement buys nurse staffing business owners’ protection if a hospital nursing home or VMS goes bankrupt. Ultimately, agency owners need to review their accounts receivable factoring contract in detail with a lawyer to determine which type of arrangement, recourse or non-recourse, is the best fit for their agency.

**NOTE: This article is a re-printed version of what was originally written for and published on eZineArticles.com as well as FactoringInvestor.com.

The How To Guide – Allied Health Staffing Factoring

The notion of selling allied health staffing receivables to a factoring firm may sound like a difficult concept to understand, but in reality, nothing could be further from the truth.

In fact, there are many companies (i.e. respiratory therapist staffing agencies, radiology tech staffing firms, and physical therapist staffing agencies) that can greatly benefit from all that allied health staffing factoring has to offer. Namely, growing their companies without having to worry about how long it will take for their customers to pay them.

In order to help clear up any healthcare factoring misconceptions, this article will explain the allied health staffing factoring process step-by-step…

  1. The customer (i.e. hospital, medical clinic, nursing home, etc.) approaches an allied health staffing company to fill an open shift.
  2. If it’s a new customer, the factoring firm performs a credit check on the medical facility and if approved, determines a line of credit for that customer.
  3. The staffing firm provides the medical facility with a temporary employee to fill the shift.
  4. The agency issues an invoice to the medical facility for the shift, making sure to include the factoring firm’s remittance information directly on the invoice.
  5. At any time after the invoice has been issued, the allied health company submits a schedule of accounts receivable for purchase to the factoring firm. In addition to the invoice, this schedule also includes any supporting documentation (i.e. signed time-sheets).
  6. The invoice funding company will contact the staffing agency’s customers from time to time to verify that they are actively using temporary employees from the agency. Upon verification of the invoices, the factor will electronically advance funds within hours.
  7. Per the remittance information included on the factored invoice, the medical facility sends payments directly to the factoring firm’s lock box.
  8. Upon receipt of the payment, the factor remits the difference (reserve) between the collected amount and the advance to the agency, less the discount fee.

Selling invoices to a factor improves the agency’s cash flow, allowing business owners to meet payroll, taxes and other monetary obligations in a timely manner. Thanks to this article, allied health staffing business owners are able to easily familiarize themselves with the factoring process. The next step in improving their cash flow is to start researching which allied health staffing factoring firm will best meet their company’s cash flow needs.

**NOTE: This article is a re-printed version of what was originally written for and published on eZineArticles.com as well as FactoringInvestor.com.

Freedom from Factoring Fees

In an effort to combat the affects of the crumbling economy, service-oriented businesses have been getting creative with new ways to generate money.

Unfortunately for consumers, that creativity often translates into price hikes, additional fees, reduced services or cut backs on productivity. But does it have to be that way?

Take a look at the airline industry. When fuel prices soared last summer, airline giants started charging extra for what were once common courtesy services in addition to the original ticket price. They started with charging for snacks and drinks and then quickly moved onto charging checked bag fees, assigned seat fees, fuel surcharges, curbside check-in fees, etc.

Once the industry giants established that this additional fee policy was going to be part of the standard flight-booking procedures, it didn’t take long for all of the airlines to jump on the “Hidden Fee Bandwagon.” From a customer’s perspective, it seemed as though the airline industry as a whole started seeing dollar signs instead of thinking about its customers needs. Then along came Southwest Airlines with its clear thinking and its “No Fee Policy.”

In some ways, the accounts receivable factoring industry can appear to be a lot like the airlines industry. Both operate world-wide, both industries should be service-oriented, and both industries are notorious for tacking on extra fees in addition to the basic fee. Much like Southwest Airlines, the factoring industry has a handful of healthcare factoring companies who do not charge extra fees in addition to the base fee. This article will discuss three areas where factoring firms might insert hidden fees.

First and foremost, a business owner needs to understand the basics of how a factor charges for its factoring services. It’s important to note that healthcare factoring firms do not loan money; rather, they purchase a company’s invoices at a discounted rate. This discount rate can be a one-time flat fee, or it can vary depending on how long the factor owns the invoice.

In general, discount rates can be affected by a number of things, including the contractual commitment, the average monthly purchase volumes, the average size of the invoices sold, the number of account debtors (customers) that will be factored and the credit quality of those debtors. Variations in each of these will lead to potentially substantial changes in the fee structure. In many cases, factoring firms will have extra fees in addition to their factoring discount fee. More often than not, these “hidden fees” are disguised as set-up fees, administrative fees and penalty fees.

Set-up Fees
There are some factoring companies that start charging fees as soon as a potential client applies for healthcare factoring services. Set-up fees range from a minimal application fee of $25 to a hefty origination fee of $500. In some cases, factors will add in individual fees for due diligence procedures (i.e. running credit and background checks) and legal documentation fees (i.e. assembling legal documents and filing liens). When all is said and done, a new factoring prospect could be $1,000 out of pocket before knowing if he/she has been approved for funding.

When business owners are comparing and contrasting factoring companies, it’s important to inquire whether the factor charges specific set-up fees. Sometimes, the factor will say yes, and sometimes it will say no. It’s up to the business owner to decide whether or not the factoring services outweigh the start-up costs before moving forward.

Administrative Fees
In addition to application, origination and due diligence fees, some factoring firms charge their clients for the time it takes to compile and ship legal documents, billing for postage, long-distance phone calls, photocopying documents and/or time spent on the computer while assisting their clients. There are also fees associated with funding procedures. Most factors will institute set prices for a same-day wire or an overnight transfer of funds.

When a business owner is contemplating the notion of factoring his/her receivables, it’s important to factor any administrative costs into the equation. Without doing so, a business owner could wind up paying a lot more than he/she had initially anticipated.

Penalty Fees
The last way a factoring firm could potentially squeeze in some additional “hidden fees” is when it assigns fees for various “penalties.” Under this umbrella of penalty fees, a factoring firm could designate fees for misdirected payments, early termination of a contract, aged invoices, expedited funding (within 24 hours or less), not hitting a monthly minimum factoring requirement or going over the maximum allowable factoring amount. In addition, a healthcare factoring firm could also penalize its client by holding onto the funds within the reserve account (cash that is owed back to the client once payments have been received).

When choosing an accounts receivable factoring company, business owners should take the time to read all of the terms and conditions before signing on the dotted line. Entrepreneurs should not be afraid to dig deep into the factoring contract and ask a question when something is unclear. Otherwise, those hidden fees hidden fees will reveal themselves at a point where it’s too late to re-negotiate the terms.

So in conclusion, it does appear that the factoring industry is similar to the airlines industry in that players in both are notorious for charging “extra fees.” The plus side to this realization, however, is that both industries also have some players who stand firm in their “No Extra Fee Policy.” The bottom line-much like when shopping for the best airline deal, it’s extremely important to look at the all-inclusive price, including possibly extra fees, before agreeing to do business with an accounts receivable factoring company.

**NOTE: This article is a re-printed version of what was originally written for and published on eZineArticles.com as well as FactoringInvestor.com.

Why Temporary Nurse Staffing Agencies Make Great Candidates For Invoice Funding

PRN Funding’s president, Phil Cohen, recently published an online article entitled: Why Temporary Nurse Staffing Companies Make Great Candidates For Factoring, which FactoringInvestor.com re-published. The nurse staffing factoring blogging crew wanted to share the well-written article with our nurse staffing agency owners…

There are two instances when a temporary nurse staffing agency could encounter a bit of a cash flow crisis.  The first is when the agency is just starting out, and the second is when it hits a period of rapid growth.  To a bank looking at a loan application, neither situation is attractive.  On the contrary, to some factors both of these situations might sound very appealing, and this article explains why.

When a nurse staffing business is just starting out, it lacks two vital attributes for a bank to consider it as a good loan candidate.  First of all, a startup staffing company does not have any tangible assets with which to secure a loan.  In fact, the company’s primary asset is its nurse staffing accounts receivables, which unfortunately is not concrete enough for a bank because those can disappear quickly and without notice.  Banks look for assets that are more tangible such as real estate, machinery or equipment—something physical that they can place a lien on wherever it goes so that in the event of default, the bank can still lay claim to and liquidate that collateral.

On the other hand, there are some nurse staffing factoring firms that are willing and able to work with startup nurse staffing companies.  Rather than loaning money, factors provide cash based on the quality and liquidity of a temporary nurse staffing agency’s assets, specifically their accounts receivable.  In the event that a nurse staffing agency was to go out of business, a factor can continue to collect on invoices that were issued previous to their closing up shop.

The second area that could prevent a new nurse staffing agency from obtaining a business loan is that banks provide loans on the basis of a company’s historical financial performance rather than its potential for success.  Temporary nurse staffing companies who are just starting out have no financial history, which is viewed by a bank as just as risky as having a bad one.  Moreover, banks traditionally will not consider loaning money or extending credit to companies who have been in business for fewer than three years because of the high failure rate for new businesses.

Once again, some nurse staffing factoring companies have a different approach to funding new businesses and are not so easily swayed by the fact that they are just opening their doors.  For starters, factors consider the quality of a nurse staffing company’s accounts (the credit-worthiness of their customers and the validity of their invoices) which allow them to provide funding even when the company is new.  Nurse staffing factoring firms see a different picture when investigating the credit-worthiness of their clients’ customers.  As long as the client is staffing nurses in good paying medical facilities, and the factor is comfortable that they will get paid for the invoices that they buy, the actual agency’s credit becomes a minute detail in the grand scheme of things.

As I said previously, another time when nurse staffing agencies find themselves in need of cash is during a rapid growth period.  For example, a temporary staffing company may have landed a contract with the area’s biggest hospital, and they need to hire and staff an additional 20 nurses immediately.  The agency might have enough money to recruit nurses to fill the demand, but it might not have enough readily available cash to pay their nurses once they have completed their shifts.  This situation is quite common in the nurse staffing world because business owners are expected to invoice and make payroll on a weekly basis while the medical facilities they staff regularly can take up to three months to pay for those shifts.

Now let’s analyze this situation from a banker’s perspective.  Banks consider a company’s ability to repay a loan based on its historic earnings cash flow.  Unfortunately for our growing temporary staffing company, its previous income and cash flow is much smaller in comparison to its increasing need for financing. Sometimes a nurse staffing company’s previous year’s income is enough to secure a bank loan, that is to say, if the staffing agency wanted to stay at its same operating size.  More often than not, a staffing company goes to a bank looking for a larger loan than what last year’s earnings could justify because they intend to use the loan to double or triple last year’s revenues.  Unfortunately, a bank wouldn’t feel comfortable loaning money to a company based solely on its potential to grow.  Once again, banks look at the agency’s profitable operating history to justify lending.  So the bank lending process eventually turns into a never-ending cycle—the nurse staffing company needs money to grow, but the bank needs to see a history of growth to give out money.

Enter a nurse staffing factor.  Though a factor will look into a growing nurse staffing business’s operating history, it’s not a deal killer if the company doesn’t have a track record of high earnings because a factor is generally more concerned with the future of the business.  A good rule of thumb to remember: banks look to a company’s past to justify approving a loan, while factors look at a company’s future growth potential to justify advancing cash on their invoices.  Going back to our example, the fact that the nurse staffing agency just signed a contract with one of the biggest and fastest paying hospitals in the area means nothing to a bank, but it is great news for a nurse staffing factoring firm.

I hope that the invoice factoring information that I’ve shared with you in this article have helped you realize how hard it is for a new or growing nurse staffing company to be approved for a bank loan.  Fortunately, there is another good alternative business financing option—nurse staffing invoice factoring. Selling their invoices to a nurse staffing factoring firm is a much more lucrative option for agencies who are just opening their doors or who are going through a period of rapid growth.

Find Nursing Info on Twitter

Howard Gerber of Sunbelt Staffing did a great blog post about how nurses can use Twitter to stay up-to-date on nurse industry news. For the convenience of our nurse staffing industry readers, the temporary nurse staffing invoice funding specialists at PRN Funding wanted to re-post the valuable information on The Factoring Blog as well:

As a nurse, you probably work long hours and have very little down time to read about medical news, keep up with other nursing journals or nursing issues. Twitter can make it much easier to keep up with the latest news and information. By following accounts specific to the field of nursing, you can have all of the news and information sent to you in short bursts that can be read quickly. If they interest you, you can follow links for more information. With free Twitter apps available for all smart phones, you can keep up while on breaks at work or while you are on your commute home – as long as you aren’t driving!

@NursingTimes

This Twitter account is maintained by the Nursing Times website. They tweet multiple times a day and include news items related to the field of health, nursing, and nursing education.

@AmericanNurseToday

This is the official Twitter account of the journal for the American Nurses Association. They tweet news articles from their own journal as well as from other health publications several times a day.

@NEJM

This Twitter account is maintained by the New England Journal of Medicine. While this is not a journal specifically for nurses, they do provide a wide range of medical information. The Twitter feed is updated several times a day as new articles are published to their site.

@AmJNurs

The American Journal of Nursing is a peer-reviewed journal that has been publishing evidence-based articles since 1900. Their Twitter feed is updated numerous times a day during the week and include links to their own articles, news articles, and information posted by other health organizations.

@MinorityNurse

Minority nurses, nursing students, and faculty often face unique challenges in the field of medicine. This account tweets frequently and includes links to their own articles as well as to general health articles and resources for minorities.

@MedSurgNurses

This Twitter account is maintained by the Academy of Medical-Surgical Nurses. This is a national organization specifically for medical-surgical nurses. They update several times daily during the week with links to nursing news and resources as well as recommendations for other Twitter accounts to follow in the field of health.

@aorn

This is another nursing specialty account maintained by the Association of PeriOperative Registered Nurses. They discuss issues specific to their field as well as general health topics and items of interest to nurses in general.

There are hundreds of Twitter accounts that are maintained by nurses, nursing students, nurse educators, nursing journals, nursing schools, and nursing associations. Use these as a starting point and look at the organizations they are following as well as who they have as followers to find even more accounts you may be interested in.

Recent Study Says Healthcare Employment Showing Significant Growth

Did anyone else see NursingCorp’s February eNewsletter? In it, the Caracci’s discussed the State of Healthcare Employment based on a recent study released by the Altarum Institute’s Center for Studying Health Spending. Here are some of the study’s key findings:

  • In 2007, private sector healthcare employment was 9.5 percent of the total US employment. In 2011, it increased to 10.7 percent.
  • From 2007-2011, non-healthcare jobs have decreased 6.8 percent, while healthcare employment increased 6.3 percent.
  • Currently, 34 percent of all healthcare employment is taking place in the hospital setting, 22 percent in nursing and residential care facilities, 17 percent in physician’s offices and 19 percent in the outpatient setting.

Changing EHR Market is Wreaking Havoc on Vendors’ Cash Flow

Advance Perspective’s HIM Blog recently re-posted a blog post by Don Fornes of EHR Software Advice, in which he discussed the ever-changing eletronic health record (EHR) market and how it’s impacting vendors’ cash flow. The medical transcription factoring specialists and medical billing and coding invoice funding specialists at PRN Funding took the liberty of summarizing the bulk of the post below:

In a nutshell, Fornes’ article talked about how most people would think that the Federal subsidies for EHR implementation would create a massive boom for EHR software industry, however, this concept couldn’t be further from the truth. Based on the data points that Fornes has observed over the past few months, he thinks that most EHR software vendors are actually experiencing a cash flow crunch.

According to Fornes, these EHR software vendors have been pouring cash into marketing and brand awareness initiatives to remain top-of-mind for physicians’ practices and medical facilities, however, most providers have taken a “wait-and-see” approach to EHR adoption.

Couple these two scenarios with the increasing shift for the software industry as a whole to shift to cloud computing because of low monthly pricing.

As a result of EHR vendors investing a lot of money into their business expansion, providers writing fewer checks than anticipated and the checks that are written are much smaller and more spread out, a difficult cash flow scenario has been playing out for a number of vendors. Fornes commented how he’s seen “some EHR vendors stretching their payables out 90 or even 120 days.”

Overall, it was a very informative article, however, what Fornes left out what that EHR vendors have the ability to drastically improve their cash flow by factoring their invoices. For example, an EHR vendor could sell its invoices to PRN Funding and receive cash the same day.

Click here to read Fornes’ original blog post.

Jan 2011 – PRN Funding’s Recent Factoring Transactions

PRN Funding offers financing services to healthcare vendors. Most notable, PRN Funding offers healthcare staffing payroll funding, medical transcription invoice funding, medical coding factoring and medical billing AR funding. Most recently, PRN Funding also provides private duty home care factoring agencies.  By purchasing these companies’ accounts receivables, PRN Funding provides the cash needed for them to sustain and grow their healthcare business.  With that said, we are pleased to announce some of our most recent factoring transactions:

A Nurse Staffing Agency Finally Gets Approved for AR Financing
In an attempt to get her company started, this Illinois nurse staffing agency owner borrowed from friends and family, maxed out all of her credit cards and fell behind on her bills. Naturally, her poor personal credit was greatly hindering her ability to obtain ongoing business financing from a traditional lender.

Frustrated from being turned down, the nurse staffing agency owner started researching alternative financing options and came across PRN Funding’s nurse staffing invoice funding web site. Through her research, she learned that PRN Funding based its credit decision on her customers’ creditworthiness, rather than her own. The agency owner applied online that day and after hearing ‘no’ for so long, she was finally approved for a line of credit.

An Allied Health Staffing Agency Works with Long-Term Care Facilities
Two business partners from Louisiana knew that in order for them to start a successful medical staffing agency in a down economy, they would have to focus a specialized staffing niche. So instead of placing RNs, LPNs and CNAs, they chose to focus on providing various types of therapists to help fill gaps exclusively at long-term care facilities. Within two months of opening their doors, the savvy business partners had more shifts to fill than therapists. However, they couldn’t hire additional therapists because their cash flow was continuously held up by slow payments from the long-term care facilities.

The business partners were familiar with factoring, and they knew that most general factors wouldn’t be comfortable purchasing receivables that could consistently age out past 90 days. Luckily, a friend of one of the partners suggested they approach PRN Funding because it was a factoring firm that specialized in allied health factoring. The business partners called in on a Friday, received documents the next day, and factored their very first allied health invoice by the end of the week. Having a better cash flow allowed them to bring on three new therapists that month, and they haven’t had to turn down new business since.

Tennessee Business Owner Uses Medical Coding Invoice Factoring to Improve Cash Flow
When this entrepreneur first started her medical coding business, she coded exclusively for one physician. Over the years, the business owner’s outsourced medical coding services expanded steadily. She gradually started hiring new coders and while simultaneously adding multiple doctors to her portfolio.  Then the economy turned south, and with it, the business owner’s receivables started coming in slower.

At first, the medical coding entrepreneur tried to make up for the lack of cash flow by paying her own bills with credit cards, and paying the coders out of her own pocket. It didn’t take long before her credit cards were maxed and her savings account had dwindled. While flipping through an industry magazine, she found an ad for PRN Funding’s medical coding factoring services. According to the ad, PRN Funding’s factoring services could help her get paid quicker, so she dialed the toll-free number and was connected to a medical coding factoring specialist immediately. Two weeks later, she submitted her first medical coding invoice for factoring, and she worried less about her company’s cash flow.

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

Older Posts
Newer Posts