Factoring firms receive all sorts of questions from business owners in regards to their services. From the cost of factoring to the length of time one is required to remain in a factoring relationship, we’ve heard it all. However in this article, I’d like to answer one of the most frequently asked questions about nurse staffing account receivable factoring: What is needed to complete an initial factoring transaction?

1. The first thing a nurse staffing account receivable factor does prior to an initial funding is check into the creditworthiness of the agency’s customers. Credit approval for a first-time debtor (customer) is simple. The agency supplies the factor with the name and address of the new debtor, and then the factor will run credit on that debtor. Once approved, the agency can present invoices for sale.
2. The business owner sends out the original invoices to their debtors as normal, and then sends a copy of those invoices along with proof of performance (signed time sheets) to the factoring company. This can usually be accomplished via fax or email. It’s important to note that the nurse staffing account receivable factoring company will only purchase invoices for shifts that have already been worked.
3. The account receivable factor will then verify that the invoices are valid by speaking with a nurse scheduler or Director of Nursing (DON) at the facilities where the shifts were worked just to confirm that the nurses worked the shifts listed on the invoices.

Click here to read about the rest of the Steps to Complete an Initial Nurse Staffing Account Receivable Factoring Transaction.

The National Nurses in Business Association (NNBA) sent out an eNewsletter this week full of some exciting announcements:

First the nurse entrepreneur organization launched a new website in late January. The new site is easy to navigate, has a print option for each page, and has a quick find feature. Photos of NNBA members are also a part of the website. Click here to check out the new NNBA web site.

In addition, the NNBA launched a monthly newsletter this year, which will highlight members and their accomplishments, and report nurse entrepreneur news and upcoming events.

Finally, the NNBA and the University of Florida are collaborating for the 27th Annual NNBA Conference: Healthcare Self-Employed Entrepreneurship Summit. The event is scheduled for August 18 and 19, 2012, in Orlando, Florida. Click here for more information on the 2012 NNBA Conference.

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.

Click here to read the entire article: The Truth About Allied Health Staffing Invoice Funding.