Frequently Asked Questions for Factoring Brokers

PRN Funding, LLC has been in the business of healthcare factoring for over a decade. Since the company’s inception, we’ve always valued our factoring broker relationships. We even put together a quick reference guide of Frequently Asked Questions for Factoring Brokers on our company web site.

Q: What types of healthcare invoice factoring clients should I send to PRN Funding?

A: We focus exclusively on providing funding for companies that supply goods or services to medical providers. Examples of prospective clients include: temporary nurse staffing agencies, medical transcription services, medical coding companies, outsourced medical billing companies, medical supply companies, etc.

Q: Can my client qualify if it is a start-up company or has a history of credit problems?

A:Yes. PRN Funding has flexible healthcare factoring options for all types of businesses in all kinds of financial situations.

Q: Does PRN Funding loan my clients money?

A: No, PRN purchases your client’s accounts receivable. We make an outright purchase of the financial rights to your client’s invoices, and advance cash immediately.

Q: What invoices qualify for purchase by PRN?

A: Any valid invoice for services already performed or goods sold to a creditworthy customer, government agencies included.

Q: Are there any restrictions on the size of the invoice or the location of my client and my client’s customers?

A: No. PRN Funding has no minimums and no maximums. We grow with your clients as their companies expand.

Q: Does my client have to sign a term contract with PRN?

A: No, PRN Funding provides the ultimate in flexibility. PRN Funding does not require our clients to sign a termed contract.

Q: What is required before buying an invoice?

A: The work/goods must have been completed, delivered and accepted; and your customer must be a creditworthy risk.

PRN Funding Headed to ACE2012 to Talk Factoring to MTSOs

PRN Funding, LLC has been invited to exhibit at The Association for Healthcare Documentation Integrity (AHDI)’s Annual Convention and Expo.

This year’s event, held at the JW Marriott Indianapolis August 8-11, is an exciting one. All AHDI attendees are invited to stop by the company’s booth #108, to secure a stamp to help them win a prize in the Wheel of Prizes game. President Phil Cohen and Marketing Manager Nikki Flores will be available to share insider tips on the benefits of medical transcription factoring.

Click here to read the press release in its entirety: PRN Funding, LLC to Travel to Indianapolis as Experts on Medical Transcription Factoring

Banks are Still Rejecting Small Business Loan Applicants

According to an article on PRWeb.com, Biz2Cred recently conducted a study on 1,000 small businesses that had been in operation for two or more years. Each of these companies had credit scores of 650 or higher, and was involved in a banking relationship at the time the study was conducted. Biz2Credit then recorded the results of loan applications the companies made in 2012.

The overall finding?

Small business customers of Bank of America, JP Morgan Chase, Wells Fargo, and TD Bank were the most frequently rejected applicants for funding.

Morveover, Rohit Arora, CEO of Biz2Credit, this survey affirms the fears and suspicions of small business owners everywhere: that “big banks have been unwilling to lend to them.
Here are the percentages of viable candidates were rejected by banks with $10 billion or more in assets:

• Bank of America 13.5%
• JP Morgan Chase 11.6%
• Wells Fargo 11.2%
• TD Bank USA 2.9%
• PNC Bank 2.3%

Note from The Factoring Blog: Since a small business owner’s risk of rejection has been elevated, it might be a  better idea of him/her to factor their receivables.

Spread of Late Payments and Its Effects on the Economy

The worldwide web of businesses depends on each entity’s ability and desire to uphold agreements. It is accepted as universally true that each party must pay for services rendered, or render services for timely payment.

We can only wish that it would be that simple. When businesses are unable to pay off invoices on time on a widespread basis, what results is what Wall Street Journal reporter Emily Maltby has called, “a cash-crunch contagion.” One company’s inability to pay another leads to the second business’ inability to pay those it is in debt to, and so on until delinquency spreads like wildfire, becoming a national affliction with international consequences.

Of course, the causes for delinquency will come as no surprise to business owners:

  • Slow consumer activity
  • Constricted capital markets
  • General economic pessimism and uncertainty

All of these factors have made it very difficult for businesses to make good on both their receivables and payables. In this sense, delinquent receivables are at the core of the financial crisis. They affect small businesses and their abilities’ to provide quality services, in turn affecting consumers negatively. Delinquent receivables lower credit ratings nationwide and only worsen banks’ already timid lending policies.

The solution? Small business owners can and should factor their receivables, and get your cash instantly. If the customer has decent credit, there is no reason why a business owner should have to wait a long time to get paid.

Click here to learn more about small business factoring.

Temp Staffing Industry Adds a Third of June’s Jobs

It has been a banner month for the temporary staffing industry. Staffers led U.S. employment growth in June by adding more than 25,000 jobs to the American workforce. About a third of American jobs created in June were in staffing, according to the American Staffing Asssociation’s July 6th  edition of Staffing Today.

According to Richard Wahlquist, president and CEO of the American Staffing Association “Businesses continue to be very cautious about hiring in the current uncertain economic environment.” Mr. Wahlquist believes this is good news, reminding job seekers “that staffing firms offer immediate employment as well as opportunities for permanent placement.”

This is good news not only for our healthcare staffing factoring readers, but it’s interesting news for our manufacturing staffing factoring readers as well as our entire temporary staffing payroll funding clientele.

Keep in mind that the job growth is actually good news for Americans everywhere. The rise of staffing is a key indicator of the rise of employment across the board. Even though the rate of monthly job creation has fallen from the First Quarter to the Second, more growth is on the horizon for the remainder of the year.

Invoice Factoring Case Study: Outsourced Medical Billing Company

The outsourced medical billing factoring specialists at PRN Funding wanted to share one of our more recent invoice funding case studies with the medical billing company owners that read The Factoring Blog:

David had aspirations of entrepreneurship ever since he graduated college. Due to the ever-increasing demand for health care, he spotted an opportunity to start his own medical billing company. As word quickly spread about the company’s unparalleled customer service, David’s start-up medical billing company began getting more calls and business soared. As a result, David needed to hire more medical billing specialists to handle the new demand. Because his customers took about 45 days to pay him for his medical billing services, David realized that he would not have enough readily available cash on hand to pay his employees on time. As a result, David began researching financing options. Unfortunately, because David’s company was relatively new, the bank he initially approached turned him down.

Medical Billing Factoring

David didn’t know what to do. He called his friend Steve, who is a broker for alternative financing companies. Steve informed David about accounts receivable factoring, which would help him stabilize his cash flow through the company’s growth period. Steve referred David to PRN Funding, LLC, who has a dedicated medical billing factoring program.

Happy Medical Transcription Week 2012

Did you know that President Ronald Regan established May 20-26 as National Medical Transcriptionist Week? He did–In 1985.

So the medical transcription invoice funding experts at PRN Funding, LLC wanted to wish all of medical transcription blog readers a very Happy Medical Transcription Week!

Of course, the MT industry is not going away, but it is in a constant state of flux as large MTSOs acquire small ones in addition to incorporating EHRs. If you’re an MTSO or a transcriptionist, we want to hear your thoughts on the future of the industry. Feel free to leave comments.

What is Invoice Factoring?

In a nutshell, invoice factoring is the process of converting the accounts receivable of a business into cash by selling outstanding invoices to a factoring company for a discount. Businesses who factor their receivables get cash up front to cover payroll and payroll taxes and pay their vendors on time.

PRN Funding’s president, Phil Cohen, explains invoice factoring in more detail in the video below:

Medical Receivable Factoring vs. Healthcare Factoring

When it comes to factoring in the healthcare industry, there are two different kinds of companies that can benefit from what’s commonly referred to as healthcare factoring and/or medical factoring. Both types of healthcare companies make ideal invoice factoring candidates because both routinely bill creditworthy slow-paying customers. The Marketing Manager at PRN Funding took the time to explain the differences in the video below:

The first variation of the healthcare factoring model involves entrepreneurs who own a service-oriented business within the healthcare industry. Specifically, medical transcription services, medical equipment providers, medical supply companies, medical staffing agencies, temporary nurse registries, outsourced medical coding companies, medical billing services, etc. can all benefit greatly by factoring their invoices. Healthcare factoring can be extremely beneficial for vendors hoping to maintain a positive cash flow when their customers (medical providers) take weeks or months to pay them for their services or goods. Click here to learn more about PRN Funding’s healthcare factoring solution.

On the other hand, medical receivables factoring includes a third party payer (i.e. Medicaid, Medicare or private insurance company) within the medical invoicing process. In this instance, the medical provider is the one who benefits from factoring.

Medical receivables factoring is a great way for medical providers to bridge the cash flow gap that is oftentimes created by slow payments from insurance carriers and other third-party payers.

As experts in the healthcare factoring marketplace, PRN Funding has developed relationships with credible medical factoring companies that specialize in helping hospitals, nursing homes, physicians’ practices, etc. maintain a positive cash flow.

Click here for more information on healthcare factoring vs. medical factoring.

Aging Workforce is Straining Social Security

Did you happen to see the Associated Press article on Monday entitled: Aging workforce strains Social Security, Medicare?

If not, the healthcare factoring specialists at PRN Funding summarized the startling findings below:

Social Security and Medicare, the government’s two largest benefit programs, are in worse shape than previously thought due to the increasing aging population and the slow-rebounding economy. Moreover, Medicare is in the worst shape because of rising health insurance costs.

The predictions from last year was that the Medicare hospital insurance fund for seniors would run out of money in 2024, and Social Security’s retirement fund would run out in 2038, with the disability fund running out of money by 2018.

The latest projections from March indicate that the disability fund would run out of money two years earlier in 2016.

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