PRN Funding Helps Home Healthcare Agencies Through Factoring

Do you own a home healthcare agency? Does waiting to be paid by Medicaid affect your ability to meet payroll and pay taxes on a timely basis? Do you have to wait too long to receive payments from a state agency for your non-medical home care services? Are you thinking of starting up a home care agency but you need to secure ongoing funding before doing so?

If you answered YES to any of the questions above, then PRN Funding’s home care factoring program is the solution to your agency’s funding needs. Through the purchase of your home care accounts receivables–a process known as factoring–your business can grow, without compromising your present obligations to payroll, taxes and vendor invoices.

Want to learn more? Click here to read about the benefits of home care factoring.

NAHC Welcomes Invoice Factoring Firm as a First-Time Exhibitor: PRN Funding to Give Away an iPad2

PRN Funding, LLC is set to exhibit at the National Association for Home Care & Hospice’s 30th Annual Convention at the Mandalay Bay Resort and Casino next month. This is the first time the home care factoring firm will be exhibiting, and it’s excited to speak with private duty home care agency owners about the benefits of accounts receivable financing.

President, Phil Cohen, Marketing Manager, Nikki Flores, and Office Manager, Stephanie Chmielecki, will be in booth #1054 October 2-4 speaking with home care business owners about how they can turn their Medicaid receivables into cash immediately through private duty care invoice factoring.

In addition to learning about invoice funding options, all attendees are invited to stop by booth #1054 and enter PRN Funding’s drawing to win an iPad2. There are two ways to enter PRN Funding’s iPad2 raffle: (1) Bring the postcard that was mailed prior to the conference directly to the booth or (2) Fill out an entry form. On the last day of the conference, PRN Funding will announce the winner.

With years of experience in healthcare industry, PRN Funding has a precise understanding of the unique challenges within the private duty and home care industries. PRN Funding offers financial resources to these companies by purchasing their accounts receivable–a process known as ‘factoring’, which provides the cash needed to sustain and grow a healthcare business.

NYSE Primed for Receivables Market

The New York Stock Exchange announced some of its plans to get involved with accounts receivable factoring industry earlier this week.

Specifically, the NYSE hired Paul DeDomenico, previously chief executive of GE Capital’s working capital solutions group to head up the exchange group’s corporate receivables program. In addition, the NYSE took a minority stake in The Receivables Exchange.

The two moves, which come amid a fierce political debate over bank lending to small-and-midsize businesses, could provide an advantage to the NYSE in its battle with competitors over share listings, by allowing the Big Board operator to offer a broader suite of services to companies that choose to list with it. And the moves provide an entry point to a market in receivables estimated by the companies at $17 trillion in size domestically.

Click here for the entire article: NYSE Euronext Bulks Up In Market for Receivables.

Study Shows Temp ER Nurses Could Be a Safety Threat to Patients

The nurse staffing factoring specialists at PRN Funding came across a piece of research that we believe is important to share with our Nurse Staffing Industry readers.  Due to the perceived credibility of the source of the study it is imperative that any company that provides supplemental medical staffing be aware of the study and prepared to address the underlying issues.

Johns Hopkins University School of Medicine announced new research showing that temporary ER nurses may inadvertently be a threat to the patients they serve. Specifically, the study found that temporary nurses were twice as likely as permanent employed nurses to have medication errors in the hectic and fast-paced emergency room environment.

Although the studyimplicated temporary nurses, the authors stressed that temp ER nurses are not the only ones to blame for these shortcomings. The authors cited various reasons for ER errors, including the fact that many hospitals don’t give temporary nurses the same level of consideration and training as they do for their permanent staff.

Click here to read the official press release: Temporary ER Staff Poses Increased Safety Risk to Patients.

ACE11 Recap

All in all, the Association for Healthcare Documentation Integrity (AHDI) 2011 Conference was a memorable one. Phil Cohen and Taylor Materna represented PRN Funding in booth #406 at ACE11 last week in Phoenix. They had the opportunity to speak with a number of MTSOs about the benefits of medical transcription invoice factoring.

Arriving back in the office today, the two had some overall thoughts to share about their experiences…

  1. They both felt that the show was run incredibly well.
  2. They had a steady stream of traffic at the booth, thanks in part to the Treasure Hunt promotion.
  3. The attendees were ready and willing to engage and learn about transcription factoring.

However, the biggest realization the medical transcription invoice funding specialists walked away with was that CDIA and AHDI need to combine forces and put on one big medical transcription conference in 2013.

Question: What do you think about CDIA and AHDI putting on one medical transcription conference in 2013?

Learn about Medical Transcription Factoring at ACE11

Phoenix, AZ – The Association for Healthcare Documentation Integrity (AHDI)is holding its Annual Convention and Expo at the JW Marriott Desert Ridge August 17-21, and PRN Funding, LLC will be in booth #406.

MTSOs and business owners interested in learning about an alternative form of financing can meet with the owner of PRN Funding, Phil Cohen, and Account Specialist, Taylor Materna, during exhibit hours.

In addition, AHDI attendees are encouraged to stop by PRN Funding’s booth to get a sticker as part of the Wheel of Prizes game. After visiting with participating exhibitors and collecting stickers, attendees can turn in their completed cards for a chance to spin the Wheel of Prizes.

Click here to read the official press release: Learn about Medical Transcription Factoring at ACE11.

What to Tell Your Customers When You Are Working with a Nurse Staffing Factor

Hiring an invoice funding company can be an unnerving process for nurse staffing agency owners because they may be worried about how their customers will view the new financing relationship. It’s a natural concern to have; however, working with a nurse staffing account receivables factoring company doesn’t have to be scary. This article gives three unique responses that agency owners can give to their customers to help explain a new account receivables factoring arrangement.

Nurse Staffing Account Receivables Factoring Response #1:
Invoice factoring is just an alternative form of financing.
As a result of these difficult economic times, traditional lenders (i.e. banks) are not extending new credit lines, and/or they are increasing interest rates. This makes it extremely difficult for a temporary nurse staffing agency to obtain traditional financing. At the same time, the demand for temporary nurses has sky-rocketed.

Savvy staffing agency owners are turning to alternative sources of financing to ensure that their businesses have a positive cash flow. In short, working with a nurse staffing account receivables factoring firm proves that the agency is fiscally sound and prepared to weather the down economy. Moreover, the factoring arrangement will allow my agency to continue to grow without hindering our ability to provide quality nurses to your facility.

Nurse Staffing Account Receivables Factoring Response #2:
Our current nurse staffing relationship will go unchanged.
Even though a factoring company will be managing my staffing agency’s receivables, the business relationship that I have with your medical facility will not change.  We will continue to provide you with excellent nurses and invoice as usual. Should you need one of our supplemental nurses to fill a staffing gap, feel free to contact our agency directly, and we will find a nurse to fill the position.

The only thing that will change on your end is the remittance address, as payments should now be sent directly to the factoring company.

Click here to find out what the third nurse staffing factoring response is.


What Sets PRN Funding Apart from Other Healthcare Factoring Firms?

How does PRN Funding’s healthcare factoring services differ from other factoring firms’ services?

In a nutshell, PRN Funding is known as the healthcare factoring experts. Temporary nurse staffing agencies, medical transcription services, medical coding services, and medical supply companies are just a few examples of healthcare businesses that we specialize in account receivable funding.

  1. PRN Funding works exclusively within the healthcare industry. If you sell products or deliver services to healthcare facilities, there is nobody better than us.
  2. Ultimate in factoring flexibility – You choose when, who, how much and how long to factor your invoices.
  3. Cash advances on your qualified receivables within hours of verification.
  4. No fixed-term contract to sign; you can stop or start factoring at any time.
  5. Collections are performed in a professional and productive manner, allowing your staff to focus on higher value-added activities.
  6. Real-time access to our online accounting and reporting system 24/7/365.
  7. No automated attendant-When the phone rings during business hours, a person answers.
  8. Access to a personal account manager. Accounts are assigned to one specific person who knows your business and your customers inside and out.

Don’t take our word for it! Read healthcare factoring success stories from some of our happy customers!

Common Customer Reactions to Factoring

If I use a factor to fund my invoices, what will my customers think?

This is a concern of many companies who are considering factoring as a finance strategy. However, establishing a credit line is a positive statement–not a negative statement–to make to your customers. Not all healthcare companies qualify for lines of credit.

Selling accounts receivable to generate cash is a finance method used by very large corporations worldwide, with the factoring service provided by the largest banks in the nation. In the past, only large corporations with millions of dollars in receivables per month qualified for factoring. Often factoring companies refused to work with smaller companies or companies with a large number of small invoices. Because factoring is widely known, your customers will view this as a positive ability on your part to secure financing, not as a problem with cash flow.

It’s likely that many of the healthcare institutions that you service already deal with factoring companies and may not even be aware of it. Sometimes payments for invoices directed to a P.O. Box are actually going to a factor. Shell Oil, Georgia-Pacific, IBM and other substantial companies factor millions of dollars of their accounts receivable every year.

Financing obtained through the sale of accounts receivable factoring is most often used by a firm to expand and take on larger projects; not merely for cash flow or payroll. Now that this service is available to companies like yours, you can enjoy both the perception and the reality of being a growing company, moving forward.

Still worried about how your customers will react to a factoring company? View PRN Funding’s What to Tell Your Customers page to learn how to talk to your customers about factoring.

How Groupon Makes Factoring Invoices Look Cheap

Tracy Z wrote an interesting post on FactoringInvestor.com comparing and contrasting the cost Groupon vs. the cost of invoice factoring.

Rightfully so, Tracy defined the marketing lure of Groupon as “marketing with no upfront fees.” For cash-strapped business owners looking to make more sales, free advertising sounds like a good deal–That is until you break down the numbers:

  • 50% discount to customer
  • 25% fee to deal provider
  • 25% net to business owner

In essence, the business owner only makes 25% AND they have to wait to get their portion, in installments, over time.Tracy outline a simple example, where 1/3 of the business owner’s profits was paid in 5 days, 1/3 in 30 days and the balance within 60 days:

$100,000

-$50,000 discount

-$25,000 fees

=$25,000 received by business owner (33% or $8,333 immediate advance, with the remaining $16,667 paid out over 60 days.)

Then Tracy used the same scenario as though the business owner were factoring:

$100,000

-$5000 factoring fee (average 5%)

=$95,000 received by business owner (80% advance or $ 80,000 upfront, with the balance less the fees received once debtor pays in full).

Pretty interesting comparison, huh?

Click here to read the article Tracy referenced in her post: Why Groupon is Poised for Collapse.

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