Medical staffing companies, particularly those providing nursing staff, are in high demand across the country. There are a lot of opportunities to grow and expand with this demand, but cash flow problems inherent in the structure of the payment system may hold a company back. If this is a concern, turning to nurse staffing factoring is the answer to the obstacles you have been facing.
The biggest issues in this industry are the delay or the lag between invoicing for nursing services and payment by the hospital or medical facility. In some cases, particularly with contracts with a healthcare system, the staffing companies may invoice and then wait 30, 60, or even 90-days for payment.
In the meantime, they are still required to pay their nursing staff on a weekly or bi-weekly basis. Not making payroll means the loss of the top nursing staff, which will hurt your business both short and long term.
What is Nurse Staffing Factoring?
The basics of nurse staffing factoring are very simple and easy to understand. The factor will buy unpaid invoices and then advance the staffing company up to 90% of the value.
This entire process can take just days, all the nursing company needs to do is complete an only application and provide the invoices to the factoring company. The nurse staffing factoring company verifies the services have been provided and then makes the advance into your company account.
They will then handle all the management of those accounts receivables until final payment is received from the medical facility. At this time, the nurse staffing factoring company deducts their fees and forwards any residual amount to you.
What about Contracts?
Yes there is a contract. Re word this please. Additionally, since it is not a loan, there is no repayment or on ongoing obligation between the staffing company and the factoring company.
A top factor will provide the nurse staffing company with full access to accounts through a secure online portal. This allows for effective business decisions as you are fully aware of what invoices have been paid and which may still be outstanding.
Using nurse staffing factoring to handle payroll or the hiring of new staff is very common in the industry. It not only covers gaps between invoicing and payment, but it also provides staffing companies the opportunity to take on new contracts and clients without cash flow concerns.
