The Truth About Allied Health Staffing Invoice Funding

February 22, 2012 by  Filed under: Loans 

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 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, 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, invoice funding is not costly.

Myth #2: I Will be Required to Sign aLong-Term Commitment

Truth: Unlike a traditional line of credit through a bank loan, most 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.

Myth #3: My Customers Will Think I Have Cash Flow Problems

Truth: Not every business has the ability to qualify for financing. So if your agency is approved for a line of credit with an allied health staffing factoring company, is a good indication that your agency is growing and stable. Furthermore, it’s common practice for healthcare vendors to use invoice funding. Once alerted of the change in remittance address, medical providers simply view an allied staffing funding company as your agency’s new accounts receivable department.

Myth #4: Allied Health Staffing Companies Will Bother My Customers with Frequent Collections Calls

Truth: An invoice funding firm does not want to hinder its ability to collect on invoices, so it approaches the collections process with the same level of professionalism that the allied health staffing agency would. Moreover, the allied health invoice factoring company will initially contact your customers to verify that the invoices presented for sale are valid. Thereafter, the funding company would only reach out to your customers to follow-up on past-due invoices or skipped ones. If there a serious collection issue arises, the allied health staffing funding firm would contact you to discuss the best course of action to take.

Myth #5: Most Invoice Funding Companies Don’t Understand the Industry

Truth: There are plenty of invoice funding companies that are well-versed in the allied health staffing industry. All you have to do is perform a search for “allied health staffing invoice funding” using your preferred search engine, and then take your pick from the search results.

So in conclusion, don’t be fooled by all of the misconceptions revolving around allied health staffing invoice financing. Because the truth is- allied health staffing invoice funding is an excellent financing option for agency owners. It’s affordable, doesn’t require a long-term commitment, increases your agency’s credit rating, and most of all, it helps your business maintain a positive cash flow.

Philip Cohen is the founder and president of PRN Funding, LLC, which is an extraordinarily focused niche player in the healthcare staffing invoice financing market place. Through a process known as factoring, PRN Funding provides business owners with the financial resources needed to grow and effectively compete in the industry. With no minimums or fixed terms, PRN Funding provides medical staffing agencies with flexible and immediate access to capital. We give you the freedom to factor what you want, when you want, whom you want, for as long as you want. Prior to founding PRN Funding, Mr. Cohen was an executive officer of The MRC Group, a national provider of Medical Transcription Services. Contact Philip Cohen at toll-free 866.776.5407 or via email at pcohen@prnfunding.com. Please visit PRN Funding, LLC on the web at http://www.prnfunding.com/

Article Source:
http://EzineArticles.com/?expert=Philip_Cohen

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!


You must be logged in to post a comment.

Prev Post:
Next Post: