I’m sure that many of you are aware that our nation is facing an imminent nurse shortage, and truth be told, there are a lot of cash flow opportunities within the temporary nurse staffing industry. With that said, there are also a lot of factoring brokers already working leads in the nurse staffing industry. So how does one break through all the competition? Go after a specific niche—i.e. mental health professionals.
According to data from the Department of Veterans Affairs, the number of veterans with post-traumatic stress disorder is currently increasing by about 10,000 every three months, what experts call the cumulative effect of a decade of war. As the need for mental health increases, so too does the need for psychiatric professionals. Hence, now is the perfect time for a nurse staffing agency to break into temporary psychiatric nurse staffing. And when they do, they will look to factoring brokers to help them avoid cash flow issues during the transition.
Even though they have a specialized niche within the staffing industry, mental health nurse staffing agencies experience the same kind of cash flow problems that general nurse staffing companies do. For example, a mental health nurse staffing business owner staffs Advanced Practice Registered Nurses (APRNs) and/or Psychiatric mental health nurse practitioners (PMHNPs) at a medical facility and sends an invoice promptly after the nurses have completed their shifts. Unfortunately, it’s typical for large hospitals to take 30-60 days to pay those invoices, so the business owner is faced with meeting up to eight weeks of payroll before getting paid.
Talk about a cash flow crunch.
Luckily, there’s a solution.
Mental health nurse staffing factoring can easily fill in the cash flow gaps, and here are some invoice funding selling points for you to share with your potential mental health nurse staffing clients:
- When a business owner chooses to factor their receivables, he/she can get cash the same day he/she issues an invoice.
- Invoice factoring provides unlimited capital, as it is the only type of business financing that grows with a business owner’s sales.
- A mental health nurse staffing factoring company assumes the risk of bad debt, which eliminates any expense from the business owner’s income statement.
- Most psychiatric nurse staffing factoring firms handle all invoice processing (i.e. posting payments) and provides professional collections services, so the business owner can dedicate his/her time and resources to marketing and securing new accounts.
- Unlike the bank loan application process, mental health staffing factoring is quick and easy. It’s rare that a factoring company will ask for a history of profitability, business plans or personal financials.
- Moreover, mental health nurse staffing agencies don’t need good credit or a long-term operating history to qualify for AR factoring services—all they need are creditworthy customers.
Once you have the mental health staffing business owner convinced that accounts receivable factoring is the best financing option for his/her business, the next step is to pair them with a funding source that has experience funding various kinds of nurse staffing agencies. Doing so creates a win-win scenario for all parties involved—The business owner has access to immediate funds, the factor has the ability to work with a new company, and the broker receives a steady income of commissions.
Nikki Flores is a Consultant Liaison for PRN Funding, LLC, which is an extraordinarily focused niche player in healthcare factoring.
PRN Funding exclusively factors the accounts receivable of companies that sell goods or provide services to healthcare providers.
You may also enjoy these Factoring Training Articles by Nikki Flores:
How to Qualify a Factoring Prospect by Asking Three Simple Questions
Invoice Factoring: An Alternative Financing Option for Outsourced Medical Billing Companies
How Factoring Benefits Private Duty Care Agencies