What is Accounts Receivable Factoring?

Cash flow problems often occur at the early stages of business development or during periods of rapid growth.

Cash flow especially becomes a problem in industries where it’s typical for completed work to go unpaid for 30, 60, or even 90 days after issuing the invoice. Thus, when growing companies start experiencing growth pains, they first try to Read more

Why Temporary Nurse Staffing Companies Make Great Candidates For Factoring

There are two instances when a temporary nurse staffing agency could encounter a bit of a cash flow crisis. The first is when the agency is just starting out, and the second is when it hits a period of rapid growth.

To a bank looking at a loan application, neither situation is attractive. On the contrary, to some factors both of these situations might sound very appealing, and this article explains why. Read more

Medical Billing Companies Increase Cash Flow Through Factoring

While the public’s confidence on the economy continues to spiral downward, the demand for health care in this country continues to grow.

According to the National Coalition on Health Care, the U.S. spent approximately 17% of its GDP in 2008 on health care costs. That percentage is expected to jump to 20% by 2017. Read more

Busting Healthcare Factoring Myths

There are a lot of rumors that factoring is not an ideal payroll funding solution for healthcare staffing business owners and entrepreneurs.

However, many of those rumors are a result of misinformation and poor staffing factoring research methods.

This article will help debunk some of the more common factoring myths Read more

Accounts Receivable Factoring for Nurse Staffing Companies

The cash flow gap is a common challenge to nurse staffing agencies.  It can take months for the hospitals and nursing homes to pay invoices for staffing services yet the nursing staff needs paid every week or two.

Factoring companies can help by providing small business funding to Nurse Staffing Agencies, but should they choose recourse or non recourse factoring?

This article from guest author Philip Cohen of PRN Funding explains the difference.

Recourse and Non-Recourse Nurse Staffing Accounts Receivable Factoring: What’s the Difference?

By: Philip Cohen

What is nurse staffing recourse factoring?

For the most part, recourse factoring is the most common and the most affordable nurse staffing financial help available to business owners. In this type of factoring arrangements, the accounts receivable factoring company will require an agency owner to buy an invoice back if the client does not pay within a specified amount of time. Moreover, the nurse staffing agency owner accepts full credit risk for any and all accounts receivables that it sells to the factoring company.

What is nurse staffing non-recourse factoring?

The other accounts receivable factoring option that owners have is non-recourse factoring. In a nutshell, non-recourse nurse staffing financing agreements hold the factor entirely responsible for an unpaid invoices if the following is true:

If the hospital, nursing home or vendor management system (VMS) goes bankrupt during the time an agency owner’s invoice was factored.

If the hospital, nursing home or VMS goes out of business during the time an agency owner’s invoice was factored.

It’s important to keep in mind that non-recourse accounts receivable factoring does not cover the following situations:

• Very late payments when there is no insolvency
• Disputes/challenges with nurse staffing services
• General collections issues

Naturally, both options have pros and cons that an owner should consider before choosing which type of agreement to make. Typically, they will receive lower factoring fees and/or higher advance rates if they choose to enter into a recourse factoring relationship. On the other hand, a non-recourse accounts receivable factoring arrangement buys nurse staffing business owners’ protection if a hospital nursing home or VMS goes bankrupt. Ultimately, agency owners need to review their accounts receivable factoring contract in detail with a lawyer to determine which type of arrangement, recourse or non-recourse, is the best fit for their agency.

About the Author: 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. 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: Ezine Articles – Recourse and Non-Recourse Nurse Staffing Accounts Receivable Factoring: What’s the Difference?

Accounts receivable factoring is available to a variety of industries including medical, construction, transportation, manufacturing, staffing, and other business to business services.  Factoring companies provide an advance on invoices so businesses don’t have to wait 30-60 days for payment from customers.

Accounts Receivable Factoring – An Alternative Funding Option For Small Businesses

Because of their lack of financial sophistication and size, today’s small businesses continue to face the hardships brought on by current economic challenges.

Many firms struggle to maintain their bank credit facilities, and securing a new line of credit or increasing a company’s current limit is nearly impossible.

So if the lending wells have dried up, what’s a small business owner to do?

Capitalize on the benefits of accounts receivables factoring. Read more

The How To Guide – Allied Health Staffing Factoring

The notion of selling allied health receivables to a factoring firm may sound like a difficult concept to understand, but in reality, nothing could be further from the truth. Read more

Freedom From Factoring Fees

In an effort to combat the affects of the crumbling economy, service-oriented businesses have been getting creative with new ways to generate money.

Unfortunately for consumers, that creativity often translates into price hikes, additional fees, reduced services or cut backs on productivity. But does it have to be that way? Read more

Investor Spotlight: Healthcare Factoring with PRN Funding!

Factoring account receivables is helping health care companies through these tough economic conditions opening the door to earning opportunities for cash flow consultants.

FactoringInvestor (FI) caught up with Phil Cohen, Founder and President of PRN Funding, LLC, to fill us in on the specialized niche of healthcare funding.
Read more

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