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 … [Read more...]
What is Non-Recourse Factoring?
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The most popular form of invoice financing is “non-recourse” factoring, accounting for roughly 85% of all factoring transactions. Just like the name implies, the client is not financially obligated to the factoring company in the event an approved and funded invoice is not paid. … [Read more...]
What is Recourse Factoring?
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When looking for a Factoring company it is helpful to understand if their funding methods are “recourse” or “non-recourse” factoring. With recourse factoring the company selling the invoices (the client) is basically guaranteeing the invoice will be paid in full. … [Read more...]
Medical Coding Factoring Terms
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When a medical coding service is considering selling their receivables to a factoring firm, it's important to familiarize themselves with some common factoring terminology. This is a quick reference guide outlining some of the more commonly-used factoring terms to help medical coding business owners navigate seamlessly throughout the entire factoring process. ACH (Automatic Clearing House) - One method factoring companies use to electronically transfer funds into an Account Creditor's account. When an ACH is initiated, the funds are made available electronically in the Account Creditor's account on the next business day. Account Creditor - You, the client and provider of medical coding services. Accounts Receivable - The money … [Read more...]
Recourse and Non-recourse Factoring
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The big difference between recourse factoring versus non-recourse factoring is the party at risk for bad debt. Understanding this important distinction will help a business select the right financing terms when factoring invoices and accounts receivable. … [Read more...]