How to choose a funder for your nurse staffing agency
Factoring for Nurse Staffing Agencies
The Best Invoice Factoring Finance Company for Nurse Staffing Companies
Through the Covid era, nurse staffing companies have been busier than ever. More than 87% of respondents in a New Jersey survey felt their facilities were understaffed. The understaffing issues have caused delayed payments to Nurse Staffing Companies. Many Nurse Staffing firms operating on NET30 and NET60 credit terms inevitably run into cash flow issues.
Cash flow issues from extended credit terms in the nursing staffing industry can cause Nurse Staffing Companies to shut down operations. The extreme weekly payroll demands from placing nurses and other allied health professionals in the field create a lack of available capital.
The Best Nurse Staffing Factoring Company helps eliminate the burden of slow-paying customers. Nurse Staffing Invoice Factoring turns unpaid invoices or receivables into cash funding. Bankers Factoring injects fast working capital into Nurse Staffing Agencies, solving your cash flow issues.
How does Nurse Staffing Factoring work?
Nurse Staffing Factoring is a commercial financing vehicle that turns the staffing agencies’ unpaid accounts receivable (A/R) into quick cash flow. The Nurse Staffing Company sells its open invoices to Bankers Factoring in exchange for two cash disbursements.
The first cash disbursement is called the initial cash advance. Upon approval of your invoice factoring application, Bankers Factoring direct deposits up to 93% of the total AR value. The initial cash advance takes place the same day as approval. Learn more about Bankers Factoring Same Day AR Factoring Financing.
The second cash disbursement is called the rebate or discount. It is a final payout of your open A/R balance, less our small factoring fee. When Nurse Staffing Agencies sell their open invoices, they bypass their customers’ wait for two or three months for payment.
Invoice Factoring provides a cash flow solution for nurse and allied health staffing agencies struggling with payroll funding and general expenses.
Learn more in our previous article, “What is medical factoring?“
What are the benefits of Nurse Staffing Factoring?
When a Nurse Staffing Company sells its invoices to Bankers Factoring, it solves a cash flow gap in their payables cycle. The main reason Nurse Staffing Agencies benefit from factoring is the cash advance to meet weekly payroll. Payroll funding is the most significant expense for any staffing company.
Invoice Factoring Financing allows nurse staffing agencies to eliminate the long days outstanding (DSO) period. The consistent cash flow from nurse staffing factoring removes the burden of using costly high-debt financing tools.
If your Nurse Staffing Agency has resorted to costly Merchant Cash Advances (MCAs) in the past, contact us today to help more efficiently finance your firm.
Advantages of Nurse Staffing Factoring:
- Same-Day AR Factoring Financing
- Up to 93% cash advance to cover weekly payroll
- No balance sheet debt
- Eliminates cash flow gaps
- Quick funding process
Nurse Staffing Factoring Example
Nurse Staffing Agency XYZ LLC is running out of cash, and they need to find a solution to cover payroll next week. This is a common situation for Nurse Staffing Agencies. The first step is to complete the Bankers Factoring Funding Application. Once your application is approved, the funding process is completed the same day.
Nurse Staffing Agency XYZ LLC agrees to selectively factor or sell a set of invoices for $200,000. Bankers Factoring agrees to advance 93% or $184,000. The example factoring rate is 1.2% per 30-days.
Bankers Factoring direct deposits $184,000 into Nurse Staffing Agency XYZ LLC business checking account. Once the customer pays the open invoices to Bankers Factoring, we will issue the final rebate. In this example, payment was received in 30-days.
To close the transaction, Bankers Factoring direct deposits $13,600 into the Nurse Staffing Agency LLC business checking account. Bankers Factoring collected its $2,400 or 1.2% factoring fee.
What types of Nurse Staffing Companies can use Invoice Financing?
Nurse Staffing Agencies have different niches and specialties, and we work with agencies seeking the highest caliber of talent. We work in many segments, including:
- Travel Nursing
- Occupational Health Nursing
- Pediatric Nursing
- Registered Nurses (RN)
- Licensed Practical Nurses (LPN)
- Clinical Nursing
- Government Nurse Staffing
- Short Term and Temporary Staffing
We understand how critical paying your staff on time is to your continued business success. Nurse Staffing Factoring can help retain your best talent and attract great new talent. As business owners, we feel better knowing we have the working capital to fund our operations.
How to Qualify for Nurse Staffing Factoring
Funding Nurse Staffing Factoring can be completed within one or two weeks of your funding application. Invoice Factoring is easier compared to strict large financial institutions’ underwriting standards. The invoice factoring approval process depends mainly on the creditworthiness of our client’s customers.
Business Owners and Entrepreneurs lacking solid financial history or credit benefit from the invoice factoring due diligence process.
The main components of nurse factoring approval include the following:
- Customer Creditworthiness: the customer is also called the account debtor. They are responsible for paying the open invoice Bankers Factoring purchases.
- No Liens Against ARs: if the IRS has a Lien on your ARs from back taxes, that typically disqualifies clients. However, learn more about your options in our article Lien Subordination. Essentially Bankers Factoring needs the first claim to your open invoices.
- Tax Compliance: we verify your quarterly employment filings 940 and 941 to ensure you are in good tax standing. Why Do Factoring Companies Ask for Tax Documents?
- All Required Documentation: to fund the Nurse Staffing Factoring application, we need all 8 Requirement Documents to provide cash flow financing.
The Bankers Factoring Nurse Staffing Advantage
The Best Nurse Staffing Factoring Company provides a cash flow financing solution to firms lacking liquidity. Bankers Factoring is unparalleled with our non-recourse invoice factoring program for Nurse Staffing Companies. We take on the credit risk in our factoring agreements, providing our clients A/R Insurance.
Staffing Agencies needing immediate funding benefit from our up to 93% same-day cash financing to meet strict payroll demands. Nurse Staffing Agencies can unleash their growth potential through invoice factoring financing.
The Best Nurse Staffing Factoring Company creates positive cash flow streams enabling business owners to execute sales growth plans. Bankers Factoring goes one extra step by providing A/R Management and bad debt protection. We act as your outsourced receivables department, allowing your internal staff to generate results.