Nurse Staffing Companies: How Factoring Will Get You CapitalA hospital cannot operate successfully without a nursing staff. Normally, there are more nurses than doctors in a hospital. According to the WHO (World Health Organization) for proper delivery of healthcare in a hospital, the ideal ratio is 3 nurses for every doctor. That is why nurse staffing companies had their hay day at the time when the hiring of nurses from all around the world was at its boom several years ago.
However, medical staffing companies encounter financial problems because of their usual payment terms. Most of their medical invoices are covered by insurance companies specializing in healthcare services. Since processing of payments takes time, staffing companies inevitably run into all kinds of financial problems. Bills are not paid on time, salaries of personnel are delayed, and suppliers are not paid for the materials they deliver.
Valuable Help from Factoring Companies
If a nurse staffing company continuously experience cash flow problem, they will be forced to have a hand-to-mouth existence. The company will be very concerned about making ends meet and never have the time or the luxury of thinking about the future.
You can get out of this rut by seeking the help of a factoring company. You can sell your customers’ invoices to this company. They are willing to buy them at a certain discount that you will both agree on. In doing so, you are able to enjoy certain advantages.
When the factoring company agrees to buy your invoices, you will have immediate cash. There will be no long processing time which is always what commercial banks do. Banks will force you to wait for 30 to 90 days while they process your emergency loan application. A factoring company will usually release your money within a couple of days only. The amount you will receive will depend on the total amount of the invoices that they bought from you.
One reason for the quick release of your money is: there is no laborious documentation involved in the process.
No Credit Checks
Factoring companies are not concerned with your credit rating or your credit history. What they are after is the amount of money you have in your customers’ invoices. Actually, they are more interested with the credit rating of your customers, especially the big ones.
No Collateral Requirement
Once the factoring company has your invoices, they will facilitate the release of your money. As far as they are concerned, your customers’ invoices are as good as cash, though still to be collected. Therefore, since they already have your “money” in their hands, they will not bother asking you to cover the financial assistance they will give with collateral.
This is the best financial remedy for nurse staffing companies experiencing cash flow problems. Since you already have issued your invoices to your customers, you can sell it to a factoring company such as NeeBo Capital. They have the lowest interest charges in the industry, starting at 0.59% only. They don’t require monthly minimums and they have very flexible financial arrangements.
Why Choose Us?
Rates at 0.59% - 1.5% for 30 days
Quick Link to Financial Resources:
|Purchase Order Financing||Accounts Receivable Financing||Asset Based Lending Options|
General Articles about Accounts Receivable Financing and Factoring:
» 08/01/2012 Debt Financing or Off Balance Sheet Financing?
» 09/15/2011 What to know when selecting a Factoring Company