Operating Your Travel Nursing Business With The Invaluable Help Of FactoringNo business is perhaps as fulfilling, literally, as the nursing business. But the kind of entrepreneur that this business requires is someone who has the ability to make quick decisions and the acumen to stay afloat amidst difficult financial situations. Running a business that involves constant spending can drain the coffers frequently. What can be nerve-racking is when the cash box is empty and no funds are forthcoming because your clients haven’t paid.
Not a few travel nursing agencies have gone into bankruptcy because their cash flow management got them into trouble in more ways than one: workers refuse to work because their salaries are delayed, equipment is not upgraded to increase productivity, and other payables such as utility bills have not been paid. When your customers are not able to pay you for services of your company which have already been rendered, you are forced to look for funds elsewhere to sustain operations while waiting to get paid.
How Factoring Works For Business
Should you go to a bank or lending institution? You can but it will take a longer time for your documents to be processed in order for your loan to be approved than to pay all the expenses you have incurred in the mean time. Loans from traditional financial agencies often mean foreclosure, something no entrepreneur would take if there was another way to access funds easily and readily. Fortunately, there is, and it’s called factoring, the invaluable help that your business needs.
A factoring company’s specialty is financing your invoices for as long as these are payable by clients who are credit-worthy. Factoring helps accelerate your company’s revenue by intermediating transactions between you and your clients. The factoring company can advance up to 80% of your invoices and release the much-needed funds to you between 24 and 48 hours. The balance of 20% is given to you as soon as your clients pay the full amount. The factoring company’s fee and commission are discounted from this balance.
Three Requirements to Obtain Additional Funds
Why only 80%, you might ask, and here is the answer: the 20% “cushions” the possibility that there may be short payments as a result of credit issues or there may be disputes along the way. The funds from an invoice are quickly rebated upon completion of the payment in full by your customers. When your customers pay on time and in full, your company’s credit rating will improve and most factoring companies will offer you higher than average advance rates.
The factoring company requires that your clients are creditworthy because this, in effect, is the kind of collateral that supports your transaction with them. Also, your invoices should be free from legal and tax problems and are not encumbered by any liens. These requirements for funding your cash flow are definitely more flexible than what banks or lending institutions can ever offer your travel nursing business.
What NeeBo Capital Can Offer Your Business
When you have decided that a factoring company would be the most convenient solution to your cash flow management, consider NeeBo Capital, the Boca Raton, Florida-based factoring company with a worldwide network base of distributors, manufacturers, service providers, wholesalers, technology and staffing services, and professional companies.
Why Choose Us?
Rates at 0.59% - 1.5% for 30 days
Quick Link to Financial Resources:
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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