Invoice Factoring for Nurse Staffing Agencies: Relieves Financial Stress and Provides Reliable Payroll Funding
The healthcare industry is constantly evolving and changing to meet both patient and regulatory demands. Home care/health is expected to increase by 104% over the next several years. As hospital offerings expand to include traveling nurses and other community based services, the demand for qualified nurses will increase. On top of the market needs an estimated 700,000 nurses are set to leave the workforce over the next 8 years.
While some hospital systems are turning to recruiting outside of the United States and offering tuition reimbursement to fulfill their nursing shortages; other health care providers will turn to nurse staffing agencies to fill positions. Healthcare providers benefit from using a nurse staffing agency to decrease operational expenses associated with recruitment, payroll and management of temporary nurses.
Why Should Nurse Staffing Agencies Take Advantage of Invoice Factoring
The increase in demand will keep nurse staffing agencies busy over the next several years. The reliance on customer payments from accounts receivables is an underlying fear. Awaiting 30-90 days for payments can quickly cause operational issues depending on when the agency can bill for their services.
The biggest challenge is making sure your nurses and administrative staff are paid. Worrying about how to cover payroll should be the least of your agencies worries. Invoice factoring for nurse staffing agencies is an ideal solution to provide your business with a reliable source of working capital.
How Does Invoice Factoring Work for Nurse Staffing Agencies
Invoice Factoring is a working capital solution that generates cash flow through selling outstanding invoices to a funder at a discounted rate. Once the invoice is collected, the financing company provides the nurse staffing agency with the remainder of the invoice amount minus any fees.
What are the Benefits of Invoice Factoring for Nurse Staffing Agencies
There are several benefits to using a working capital solution for nurse staffing agencies.
Payroll Funding and Expenses Are Covered
Quick access to financing when you need it ensuring peace of mind that your placements and staff will be paid on time. As well as, having working capital on hand for operational expenses and recruitment.
Grow Your Business
As the industry continues to grow so will the demand and this can cause capital to be strained. By factoring accounts receivables your nurse staffing agency has a reliable working capital line that grows with your business.
Generate Cash Flow Without Taking on Additional Debt
While building debt can be a positive too much can have the opposite effect and can make securing a traditional commercial loan difficult. Invoice factoring is a great alternative to access capital without acquiring any new debt.
Credit Based on Customers
Even if your business has had inconsistent financials, with invoice factoring the credit-worthiness of your customers are weighted more in the decision making process. Making it easier to secure working capital.
While we can’t solve the markets need for qualified nurses. We can provide a reliable working capital solution to support weekly payroll, operating costs, and recruiting expenses. Rest assured, our solutions provide you with quick access to capital to keep your nurse staffing agency running smoothly.