Archive for June, 2011

Summer Factoring Broker Promotion Begins

Tuesday, June 28th, 2011

PRN Funding, LLC is running a special summer factoring broker promotion, and we wanted to spread the word to the factoring brokers and cash flow consultants who read The Factoring Blog.

Here are the details of the promotion:

Refer a new medical staffing prospect, get a $50 gift card of your choice!

You Get Paid Even if We Don’t Close the Deal!

AND

The person who refers the most medical staffing leads will win an iPad!

NOTE: Brokers must submit a minimum of three leads to qualify to win the iPad.

iPad

Contact Nikki Flores when you have a qualified prospect*, and we’ll do the rest!

nflores@prnfunding.com

866-776-5407

Choose from the following gift cards:

Amazon Olive Garden
AMC Movie Theaters Red Lobster
Applebees PF Changs
Best Buy Sears
iTunes PF Changs
Golfsmith Starbucks
Kohls Ticketmaster
Nike

Act now! This promo ends September 30th!

*Upon evaluation and approval that the following criteria have been met for a referral, PRN Funding will mail out a $50 gift card (of the broker’s choosing) directly to the referral source:

  1. The prospect must be an organized entity (Corporation, LLC). Sole proprietorships, general partnerships and DBA’s do not qualify for this promotion.
  2. Broker/cash flow consultant must, at minimum, informally introduce PRN Funding, LLC to the prospect. In other words, PRN Funding will not make any cold calls as part of this promotion.
  3. The prospect must have a legitimate need and interest in accounts receivable factoring.
  4. PRN Funding must receive a completed application and accounts receivable aging report from the prospect.

Factors Stay Busy Due to Credit Squeeze

Thursday, June 23rd, 2011

A small business owner who is trying to grow his/her business during a booming economy will hit some speed bumps when applying for traditional financing if he/she cannot show an extensive profitable operating history. Throw in the current economic climate, and the chance of an entrepreneur obtaining a conventional bank loan is slim to none.

When loans are no longer an option, business owners have to find a short-term funding option to keep them from dipping into their personal savings accounts or having to rely on friends and family for operating cash. Over the past decade, the main fallback has been small business credit cards. During better times, credit card companies actively pursued the small business market. Entrepreneurs were enticed with low introductory interest rates and high credit limits. In addition, banks started offering small credit lines to entrepreneurs who didn’t meet conventional loan requirements, and vendors started relying on the efficiency of credit card payments. Needless to say, the small business credit card caught on like rapid fire. Today, nearly 60% of the nation’s small businesses rely on credit cards to help fund their daily operations, according to the National Small Business Association.

Yet as the economy worsens, entrepreneurs are seeing their interest rates going up and their credit limits going down. With credit card delinquency as high as 12 percent among small business owners, bankers and credit card companies say the only way to decrease the risk in their portfolios is to make some changes with their small business accounts. As a result, nearly three-quarters of small businesses have seen a large cut in their credit limits over the last six months. Now that access to both bank loans and credit cards is hard to come by, where can the nation’s 27 million small business owners turn for funding?

Enter factoring. Now more than ever, entrepreneurs across the nation are in desperate need of a factoring firm that understands the intricacies of today’s funding marketplace.

If you think about it, the process of factoring receivables is very similar to using a credit card. For example, many small business owners use a credit card to purchase additional inventory and then pay down that bill as their customers pay them. With factoring, a business owner could just as easily sell his/her invoices to an invoice factoring firm and receive cash immediately on those invoices. In turn, they can use the cash to purchase additional inventory. In both instances, the business owner has readily available cash to purchase more supplies. In fact, the two funding mechanisms sound almost exactly the same.

However, there is one very important difference. When credit card companies and banks define a credit line and interest rate for a small business credit card, it’s based on the financial strength of the small business or its owner. During an economic recession, credit card companies view the normal ups and downs of a struggling small business as too risky. However, with factoring, the credit decision is not based on the business’ credit at all. Rather, the lending decision is based on the creditworthiness of the company’s customers. Keep in mind that small businesses routinely sell to larger, more established companies. Because these companies are financially sound, they have the ability to continue paying their vendors, even during an economic decline. So in other words, when business owners use factoring, they can literally leverage the creditworthiness of their customers, which leads to lower fees and higher credit limits.

Now as I previously stated, there are 27 million small business owners in America right now who could be looking for another form of invoice funding because of the current state of the economy. Factoring is the perfect funding solution for those entrepreneurs who are unable to qualify for a traditional line of credit or are having difficulty negotiating reasonable rates on a small business credit card.

Tips to Help Small Business Owners with Slow Paying Customers

Thursday, June 23rd, 2011

Did anyone happen to see the article in Costco’s publication that discussed factoring as an alternative financing route for small business owners? If not, you’re in luck, as the invoice funding experts at The Factoring Blog has decided to share parts of the article that we thought would be interesting for our factoring blog readers.

The article, Tips for Dealing with Slow Paying Customers, first explained how larger corporations are basically informing their smaller vendors that they will be paying their bills late. This kind of situation is forcing small business owners to provide free loans to larger companies, which inhibits their own growth.

The article then discusses a couple of ways that small business owners can respond to the unfortunate circumstances.

John Barrickman, a Costco member and president of New Horizons Financial Group, suggested for small business owners to look into their uncollected receivables, and beef up their collections efforts. He also encouraged small business owners to start utilizing some banking features to help them collect quicker, such as lockboxes, remote payments and electronic processing. He also said that when one or two of a small company’s customers slow down their payments, it’s time to really focus a lot of energy on getting the rest of its customers to pay promptly.

Lisa Aldisert, another Costco member and president of Pharoas Alliance, Inc., suggests for entrepreneurs to take another look at their payables procedures. Aldisert said, “Stretch your payables as long as possible without hurting your vendors, unless you’re offered a discount for prompt payment…[just] don’t be late; you want to maintain excellent trade credit.”

Finally, Tracy Eden (Costco member and president of the Commercial Finance Group) suggested for these struggling small businesses to consider accounts receivable factoring as a way to improve their cash flow. A business owner can sells its receivables to a factor at a discounted rate to receive cash upfront instead of waiting months to be paid by their customers. Factoring firms typically advance between 70-90 percent of the invoice up front. When the factor receives payment on the invoices it purchased, it give the difference between the advance and its fees back to the business owner. It’s a great way for small companies to improve their cash flow and maintain good vendor relationships.

Ways to Market Your Medical Billing Service

Monday, June 20th, 2011

Mother and daughter, Alice Scott and Michele Redmond, wrote an excellent article in Issue 6.4 of BC Advantage. The duo are coauthors of 11 books on medical billing and medical credentialing and co-owners of Solutions Medical Billing Inc. The medical billing invoice funding experts at PRN Funding thought the information within the article would be quite beneficial to our medical billing business owner readers. Written below is a brief summary of the article, which appeared on pages 20-21 of the medical billing and coding magazine.

The ladies emphasized the fact that those medical billing company owners who are serious about making it in the business “learn to market effectively and quickly.” They go on to say that there are a number of different ways to market a medical billing service, and that the key to being successful is developing a marketing plan, and then sticking to it.

Utilizing referrals is a great way to get started. However, many business owners assume that referrals can only come from clients. So what do you do if your medical billing service is new, and you don’t have any clients yet? Remember that referrals can come from sources other than clients. Alice and Michele suggest asking yourself this question when looking for good referral sources: “Who do you know that is aware of your abilities and strong points?”

For example, you could reach out to doctors you worked for in the past and ask them to write a referral for you medical billing company, or check in with a teacher you remember from when you took medical billing classes, etc., etc.

Finally, the medical billing industry authors suggested that business owners “get someone to offer some inside information that gives you a little leverage in getting in to see a doctor about your service.” Tell your general practitioner about your medical billing business. Even if he/she cannot use your medical billing services, perhaps they could refer someone else who can.

The women concluded the article by reminding medical billing entrepreneurs that word-of-mouth marketing can only take your business so far, and that sooner or later, you will have to spend money to make a real marketing impression.

For medical billing companies who are just getting started, it might be hard for them to acquire the cash needed to implement a strong marketing program. Enter medical billing accounts receivable factoring. Startup medical billing companies can sell their invoices to a medical billing factor, and get cash upfront to cover those marketing costs. Visit PRN Funding’s medical billing factoring page to learn more about this financing alternative.

Medical Transcription Invoice Factoring Case Study

Tuesday, June 14th, 2011

NOTE: This medical transcription factoring case study can also be found on PRN Funding’s web site.

Established, But Wanting to Grow…
Paula’s medical transcription business was five years old and was doing well. Her medical transcription service provided transcription on a regular basis for a number of community hospitals, clinics and physician offices. Things were running smoothly, but Paula was not satisfied. She really wanted to see her medical transcription service grow. She had a number of ideas on how she could expand her business and she knew of some definite growth opportunities in the healthcare industry. Her first plan was to attend a trade show for health information managers that would hopefully land her some new and bigger clients.

Medical Transcription In Demand…
The trade show turned out to be a huge success. Paula had a list of hospitals that were in need of a reliable and professional medical transcription service. Paula was eager to begin servicing these new large clients, but in order to meet the demands of these hospitals her business would need a major overhaul. She would have to increase the size of the dictation system, have interfaces built and recruit and train new transcriptionists. She was going to incur large start-up costs in order to prepare for the new clients, and she was also going to see a tremendous increase in her on-going expenses, especially payroll. In the meantime, it would be many weeks before any of the new clients would pay for her company’s medical transcription services.

Supplying the Demand…
Paula wondered how she would get the money that she needed in order to accommodate the new clients and expand her medical transcription business. She first asked her bank for the working capital that she needed, but she could not meet their requirements. The bank instead recommended that she call a medical transcription accounts receivable factor to provide her with the instant cash relief that she needed. Paula searched the Internet and found PRN Funding, LLC, an accounts receivable factoring company that specializes in funding businesses in the medical transcription industry. PRN Funding looked like a perfect match for Paula’s medical transcription business and she was hoping that they would have the solution for her cash flow problems.

Extend Financing to a Growing Business Without a Loan…
Paula immediately completed an online factoring application and electronically submitted it to PRN Funding via the Internet. She received a phone call later that same day from one of PRN Funding’s account specialists, who walked her through the factoring process. She learned how factoring her medical transcription accounts receivable would provide her with the working capital she needed to expand her medical transcription service.

Factoring Helps an Established Business Grow…
Paula was thrilled to learn that she could factor as few as one or as many as all of her clients and that there were no minimum amounts to factor. With no binding term contracts, she could factor as long as she needed without having to commit to a specific length of time. All she had to do was invoice her clients as usual and then submit the invoices to PRN Funding. PRN Funding would verify and purchase the invoices and provide Paula’s business with a cash advance within hours. PRN Funding provided the answer that Paula needed to expand her medical transcription business and to service the new clients. By factoring her medical transcription invoices, Paula was able to grow her MT business to a whole new level.

Would you like to learn more about how PRN Funding can help your medical transcription service? Apply for medical transcription factoring now!

Temporary Nurse Staffing Factoring Case Study

Friday, June 10th, 2011

NOTE: This temporary nurse staffing factoring case study can also be found on PRN Funding’s web site.

An Opportunity for Acquisition…
Barry was the office manager of a temporary nurse staffing company for many years when he was approached with a great business opportunity. The owners of the business were ready to retire and offered to sell their medical staffing company to him. The owners wanted to see their business continued, so they hoped that Barry would agree to buy the business and take over the ownership duties. If not, they would have to look to sell to an outsider running the risk of losing what made the agency unique. They felt that Barry was the best fit for managing the business. He would ensure the on-going success of their temporary nurse staffing company. The owners were even willing to work out a purchase plan with Barry so that he could make payments over time rather than all at once, but he would still need to make a significant down payment in order to secure ownership of the nurse staffing business.

Collateral Needed for Investment…
This opportunity was extremely exciting for Barry and he felt that it would be a great career move. He knew the ins-and-outs of the nurse staffing industry and was confident that he would continue to operate profitably. In a few years, with aggressive sales to area hospitals and nursing homes, he would be able to increase profits for the nurse staffing business. Barry only had one concern. He had no idea where he was going to get the money he needed for the down payment. Temporary staffing organizations simply don’t have the type of hard assets banks require as collateral. Also, the sellers were willing to take a note financing most of the business, but in return they would not allow any senior debt on the balance sheet. If he absolutely had to, Barry could guarantee the loan personally, but that was his absolute last option. There had to be another alternative for Barry to secure the working capital that he needed.

Cash Available in the Outstanding Receivables…
Looking over the financials, Barry realized that there was a significant amount of accounts receivable outstanding. The owners had not been aggressive in collecting or managing their accounts receivable. The services had already been provided, the employees had been paid, but the invoices were still outstanding. Barry remembered seeing an advertisement in one of his staffing journals for PRN Funding, LLC, a temporary nurse staffing accounts receivable factoring company that turned receivables into cash immediately. Promptly, he called PRN Funding and spoke to an account specialist for his business cash flow solution.

A Successful Nursing Staffing Company…
Just as the owners of the nurse staffing company were preparing to sell him the business, Barry was able to establish a relationship with PRN Funding. PRN Funding bought the outstanding invoices, even the invoices that had been issued months ago, and provided the temporary staffing business with an immediate cash advance. Barry used the funds from the cash advance to make the down payment on the business. PRN Funding was also able to actively and professionally collect on the outstanding accounts receivable, freeing up more time for Barry to concentrate on operating his business and ensuring the continued success of his nurse staffing company.

Would you like to learn more about how PRN Funding can help your healthcare business? Apply for healthcare factoring now!

Healthcare Vendor Receivables: A Unique Niche in Medical Receivables Industry

Wednesday, June 8th, 2011

Part Three

Over the past couple of weeks, I have posted two parts of the healthcare cash crunch series that originally appeared in the American Cash Flow Journal, and was re-posted on PRN Funding’s web site. I first discussed the financial irony in our country’s healthcare system. Then in the second post, I described how factoring brokers and cash flow consultants can help resolve the healthcare industry’s cash flow problem by matching vendors who sell to healthcare institutions with the appropriate factors. Finally, I will conclude the series with an in-depth look on how to find the right kind of factor for your healthcare clients.

Each year, the United States’ government allots $1.2 trillion towards healthcare spending. However, one-third of our nation’s hospitals is currently operating in the red, and another one-third is barely able to stay afloat in the industry. Herein lays the financial paradox. Even though 14 percent of the federal budget is dedicated to healthcare every year, there are complexities in the government-run Medicaid and Medicare programs, which slows down the reimbursement process. In addition, an aging Baby Boom population and the recent increase in uninsured Americans are also placing unwanted tension on the healthcare system.

The aging Baby-Boomer generation is only the beginning of a new surge in the oldest adult segment of the American population. According to the U.S. Census Bureau, one in five Americans will join the 65-plus age group by the year 2050. The overflow of elderly adults will place a significant amount of stress on the healthcare system because the surge in elderly adults will drastically increase the demand for services that treat and manage chronic and acute health conditions.

Another important matter to keep in mind is the growing number of uninsured people in our country. A whopping 45 million Americans were uninsured last year, and almost half (20.6 million) were full-time employees whose employers opted not to provide health coverage because premiums were too expensive. In addition, the majority of unemployed Americans living in poverty as well as elderly retired adults rely on Medicare and Medicaid to pay their medical bills. Even though the government provides health insurance coverage for those who could not afford it otherwise, Medicare and Medicaid are notorious for making inadequate payments. More often than not, these federal programs pay slowly and the medical costs are often higher than the plans are willing to remit. And thus, the circular pattern begins. Healthcare institutions have to wait to be paid for their services, so they don’t have enough funds to pay their bills on time. Translation: Lying at the base of this slow-paying pyramid and perhaps suffering the most from the cash crunch are those vendors who sell to healthcare institutions.

This is where factoring brokers enter the cash flow equation at the base along with those vendors. As cash flow consultants, you possess the necessary ability to reach out to vendors who sell to healthcare institutions, recognize their unique position in the healthcare cash flow equation and match them with an ideal funding source. In other words, the solution to this complicated problem lies in your hands. All you have to do is find the right kind of financial assistance for these specific vendors. But before you jump the gun, allow me to elaborate a bit more on the funding options that are available to these vendors.

The most practical funding solution for these healthcare vendors is accounts receivable factoring. Oftentimes, when companies are just starting out or going through a period of rapid growth, their cash flow gets out of sync with their business goals. For example, a company might want to expand, but slow payments from current clients prevent them from having enough immediate cash to service new clients or to add employees to their payroll. By selling their accounts receivables to a factor, a healthcare vendor can maintain their present responsibilities to payroll and operations, without having to wait months for the healthcare institutions to pay them.

When handling these kinds of healthcare deals, it’s important to understand how time comes into play with the invoicing process. Because they are paid slowly or inadequately, many nursing homes and hospitals provide their vendors terms of net-60 or longer, which means that they won’t even consider paying an invoice until it is already two months old. So it’s not so much a question of whether or not healthcare institutions will make payments on an invoice, it’s more of a question of when they will be able pay their vendors. If vendors that serve healthcare providers were to factor their slow-paying invoices, they could easily alleviate their cash flow problems by gaining immediate cash, rather than wondering how long it will take to get paid by their customers.

Now that you understand how factoring can help the healthcare financial crisis, it’s time for you to choose the right factor for the job. First, be careful not to confuse third-party medical receivables with healthcare vendor receivables. Third-party medical receivables introduces a third party to the invoicing process. For example, when an elderly person goes to the doctor for a check-up, that person will pay a co-pay for the visit in conjunction with his/her insurance, who will pay the remainder of the bill. Because there are three parties involved in the payment process (the patient, the insurer and the doctor’s office), the factoring deal is referred to as third-party medical receivables.

Conversely, there is another side to healthcare receivables, which often goes unnoticed in the factoring industry, known as healthcare vendor receivables. Healthcare vendor receivables come into play in the factoring industry anytime a medical provider chooses to purchase products or services from a vendor outside of its facility. For example, a hospital could hire a temporary nurse staffing agency to fill vacancies during the holidays.

There is no question that both third-party and vendor-side receivables can and should take advantage of the cash flow opportunities that factoring has to offer. Instead of waiting months to be paid in the healthcare industry, factoring creates an opportunity to stabilize a company’s cash flow by advancing immediate working capital.

With that said, you are already familiar with those companies dedicated to working with third-party medical receivables. It is equally important to also recognize and work with those companies who are dedicated to the vendor-side of healthcare receivables in order to solve for all variables of the cash flow equation.

Take heed when choosing a factor for each deal; do your research, and put yourself in your healthcare clients’ shoes. One of the main things that you learned during your consultant training is that deals involving medical receivables should be sent to a particular factor that specializes in that area. The same holds true for healthcare vendor-receivables. Yes, an all-purpose factor will be able to handle the vendor receivables just as professionally as a factor who deals only with healthcare vendor receivables. Still, one holds an important advantage over the other. The factor who is dedicated to serving the healthcare vendor industry has an extended expertise in the field. The vendor factor understands the unique operating procedures, specific vocabulary and trends that are associated with the healthcare vendor industry, so they are better able to serve those businesses.

Think of it this way: If you were having heart pains, who would you rather visit’your primary care physician or a cardiologist? Both have the capability to diagnose the cause of the heart pains, but the cardiologist works with hearts everyday, while the PCP may only occasionally encounter a heart problem. The choice is yours, as it is with your clients when picking a factor. And more often than not, you and your clients would choose the person or company who knows the most about your particular dilemma.

So there you have it. In the past three articles, I have gone into tremendous detail about the healthcare financial crisis and shown you where cash flow consultants fit into the equation. You learned the causes of the cash flow problem in the healthcare industry and how you can be part of the solution. Remember that there are factors out there who offer a valuable service to the vendor-side of the industry, and teaming your clients up with those factoring companies helps three-fold. First, the vendors can continue to serve healthcare providers without having to wait to be paid. Second, healthcare institutions can continue to provide the best quality medical attention and offer premier facilities to their patients. And last, but certainly not least, you can increase your own cash flow by matching your healthcare clients with a factor who also understands the healthcare industry and who will get the deals done.

NOTE: The Cash Poor Series was initially written as a three-part series written by Nikki Flores for the American Cash Flow Journal, which is no longer in publication. It was also published on PRN Funding’s web site.

Healthcare Financial Crisis: Take Part in Solving the Financial Equation

Friday, June 3rd, 2011

Part Two

Earlier this week, I gave an overview of the healthcare financial crisis that currently exists in our country. And I challenged you, as cash flow consultants, to take a part in solving the cash flow equation by offering your financial expertise to those vendors who sell to healthcare institutions. Allow me to elaborate.

There is an underlying irony in our country’s healthcare system. Fourteen percent (or $1.2 trillion) of the United States’ federal budget is spent on healthcare every year, which is more than any other country, yet one-third of our nation’s healthcare providers operate in the red, and another one-third are barely able to stay afloat. But how can that be? An aging Baby Boom population, a steady rise in uninsured Americans and inadequacies in the payment systems of government aid programs all add elements to the healthcare financial crisis equation.

The Baby-Boomers are getting older and living longer’So much so that by 2050, it is projected that one in five Americans will be included in the oldest adult segment, according to the U.S. Census Bureau. This surge of older adults is expected to cause a substantial flux in our country’s healthcare system because of the increased need for services that treat and manage chronic and acute health conditions for the elderly.

In addition to the aging population, rising health insurance premiums and a significant increase in federal healthcare coverage add more twists to the cash flow crisis. For example, 45 million Americans went uninsured last year, and almost half (20.6 million) were full-time employees whose employers could not afford to provide them with health insurance due to costly premiums. Now keep in mind that hospital emergency rooms are required to help any patient who walks through their doors, whether or not he/she has health insurance. So what happens when they provide medical care to a patient who is uninsured? The hospitals are left to foot the bill on their own.

Furthermore, a majority of unemployed Americans living in poverty, as well as the retired elderly adult population, depend solely on federal healthcare programs, such as Medicaid and Medicare, to pay their medical bills. Both programs appear to solve the cash flow problem because they pay for medical procedures that these people would otherwise be unable to pay for. But in reality, it’s not so simple.

Both federally funded programs pay slowly and more often than not, the cost of the actual medical care is higher than these programs are willing to reimburse. In the meantime, hospitals and nursing homes are forced to take the financial hit. Thus, the never-ending cycle begins. Healthcare institutions have to wait to be paid for their services, so they are unable to pay their bills on time. In other words, healthcare providers are not the only ones who suffer in this funding crisis’their vendors suffer too.

Welcome to the healthcare financial crisis equation. As cash flow consultants, you have the power to help this cash flow problem from the ground up. By reaching out to those vendors who are selling to healthcare institutions, understanding their positions and pairing them with a funding source, you have the ability to impact the healthcare funding crisis in a positive and revitalizing way. The trick is finding the right kind of financial assistance for these vendors.

Many of you may be asking the obvious. Why couldn’t the vendor just take out a small business loan from a bank? However, conventional borrowing increases business expenses because it creates debt that must be paid back, and it normally requires additional collateral that many of these healthcare vendors do not have. Not to mention that some companies, especially smaller ones, are turned down by banks because of tight borrowing regulations and restrictions. In addition, equity financing is generally harder to find than debt financing and once found, it takes longer to arrange, which does not address the company’s original need for working capital now.

However, another financial route works especially well for these healthcare vendors’ accounts receivable factoring. A viable option for companies in the early stages of business development and /or during rapid growth, factoring is a financial solution that gives companies immediate cash to manage operations more efficiently. Through the sale of its accounts receivable to a factor, a company can maintain their present obligations, such as payroll and taxes, without having to wait months to be paid.

Now that you have taken a moment to investigate the healthcare industry’s financial crisis, it’s easy to see how time plays such a crucial role in the payment process. It’s not a question of whether or not healthcare providers will pay their vendors, it’s a question of when they will be able to pay their vendors. Because they are paid slowly and inadequately, many hospitals and nursing homes provide their vendors terms of net-60 or longer, which means that they won’t consider paying an invoice until it is at least two months old. In other words, healthcare institutions do pay their bills, but they pay slowly. So if healthcare vendors would factor their receivables, they could stabilize their cash flow and continue servicing their clients, without having to worry about when they would get paid.

On that note, it is important to understand that there are two ways that a factoring company can handle healthcare receivables. One way introduces a third party (i.e. Medicaid, Medicare or private insurance company) to the invoicing process. For example, when you go to the doctor for a cold and you have health insurance, your doctor’s office sends a claim to your insurance provider after you have paid your portion (or co-pay), which bills your insurance company for the remainder of the bill. Because there are three parties involved (you, your doctor’s office and your insurance provider), the factoring deal is referred to as third-party medical receivables, which many of you are already very familiar with.

On the other hand, there is a vendor side to healthcare receivables, which oftentimes goes unnoticed in the factoring industry. A good way for any business to save money is to outsource work that the company does not specialize in. This works especially well for healthcare providers. For example, a nursing home could hire another company to cook all of their food and run their cafeteria services or a hospital could hire a temporary nurse staffing agency to meet it speak demand periods. Whatever the case, the bottom line is that each of these vendors end up waiting much longer to be paid than it would take for a traditional commercial transaction. Thus, these kinds of vendors could and should take advantage of all the benefits that factoring has to offer. So now that we have narrowed down the financing field to factoring, the next step is finding the right factor for the job. What are the pros and cons between choosing a big factor or small one, a general factor or a specialty one? Please stay turned for the next factoring blog post, which will go into further detail about these differences and more, and find out which type of factor would make the best fit for your healthcare clients.

NOTE: The Cash Poor Series was initially written as a three-part series written by Nikki Flores for the American Cash Flow Journal, which is no longer in publication. It was also published on PRN Funding’s web site.