The Perfect Invoice Factoring Deal

Rather than elaborate on one specific deal that worked out for the better, this article will expand on three surefire attributes all involved parties (brokers, factors and prospects) need to have in order for a factoring relationship to run smoothly from beginning to end. All it takes is a little preparation, good communication and some organization.


Before a factoring broker even thinks about referring a prospect to a funding source, it’s important for him/her to do some behind-the-scenes prep work ahead of time. Examples of this prep-work include:

  • Knowing all of the pertinent details about each of your funding sources(i.e. Monthly minimums/maximums, industries they serve, general fee structures, length of time it takes to close a deal, how they prefer to receive referrals, etc.)
  • Educating yourself as much as you can about the prospect’s company and/or industry (i.e. Do they provide services or products?, Who are their customers? How much do they bill?, Why do they want to factor? How long have they been in business? Do they have any liens?, etc).
  • Gathering pertinent information from the prospect to help the factor qualify the lead appropriately (i.e. Current invoice aging report, Articles of Incorporation or Articles of Organization, Contact information for company principles, etc.)

Factoring firms also need to be adequately prepared to receive a lead from a broker. This can easily be accomplished by having a structured referral program already in place so brokers know upfront what the factor expects from them. In addition, factoring firms should have dedicated personnel available to help brokers through the process of submitting a prospect.

The best prospects to work with are those who are prepared to answer questions pertaining to their business and who have pertinent business documents on-hand and ready to distribute to the broker and/or factor. For example, most companies should be able to easily access their most recent tax returns, provide financing reports (i.e. invoice aging, profit/loss statement, balance statement, etc.), and supply copies of company registrations.

Click here to keep reading More Tips On Finding the Perfect Invoice Factoring Deal.

Home Health Care Factoring – Alternative Financing Solution for Agencies

2011 will go down in history as the year the big banks stopped lending to small businesses. On the other hand, 2011 will also be remembered as the year alternative lenders came to the forefront of the small business financing industry. Specifically, Credit Unions, Community Development Financial Institutions (CDFIs), Micro Lenders and Accounts Receivable Factoring Firms all said YES to the majority of their small business financing applications while most larger banks repeatedly said NO.

Although a home health care agency owner could be approved for financing by any of the alternative lenders listed above, the best alternative financing option for them is to work with a home health care factor, and here’s why:

Home Health Care Factoring Creates Positive Cash Flow
Some Medicaid waiver programs can take up to a month to reimburse a home health care agency for its pre-approved non-medical in-home services. This lag in payments makes it difficult for new or growing home health care agencies to be able to meet payroll and other financial obligations. However, when home health agency owners sell their Medicaid receivables to a home health care funding firm, funds can be directly deposited into their bank account within hours. Instead of waiting weeks or months, factoring your home health care business gives business owners immediate access to cash…

Click here to continue reading more reasons why home health care agencies should use a factoring.

Home Care Invoice Funding – Is it Right For Your Private Duty Agency?

There are many reasons why a private duty agency would try to qualify for home care funding. However, the most common motive is that they cannot afford to wait weeks or months to be reimbursed by Medicaid or another governmental agency.

Without a constant inflow of cash, home care agencies run the risk of not having enough capital to meet payroll, pay vendors or grow their business. Fortunately, home care financing can provide the necessary capital to help struggling private duty agencies maintain a healthy cash flow.

Click here to access key questions that will help you decide if home care invoice funding is right for your private duty agency.

PRN Funding to Give Away Amazon Gift Card at Private Duty Home Care Leadership Summit

Las Vegas, NV-PRN Funding, LLC is excited to speak with private duty home care agency owners about factoring at the 7th Annual Private Duty Home Care Leadership Summit & Exposition at the Bellagio in Las Vegas.

Marketing Manager, Nikki Flores will be in booth #303 January 23-25 speaking with private duty home care business owners about how they can turn their receivables into cash immediately through private duty home care invoice factoring.

In addition to learning about invoice funding options, all attendees are invited to stop by booth #303 and enter our drawing to win a $100 Amazon gift card.

Click here to read the official press release: Private Duty Home Care Association Invites Factoring Firm as a First-Time Exhibitor.

Factoring Brokers Should Know Their Funders

Cash flow consultants know that factoring is a great way to ease their clients’ cash flow tensions. However, pairing a prospect with the wrong factoring company could be even more detrimental to your client’s cash flow. Not to mention, sending a prospect to the wrong funder could also damage the relationships you have with your client and the funder. In order to avoid such a catastrophe, it is extremely important for consultants and brokers to know how each of their funding partners’ factoring programs work so they can match their clients with the most appropriate one. The best way to get to know your funders is to ask the following four questions…

One: What is your focus?
In general, factors can be divided into three different operating categories. First, there are large factors that operate nationally and are able to fund clients across numerous different industries. On the other hand, there are some factors that focus their operations in one specific geographic region. These smaller local factors have a home field advantage because their clients like knowing that their factor is literally right around the corner. The last category is comprised of factors that concentrate their funding in one specific niche. (For example, PRN Funding only factors invoices for medical vendors.) These factors’ clients appreciate the fact that their funder understands their specific industry.

Click here to read the rest of the Questions Factoring Brokers Should Ask to Get to Know Their Funders.

PRN Funding’s 2012 Trade Show Schedule

Curious about PRN Funding’s healthcare factoring services?

Check out our 2012 Trade Show schedule. We’d love to see you if you’re planning on attending any of the shows below:

Trade Show Location Dates Booth #
NAHC Leadership Summit Las Vegas, NV Jan 23-25 303
ACE12 Indianapolis, IN Aug 8-11 108
NPDA Orlando, FL Sept 12-14 TBD
Decision Health Las Vegas, NV Nov 2-4 TBD

2011 – Year of Alternative Financing

Did you happen to see the story on entitled: Small Business Story of the Year: The Rise of Alternative Lending?

It was an excellent post about how bank lending declined in 2011, but alternative financing lenders such as Credit Unions, Community Development Financial Institutions (CDFIs), Micro Lenders and Accounts Receivable Factoring Firms increased their lending capabilities for small business owners.

Specifically, the article stated that large banks rejected small business loan applications 90 percent of the time in 2011, whereas smaller financing institutions and alternative lenders approved nearly half of all the funding applications. Moreover, in November alone, alternative lenders approved 62 percent of small business funding requests.

Home Health Care Reform

Changes in healthcare are taking place all throughout the country, including the home. According to Healthcare Finance News, The Alliance for Quality Home Care (AQHC) recently outlined its new policy on post-acute healthcare reform. Post-acute healthcare refers to home care that people receive when they are not sick enough to be in the hospital, but need medical attention and help with daily activities. The AQHC outlined three main objectives of their plan:

Patient Needs First: The needs of patients must be the driver of reform. The reform is intended to integrate systems and put all people involved in home care on the same page with aligned incentives, rather than mixed incentives, in order to match each patient individually with their needs.

Payment Tied to Quality: Performance metrics must be developed that better apply across all care sectors, and also keep the “big picture” of total care in mind to see how each caregiver is performing in context. High performers get compensated for their work, which will encourage only the best care.

Adequate Payment: While not easy to accomplish in times of budget cuts, with the proper structure in place adequate compensation can be given. This requires looking at situations that providers face and making cuts accordingly, not across the board.

For the full article, see Nursing Home Alliance Offers Post-Acute System Reform