New Jersey Hospitals Battle Healthcare Cash Flow Crisis

As a result of the faltering healthcare cash flow crisis, the Garden State will bid farewell to Muhlenberg Regional Medical Center later this year.  The Plainfield, NJ-hospital has lost $16.8 million last year and will lose another $18 million before closing its doors this year.

The huge growth in uninsured patients, underfunding of Medicaid and Medicare and the New Jersey’s budget cuts are just some of the reasons why Muhlenberg Medical Center has become the 36th hospital in the state to close its doors in the last 15 years.

Click here to read the entire Washington Post article: Without Funds, NJ Hospitals Face Crisis.

PRN Funding: Not a Commodity Business After All

Last week, we had the opportunity to welcome back a client who had previously left us for a “cheaper” factoring firm. In exchange for “lower rates,” this client received less industry experience, poor customer service, and numerous hidden fees and surcharges, which PRN is fundamentally opposed to. In the end, all of these things drove them right back to PRN Funding barely three months after leaving.

Some services PRN Funding offers that the other factoring firm did not:

Familiarity with the agency’s clients:

Because of PRN Funding’s specialized niche in healthcare staffing funding, we worked with this company’s debtors (clients) before, so we already knew what type of payment terms to expect and who to call when there was a question about an invoice or recent payment.

Quick turnaround time:

Because PRN Funding has been in business for nine years, we understand the complexities of the accounts receivable factoring industry. We were able to process the buyout agreement quickly and initiate a funding within days.

Superior customer service:

PRN Funding takes pride in our customer service. Every time the nurse staffing agency calls the PRN office, a live human being answers the phone and directs the nurse staffing agency owner to his personal account manager.

Dedicated staff:

The account managers at PRN Funding take the time to research and post complicated deposits directly. The well-trained and committed staff at PRN Funding work diligently to correctly post deposits in a timely basis every day.

Real time online reporting:

PRN Funding’s clients have access to the e-Factor reporting system via our web site 24/7/365. Rather than wondering what payments came in or what invoices are still open, this nurse staffing client is able to log into the reporting system and view their account in real-time.

Frustrated with the new factoring company’s lack of nurse staffing industry knowledge and inexperience in the factoring industry, this client found out the hard way that accounts receivable factoring firms are not a one size fits all.

This isn’t the first time that a client has come back to us after an unpleasant experience with another factoring company. And we have to admit that we’re really happy they came back!

2007: The Year of Small Business Firm Lending

According to a recent article in the Washington Business Journal, there was an 8 percent increase from 2006 to 2007 in the dollar volume of small business loans.

Citing a report conducted by the Small Business Administration Office of Advocacy, the article also announced that the number of outstanding small business loans under $1 million increased by 15 percent between June 2006-June 2007.  In addition, the number of small business loans in the $100,000 to $1 million range increased by 32 percent!

Click here to read the entire write up: Lending to Small Firms up in 2007.

Annual Asset-Based Lending and Factoring Survey Released

PRN Funding, LLC received the results of The Commercial Finance Association’s (CFA) Annual Asset-Based Lending and Factoring Surveys last week, and we wanted to share some of the interesting information with The Factoring Blog’s readers. (Please note that there were 100 asset-based lenders and factors who participated in the surveys.)

– The total factoring volume for all reporting CFA factoring members was $90.1 billion in 2007, a 3.1% increase over 2006.

– The Northeast (CT, DE, MA, ME, NH, NJ, NY, PA, RI, VT) represented the major regional market (43%) for factoring in terms of volume.

– The majority of the 2007 factoring volume came from the following industries: textiles, apparel and  furniture.

– Retailers accounted for most of the customer (account debtor) base in 2007.

– 83% of factoring was performed on a notification basis in 2007.

– 77% of the total 2007 factoring volume involved clients selling goods to retailers.

– Brokers (cash flow consultants) were the major source of referrals for new factoring clients.

PRN Funding Joins Cleveland Chapter of National Funding Association

Earlier this week, PRN Funding’s President, Phil Cohen, was among 15 business professionals who attended an organizational meeting of the Great Lakes Chapter of the National Funding Association (NFA).

In attendance at the meeting were financing professionals and intermediaries, including bankers, factors, consultants and attorneys, who are interested in forming the fifth chapter location of the NFA.  Currently, the NFA has chapters organized in Atlanta, Charlotte, Chicago and Nashville.

Click here to read the press release: PRN Funding Joins Cleveland Chapter of National Funding Association

Part-Time Consultant, Full-Time Success

PRN Funding’s consultant liaison, Nikki (Spiezio) Flores, recently wrote an article that appeared in the May edition of Growing Wealth Magazine.  Part-Time Consultant, Full-Time Success was written as a mini-guide for cash flow consultants who are just starting out in the industry.  In addition, the article gives tips on how to stay connected and get organized.  If you are just starting out as a cash flow consultant, we encourage you to check out the article: Part-Time Consultant, Full-Time Success.

Click here if you would like more information about PRN Funding’s broker program.

Two Free eBooks on Factoring Small Receivables

If you are an entrepreneur who wants to understand factoring or a cash flow consultant looking for more information on accounts receivable factoring, these two eBooks are sure to help you learn more.  Jeff Callender, president of Dashpoint Financial Services, Inc. and author of several factoring books and articles, is offering two free eBooks for people who are interested in learning more about the art of factoring.What is Factoring? and Factoring Vs. Other Financing are available as free downloads on Jeff Callender’s Web site.  Taken from his books, Factoring Small Receivables and Unlocking the Cash in Your Company, these eBooks can be used as an extensive introduction to accounts receivable factoring.

We invite you to check them out and let us know what you think!

Click here to learn more about Jeff Callender’s free eBook offer.

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