Nurse Staffing Account Receivable Factoring – How to Get Started

Factoring firms receive all sorts of questions from business owners in regards to their services. From the cost of factoring to the length of time one is required to remain in a factoring relationship, we’ve heard it all. However in this article, I’d like to answer one of the most frequently asked questions about nurse staffing account receivable factoring: What is needed to complete an initial factoring transaction?

  1. The first thing a nurse staffing account receivable factor does prior to an initial funding is check into the creditworthiness of the agency’s customers. Credit approval for a first-time debtor (customer) is simple. The agency supplies the factor with the name and address of the new debtor, and then the factor will run credit on that debtor. Once approved, the agency can present invoices for sale.
  2. The business owner sends out the original invoices to their debtors as normal, and then sends a copy of those invoices along with proof of performance (signed time sheets) to the factoring company. This can usually be accomplished via fax or email. It’s important to note that the nurse staffing account receivable factoring company will only purchase invoices for shifts that have already been worked.
  3. The account receivable factor will then verify that the invoices are valid by speaking with a nurse scheduler or Director of Nursing (DON) at the facilities where the shifts were worked just to confirm that the nurses worked the shifts listed on the invoices.

Click here to read about the rest of the Steps to Complete an Initial Nurse Staffing Account Receivable Factoring Transaction.

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