Factoring Nurse Staffing Agencies
Nurses are turning increasingly to staffing agencies to find employment. Many hospitals and other healthcare facilities go through cycles of hiring personnel and then laying them off when budget cuts come down at the end of the fiscal year. This leaves many nurses unemployed while there is an increasing need for their talent.
One of the challenges for staffing agencies that handle nursing positions is having the capacity to add personnel when demand increases. If cash flows are tight, adding additional employees can be near impossible. Factoring is a viable solution for freeing up that cash and expanding business.
How Can Factoring Help Nurse Staffing Agencies?
Nursing is not a 9-5 job in many cases. Hospitals and other facilities need qualified staffing 24/7. If one of these facilities needs help, it is important for a staffing agency to have employees available to take on the needed responsibilities at a moment's notice. …show more content…
This is where factoring comes into play. It allows you to free up the cash you have trapped in unpaid invoices to be used in whatever way you need.
Factoring is fairly simple to understand. If you have invoices which normally wait 30 to 60 days for payment, you may be a good candidate for factoring. The factor will review the invoices you have available and determine if your clients are creditworthy. If the factor determines the invoices and customers are good, the agency will forward between 70 and 90 percent of the invoices' value to you. Once the clients pay those invoices, the factor will forward the rest of the payment amount to you, minus a small fee for its services.
This financial arrangement allows you to free up your cash flows and offers you the opportunity to hire additional employees, recruit new clients, or expand in any way you
One of the challenges for staffing agencies that handle nursing positions is having the capacity to add personnel when demand increases. If cash flows are tight, adding additional employees can be near impossible. Factoring is a viable solution for freeing up that cash and expanding business.
How Can Factoring Help Nurse Staffing Agencies?
Nursing is not a 9-5 job in many cases. Hospitals and other facilities need qualified staffing 24/7. If one of these facilities needs help, it is important for a staffing agency to have employees available to take on the needed responsibilities at a moment's notice. …show more content…
This is where factoring comes into play. It allows you to free up the cash you have trapped in unpaid invoices to be used in whatever way you need.
Factoring is fairly simple to understand. If you have invoices which normally wait 30 to 60 days for payment, you may be a good candidate for factoring. The factor will review the invoices you have available and determine if your clients are creditworthy. If the factor determines the invoices and customers are good, the agency will forward between 70 and 90 percent of the invoices' value to you. Once the clients pay those invoices, the factor will forward the rest of the payment amount to you, minus a small fee for its services.
This financial arrangement allows you to free up your cash flows and offers you the opportunity to hire additional employees, recruit new clients, or expand in any way you