When running a medical staffing agency, you are in the business of providing qualified employees to medical facilities. As part of this business, you have to build these medical facilities and receive payments for the services that your employees provide. In many cases, it takes 60 or 90 days for the medical facilities to pay the bills that you are owed. If you don't have the best cash flow, it can be difficult to make ends meet until your medical staffing invoices are paid. If this sounds like your situation, medical staffing factoring could be a lifesaver.
Medical staffing factoring is a process in which you get cash advances based on the invoices that you have two legitimate medical facilities. Then when the medical facilities pay you, you pay back the cash advance to the factoring company. This provides you with the opportunity to turn your outstanding accounts receivables into cash as soon as possible. When you don't have much cash flow coming in, this is a legitimate way to turn the tables in your favor.
With medical staffing factoring, you have to work with a factoring company to get access to the money you need. You will fill out application for factoring with the company. You will then be asked to provide information about the invoices that you want to get cash for. The factoring company may need to evaluate the invoices that you want to factor before deciding to move forward with the process. If you are dealing with a legitimate medical facility, the factoring company will typically approve the deal.
Once the factoring company looks at the invoices and decides that they are high-quality, they will move forward with the cash advance. In most cases, the factoring company will provide you with a percentage of the invoice up front. Then when the invoice is paid by the medical facility, the factoring company gives you the rest of the payment while keeping a little bit of the payment as a fee for the service.
If you are considering using medical staffing factoring, you have to look at your own situation and determine if it is best. If you're struggling to get by and you need better cash flow, this is a legitimate way to accomplish this goal. You'll need to review the terms of the factoring agreement with the provider to make sure that they are agreeable. As long as you are not paying too much for the money that you are being advanced, it can be a worthy strategy. Instead of worrying about your accounts, simply fill out the application with a medical staffing factoring company and move forward with the deal.