How do Nurse Staffing Agencies get Funding?
Even for the best-run nurse staffing agencies, payroll, rapid growth, and similar challenges are complicated issues. Clearly, running a nurse staffing company is no easy task. Try navigating through the above financial pressures with the complexity of scheduling, federal and state staffing requirements and working with staffing models such as patient acuity, budget-based, or nurse-patient ratio. Having readily available working capital on hand helps turn these challenges into a profitable venture.
One of the best ways to achieve the financial strength nurse staffing agencies demand is through invoice factoring. Factoring is a fast, safe and affordable way for the nursing staffing industry to meet their financial needs. Factoring loans give nurse staffing agencies the leverage to get payments from their clients immediately vs waiting 30 to 60 days or even more. Paragon Financial’s non-recourse invoice factoring programs provide AR management services along with comprehensive credit protection. This all means the life of running a nurse staffing company is a bit less complicated.
What Kind of Staff Nursing Companies Can be Funded?
Invoice factoring and payroll financing are flexible funding programs that are successful in a wide range of nurse staffing segments. This includes, but is not limited to:
- General Nurse Practitioners (NP) and Family Nurse Practitioners (FNP)
- Travel or Traveling Nurses
- Registered Nurses (RN) and Licensed Practical Nurses (LPN)
- Home Care Registered Nurses
- Locum Tenens Physicians
- Private Duty Nurses
- Temporary Nurses
- Certified Nurse Anesthetists (CRNA)
- Clinical Nurse Specialists (CNS)
- Pediatric Nurses
- School Nurses
- Government and Public Agency Nurses
What is an Example of Factoring Loan for a Nurse Staffing Agency?
Your nursing staffing agency has an outstanding invoice for $100,000 from an excellent quality customer. The only problem with your customer is their payment term of 45 days. You are a staffing service based company with good, creditworthy customer. This will earn you a 90% advance rate. Most of your expenses are payroll and it is important make sure you have working capital consistently flowing in to pay your temp nurses and payroll taxes, suta, futa and workman’s comp premiums.
Once the $100,000 invoice is verified, your nurse staffing company receives a same-day wire transfer of $90,000 into their bank from the factoring company.
You are charged a fee for the factor which varies depending on the length of time your customer takes to pay. For example, your fee is 1.5% for first 30 days an invoice is outstanding. In this case, your fee would be $1500. Your customer pays in full within 30 days and you are wired the remaining balance minus the $1500 fee. In this scenario, you received $98,500 out of the $100,000 original invoice and got 90% of it up front for a $1500 fee. There are other minimal fees such as wire transfers.
Why use Paragon Financial for your Nurse Staffing Funding Needs?
Paragon Financial is a factoring company with over two decades of experience funding the healthcare, nursing and staffing industries. We understand how to work with your specific needs, bringing nurse staffing agencies the cash flow they deserve to smoothly grow and manage their companies. Nurse staffing companies receive high advance rates along with the extra protection and benefits of non-recourse invoice factoring, accounts receivable management and credit protection.