Nurse Staffing Agency Financing

Posted by on September 20, 2016 in Uncategorized | Comments Off on Nurse Staffing Agency Financing

Nurse Staffing Agency Financing

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 from 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. Funding for the Nurse Staffing Industry has never been easier. Apply for fast, secure funding now or contact our National Sales Manager, Chris Curtin via email or 888-400-5931 ext 1. Money When Your Business Needs It...

Read More

How Factoring Companies Help Staffing Agencies

Posted by on June 27, 2016 in Uncategorized | Comments Off on How Factoring Companies Help Staffing Agencies

It is not uncommon for staffing agencies to experience working capital challenges, especially with weekly payroll. Invoices can take up to 90 days to be paid, all the while you still have to pay your staffing payroll on time. Whether you specialize in short and long term temp work, or professional recruiting, there are going to be times when the amount of cash coming in is not able to cover what has to go out. These issues are relevant no matter what industry your staffing firm represents from janitorial to nursing, to security guards to teachers. What Mistakes Do Staffing Agencies Make to Gain Working Capital? It’s understandable to grow frustrated about the lack of cash and payroll funding for your temporary agency, especially when you are gazing at a stack of unpaid invoices. This could lead to you instilling practices that will eventually stunt your agency’s growth: Adding excessive late fees to any client who pays you after 30 days Making late payments on your operating costs Not meeting payroll and paying your employees on time Being overly aggressive in your collection techniques Only providing staffing for clients who promise to pay invoices within 30 days These strategies might be useful for increasing cash flow short-term but is not a good way to keep clients. Over time, they will look elsewhere for their staffing needs, and your staffing talent will find a firm that pays on time. Not paying your overhead costs on time will affect your credit, and the ability to get financing in the future. What solutions are there to meet your financial obligations? How About a Business Loan for Working Capital? One solution is to ask a bank or other lender for a working capital loan. This option takes up a good deal of your time, and you will have to provide the bank with stacks of paperwork. Your business credit is scrutinized, and you could be asked to present a business plan for the future of your staffing agency. Most likely, your company will be not be approved after going through a circus act to even be reviewed by the bank. Even if you make it through the application process and get approved for the loan, you have to commit to making monthly payments to absolve the debt. This only exacerbates the issue of having to wait 60 days to get your hands on the cash from an unpaid invoice. A straight business loan is useful in some situations, but not helpful for the structure of a temp agency. How Do Factoring Companies Help Staffing Agencies? The complicated structure of staffing firms makes working with a factoring company ideal. They are payroll funding experts and are used to working in complex funding situations. Your largest assets lie in your staffing talent, and the invoices that they have generated. Factoring companies are able to leverage these unpaid invoices as a type of collateral for securing the financing your agency needs to meet its weekly financial obligations. A Factor gives you cash for unpaid invoices upfront. This funding type is not a loan so you will not be subject to any form of interest on the money advanced to you. Non-recourse invoice factoring gives you the flexibility to get the cash you need immediately in the way you need it. You can choose which invoices to hand over to the lender, and on which you can wait to receive payment. The invoices signed over become the responsibility of the factoring company for management and collection. Factoring companies have deep experience working with a soft-touch and representing the...

Read More

05/31/16 – Paragon Financial Announces Funding Program for Start-Up Staffing Companies

Posted by on May 31, 2016 in | Comments Off on 05/31/16 – Paragon Financial Announces Funding Program for Start-Up Staffing Companies

MIAMI, FL- Paragon Financial Group, a 22-year old non-recourse invoice factoring company, announces a new funding program for start-up staffing companies. The program provides non-recourse, credit protected working capital for start-up staffing agencies dealing with growing payrolls in the fast paced staffing industry. According to Staffing Industry Analysis, the US staffing market is projected to grow 6% in both 2016 and 2017 to nearly $150 billion with the strongest areas in the healthcare and education segments. Chris Curtin, Paragon Financial’s National Sales Manager, said, “With 22 years of staffing funding experience, we have a deep understanding of where individual staffing companies are in their growth curve and where the industry is headed. Paragon helps start-up staffing clients with working capital solutions through periods of change allowing them to focus on building their business rather than worrying about the problems of staffing payroll issues caused by limited or sporadic cash flow.” Curtin goes on to say, “We have also created a guide on How to Start your Own Staffing Agency that we hope helps budding staffing entrepreneurs on their journey of business ownership.” According to David Hale of Staffing Industry Analysis, the on-demand economy is pushing rapid development of new software tools for HR. Successful staffing companies will partner with new, agile technology providers, implementing cloud-based SaaS solutions. These changes require investment and Paragon Financial’s start-up staffing program helps fund these initiatives. About Paragon Financial Group For over two decades, US companies across all industries have selected Paragon Financial to meet their working capital needs. Non-Recourse Accounts Receivable Facilities are available up to $3,000,000 USD. From government contractors to distribution companies, from staffing agencies to manufacturers; entrepreneurs have successfully grown their company with Paragon Financial’s Non-Recourse Invoice Factoring, Accounts Receivable Management, Credit Protection and Purchase Order Financing Programs. For fast funding now, please call 888-271-9347 ext 1 or visit our secure website...

Read More

05/26/16 – Paragon Financial Releases New Guide on How to Start a Staffing Agency

Posted by on May 26, 2016 in | Comments Off on 05/26/16 – Paragon Financial Releases New Guide on How to Start a Staffing Agency

Miami, FL – Paragon Financial Group, a 22-year-old non-recourse factoring company that specializes in funding for the US staffing industry, announces it has published a new guide: How to Start a Staffing Agency. Staffing is a historically high growth segment of the US economy. This has been reflected across many industries with staffing segments, such as healthcare, growing 20% in 2015 and projected to grow another 16% in 2016 according to Staffing Industry Analysts. Paragon Financial wrote this guide in an effort to provide entrepreneurs with an excellent base of knowledge for starting a staffing company when facing the myriad of challenges in 2016. The guide is available online or download here: A Guide on How to Start a Staffing Agency Michael Rossi, Paragon’s President, states, “From Paragon’s own early startup days, it gave us great pleasure and satisfaction to fund other entrepreneurs and their start-ups. One special area we have enjoyed working in for 22-years is helping start-up staffing companies. Thinking of their entrepreneurial zeal, we wrote this guide to help young and start-up staffing companies on their journey.” About Paragon Financial Group For over two decades, US companies across all industries have selected Paragon Financial to meet their working capital needs. Non-Recourse Accounts Receivable Facilities are available up to $3,000,000 USD. From government contractors to distribution companies, from staffing firms to manufacturers; business owners have successfully grown their companies with Paragon Financial’s Non-Recourse Invoice Factoring, Accounts Receivable Management, Credit Protection and Purchase Order Financing Programs. For fast funding now, please call 888-271-9347 ext 1 or visit our secure website...

Read More

A Guide on How to Start a Staffing Agency

Posted by on May 23, 2016 in | Comments Off on A Guide on How to Start a Staffing Agency

With the tepid growth in almost every sector of the US economy, there is one area with historically solid growth: the staffing industry. All private, public and government entities of every size experience uneven and peak workload that requires additional personnel to get the job done. In addition, many entities cannot or do not want to add to their legacy costs and liabilities with the addition of more full-time employees and look to staffing agencies to fill their workforce needs. Demand for information on how to start a staffing agency has never been higher. Solving these issues by providing high-quality temporary or full-time workers and understanding the needs of these companies creates the need for start-up staffing agencies. Paragon has created this guide on how to start a staffing company to help entrepreneurs on their journey through business ownership. What Do I Need to Get Started? Even though the staffing industry is saturated with what seems like a temporary agency for every type of industry, job and needs you could imagine, perplexingly the market for qualified and dependable people many times still goes unfulfilled. To increase your odds of being successful in this space, you need a clear game plan written out in advance. Reality and execution might vary considerably from your plans, and defining the relevant variables before you launch, is essential. Variables to Plan for when Starting a Staffing Company: What is my Background? Are you an expert in a certain niche that you can exploit to your advantage? Do you have staffing agency sales or administrative experience? Are you a great recruiter and your clients can’t get enough of the talent you find? In your self-analysis, are you being honest about your skill set and where you have holes to fill? As with starting any business, make sure you have the knowledge and resources to succeed long-term. Choose wisely based on a real-world understanding of the skills you have and the type of people you must surround yourself with to thrive in business. Create a Weekly Cash Flow Budget The more successful your new staffing agency is, the greater your need for working capital. A cash flow analysis is required based on the exact dates all your bills need to be paid and a conservative estimate of when you will get paid by your clients (typically 30-60 days after you invoice them). What are the answers and options for the staffing payroll services you will quickly need? For example, you are billing $20,000 per week (to start), and you have forecasted a 9% net profit. In addition, your large customers take an average of 42 days (6 weeks) to pay you. That means you will need 91% (100-9%) just to cover your costs. Not all the 91% or $109,200 ($18,200 x 6 weeks) is to be paid over the next 6 weeks, but a high enough percentage is going out so that you better have the working capital or make arrangements with a staffing payroll funder. This example is based on zero growth. If you quickly grow from $20,000 to $30,000 per week in sales, then your working capital needs just went up another $55,000! Since Paragon is a staffing finance company, we will talk much more about this at the end of this paper and how you can use our advance payroll funding to receive 90% each week against your billing to cover the vast majority (99%) of your costs. What is My Niche? Better returns on your investment will come from providing expert service in a narrow niche. Gross margins in staffing can run...

Read More

Back to Top

Get Started Immediately