| The notion of selling allied health receivables to a | | | | the allied health company submits a schedule of |
| factoring firm may sound like a difficult concept to | | | | accounts receivable for purchase to the factoring |
| understand, but in reality, nothing could be further | | | | firm. In addition to the invoice, this schedule also |
| from the truth. In fact, there are many | | | | includes any supporting documentation (i.e. signed |
| companies (i.e. respiratory therapist staffing | | | | time-sheets). |
| agencies, radiology tech staffing firms, and | | | | 6. The invoice funding company will contact the |
| physical therapist staffing agencies) that can | | | | staffing agency's customers from time to time to |
| greatly benefit from all that allied health staffing | | | | verify that they are actively using temporary |
| factoring has to offer. Namely, growing their | | | | employees from the agency. Upon verification of |
| companies without having to worry about how | | | | the invoices, the factor will electronically advance |
| long it will take for their customers to pay them. | | | | funds within hours. |
| In order to help clear up any healthcare factoring | | | | 7. Per the remittance information included on the |
| misconceptions, this article will explain the allied | | | | factored invoice, the medical facility sends |
| health staffing factoring process step-by-step... | | | | payments directly to the factoring firm's lock box. |
| 1. The customer (i.e. hospital, medical clinic, nursing | | | | 8. Upon receipt of the payment, the factor remits |
| home, etc.) approaches an allied health staffing | | | | the difference (reserve) between the collected |
| company to fill an open shift. | | | | amount and the advance to the agency, less the |
| 2. If it's a new customer, the factoring firm | | | | discount fee. |
| performs a credit check on the medical facility | | | | Selling invoices to a factor improves the agency's |
| and if approved, determines a line of credit for | | | | cash flow, allowing business owners to meet |
| that customer. | | | | payroll, taxes and other monetary obligations in a |
| 3. The staffing firm provides the medical facility | | | | timely manner. Thanks to this article, business |
| with a temporary employee to fill the shift. | | | | owners are able to easily familiarize themselves |
| 4. The agency issues an invoice to the medical | | | | with the factoring process. The next step in |
| facility for the shift, making sure to include the | | | | improving their cash flow is to start researching |
| factoring firm's remittance information directly on | | | | which allied health staffing factoring firm will best |
| the invoice. | | | | meet their company's cash flow needs. |
| 5. At any time after the invoice has been issued, | | | | |