As a home care agency grows, so does its financial demands. More clients and outstanding invoices mean more cash tied up in accounts receivable, while payroll responsibilities increase and deadlines remain strict.
For Mike Gold, Executive Director and Owner of Age in Place Home Care, that reality became clear as his agency expanded. As waiting for customer payments became an obstacle to growth, he turned to home care factoring with PRN Funding.
What began as a way to improve cash flow evolved into a long-term partnership that not only supported growth but also gave him confidence that payroll would be protected when the unexpected happens.
Growing Agency Faces Cash Flow Challenges
When Age in Place Home Care was just getting started, delayed payments were manageable.
“We started the business focused primarily on private pay,” Mike said. “At the time, with the caregivers that we had and the clients that we had, if there was any delay in payments, I could go to my own checkbook and write a check and cover payroll.”
As the agency grew, that approach was no longer sustainable. Larger payrolls and increasing client volume meant waiting weeks for payments could create unnecessary financial pressure.
“We got to the point where we were continuing to grow, and I felt that we needed to get our money quicker,” Mike said.
Healthcare Factoring Provides Cash Flow Solution
Mike researched funding options and chose to partner with PRN Funding. Through health care invoice factoring, PRN Funding provides immediate cash advances on unpaid invoices and then collects payment directly from Age in Place Home Care’s clients.
Rather than waiting for customer payments to arrive weeks later, PRN Funding provided capital they could use immediately.
“During our growth phase, that was the key,” Mike said. “We were getting our money quick, and we were able to deploy it into opening new operations.”
Having reliable access to cash helped remove one of the biggest barriers to expansion and allowed the agency to pursue growth opportunities with greater confidence.
Healthcare Factoring Secures Payroll During Disruptions
PRN Funding quickly proved its value went beyond supporting the agency’s growth when an industry-wide disruption created uncertainty for many healthcare providers.
One of Age in Place Home Care’s managed care organizations (MCO), which accounted for approximately 15% of the agency’s revenue, was suddenly unable to process payments because of a widespread cyberattack.
The MCO wasn’t sure how long they would be down. Mike was concerned that if the issue went on too long, they would not be able to make payroll.
He reached out to PRN Funding to explain the situation. Age in Place wasn’t the only PRN Funding client impacted. As the scope of the disruption became clear across the healthcare industry, PRN Funding worked through the issue and ultimately reassured Mike that Age in Place Home Care would not miss payroll.
“That gave me peace of mind, and I was actually fine from there on,” Mike said. “I just continued to go about our business and do what we did.”
A Healthcare Factoring Partner for Growth and Peace of Mind
Now that Age in Place is larger and more established, Mike has considered whether he still needs accounts receivable factoring. While he believes they are big enough to manage their cash flow, experience has shown him the value of having a trusted financial partner ready to help when the unexpected happens.
For Mike, the relationship had evolved beyond improving cash flow. It became part of his agency’s broader strategy for managing risk and maintaining operational stability.
“I just felt comfortable working with you guys. I wanted to have that backstop because I felt confident in your abilities to help us,” Mike said.
Be Prepared Before You Need It
Mike’s experience reinforced an important lesson for every home care agency owner: unexpected disruptions can happen at any time, and they often have nothing to do with how well an agency is run.
Whether it’s a cyberattack, reimbursement delays, payer issues, regulatory changes, or another unforeseen event, cash flow can be interrupted even when caregivers continue providing care and payroll obligations remain the same.
“You need to have something because there are things that can come up that you won’t be able to control,” Mike said
Whether your agency is growing, managing reimbursement delays, or preparing for the unexpected, PRN Funding provides fast, flexible accounts receivable funding backed by personal service and healthcare industry expertise. Contact PRN Funding today to learn about healthcare factoring and how we can support your cash flow and prepare your agency for whatever comes your way.
