Common Factoring Fears
We get it: alternative funding methods can be somewhat scary. Let PRN Funding put your mind at ease–we’re here every step of the way, but know that you aren’t alone in being apprehensive. Let us answer any questions or lingering fears you may have!
Fear: I’m nervous to use factoring because I’ve never heard of it.
Reality: Factoring has been around for over 4,000 years. Many big name companies have benefited from factoring, including: 3M Corporation, Best Buy, American Express Company, Motorola Inc., CVS Corporation, and Foot Locker. What’s more, every credit-card holder uses factoring daily. When someone buys something from a store on credit, the credit card company pays the store and collects the money from the credit-card holder at a later date. Interest continues to accrue until the balance has been paid in full. Accounts receivable factoring is the same concept.
Fear: Factoring is an expensive financing option.
Reality: It’s important to consider the fact that a factoring fee is not the same thing as an annualized interest rate. For example, if a factoring firm charges 3% per month, it cannot simply be translated into 36% APR. Rather, a factoring firm’s fees stop the day an invoice is paid. You do not typically wait 12 months to receive payment on an invoice, so the fee is not nearly as large as you perceive it to be.
Fear: Factoring requires a long-term commitment.
Reality: Unlike a bank loan, most factoring companies (including PRN Funding) do not require a fixed-term financing commitment. You choose when, who, how much and how long to factor your invoices.
Fear: I will lose control over my accounts.
Reality: Factoring with PRN Funding makes it easy for you to manage your invoices. PRN Funding offers its clients access to an online reporting system 24/7/365. You have the ability to review purchased accounts and collections in real time via a secure Internet connection.
Fear: My customers will think I have cash flow problems.
Reality: Remember, lots of businesses use factoring and many healthcare facilities are already familiar with healthcare factoring. Once alerted of the change in remittance address, healthcare facilities simply view PRN Funding as your new accounts receivable department.
Fear: My customers will be bothered by frequent collection calls.
Reality: PRN Funding will initially contact your customer to verify that the invoices are valid. If there is a problem and PRN cannot successfully collect on the invoices, we will contact you to discuss the issue.
Fear: My business model is too complicated for a factoring firm to understand.
Reality: PRN Funding has been operating in the healthcare factoring industry for over a decade. We know the following industries inside and out. We provide the following services:
- Medical Staffing Factoring
- Homecare and Private Duty Factoring
- Medical Transcription Factoring
- Medical Billing Factoring
- Medical Coding Factoring