A Funding Crossroads
When John and Paula Whisenhunt launched StatIQ as a home-based business in June of 2004, they faced a dilemma familiar to many in the medical transcription business: they needed working capital to pay their contractors.
“I needed to make sure we could pay all our transcriptionists within the two weeks that they expected, even though we weren’t paid by the client yet. Generally speaking, our clients didn’t always pay within two weeks,” John Whisenhunt recalls.
The solution: medical transcription invoice financing with PRN Funding. “I looked into several factoring companies, but I was impressed with how PRN was specifically geared for medical transcription business, and with Phil’s transcription industry background,” Whisenhunt says. “The others were happy to provide service, but it just made so much more sense to go with PRN.”
Before founding PRN, Phil Cohen was a senior officer of one of the largest medical transcription companies in the country.
“A lot of the service we offer is unique because we’ve been funding medical transcription businesses since day one,” Cohen says. “Our clients don’t ever feel they have to teach my employees the finer points of their business. Our account managers all understand the industry so we never get in the way and never affect our clients’ relationships with their customers.”
The Growth Challenge
As StatIQ grew, PRN was there every step of the way, at first factoring $10,000 per month, eventually up to $200,000 per month. Part of the growth challenge for any small company is looking big in the eyes of prospective customers. PRN funding helped there too, especially with a large new client who would only pay monthly even though StatIQ billed twice a month.
“I knew PRN had my back as far as working capital. As I was talking to large potential clients I knew I could easily get the funding I needed to expand. I wasn’t worrying that if we got the account and they didn’t pay for 30 days we’d be stuck. I knew what I was going to do and I had a plan in place. It gave me the confidence I needed to take on larger clients,” Whisenhunt says.
That comfort level helped the two companies establish a solid long term relationship. Over the years other factoring companies contacted Whisenhunt about moving his business.
“I felt Phil was very knowledgeable and I could reach out and ask him anything, even if it had nothing to do with factoring. If he didn’t know the answer, he’d point me in the right direction,” Whisenhunt explains.
Monetizing the Business
Working with PRN Funding also enabled Whisenhunt to sell StatIQ. “Having that steady funding enabled us to grow to the point where we had something substantial that we could sell. Without PRN Funding, we wouldn’t have been able to make it,” he says.
Whisenhunt says the word that best describes PRN is integrity. “PRN never did anything that wasn’t above board, honest and straightforward in the entire seven years we worked together. I’m really glad we did our factoring with PRN versus another company.”