Hiring an invoice funding company can be an unnerving process for nurse staffing agency owners because they may be worried about how their customers will view the new financing relationship. It’s a natural concern to have; however, working with a nurse staffing account receivables factoring company doesn’t have to be scary. This article gives three unique responses that agency owners can give to their customers to help explain a new account receivables factoring arrangement.
Nurse Staffing Account Receivables Factoring Response #1:
Invoice factoring is just an alternative form of financing.
As a result of these difficult economic times, traditional lenders (i.e. banks) are not extending new credit lines, and/or they are increasing interest rates. This makes it extremely difficult for a temporary nurse staffing agency to obtain traditional financing. At the same time, the demand for temporary nurses has sky-rocketed.
Savvy staffing agency owners are turning to alternative sources of financing to ensure that their businesses have a positive cash flow. In short, working with a nurse staffing account receivables factoring firm proves that the agency is fiscally sound and prepared to weather the down economy. Moreover, the factoring arrangement will allow my agency to continue to grow without hindering our ability to provide quality nurses to your facility.
Nurse Staffing Account Receivables Factoring Response #2:
Our current nurse staffing relationship will go unchanged.
Even though a factoring company will be managing my staffing agency’s receivables, the business relationship that I have with your medical facility will not change. We will continue to provide you with excellent nurses and invoice as usual. Should you need one of our supplemental nurses to fill a staffing gap, feel free to contact our agency directly, and we will find a nurse to fill the position.
The only thing that will change on your end is the remittance address, as payments should now be sent directly to the factoring company.
Nurse Staffing Account Receivables Factoring Response #3:
Think of my factoring firm is my new accounts receivable department.
From now on, the factoring company will be handling our collections. Should you need a copy of an invoice or are missing any supporting documentation (i.e. timesheets), my nurse staffing account receivables factoring firm will gladly provide you with the missing information.
Also, please note that from time to time, the factor may communicate with your facility’s accounts payable department to confirm receipt of invoices, to review skipped invoices and/or to determine when checks will be cut.
Keep these three responses in mind if you are a nurse staffing agency owner who is considering working with a nurse staffing factoring firm, and you are worried about how your clients will view the financing relationship. Open communication will help ease your mind as well as keep your clients well-informed about the benefits of using a factoring firm, so the two of you can focus more on building the business relationship and worry less about the financial aspects related to it.