Most factoring firms can establish a new account in as little as three business days. But what happens after that? When nurse staffing agencies choose to work with a factor that understands their business model, the daily funding procedures are just as easy as the approval process.
The day-to-day nurse staffing payroll funding process works like this:
Staff Nurses & Send out Invoices
The beginning of the nurse staffing payroll funding process is not so different from your normal staffing procedures. You staff your nurses at a medical facility, collect your employees’ timesheets, and issue invoices to the facility. The only change at this stage of the process is the remittance address. Most nurse staffing payroll funding firms ask that their remittance information be printed directly on the invoice.
Send Information to the Funder
After you send your invoices and timesheets to your customer, those invoices are officially eligible for sale. So the next step is to send a copy of those invoices and their corresponding timesheets to your payroll funder. Typically, nurse staffing agencies send these items to a payroll funder via fax or email.
Credit Check on New Customers
Whenever you have a new customer (account debtor), and you want to sell those invoices, the nurse staffing payroll funding company will look into that facility’s creditworthiness, and set an appropriate credit limit based on its findings.
If you submit an invoice for a pre-approved customer, the nurse staffing payroll funding company will verify with that customer that the nurses listed on the invoices worked at the specified times. This is usually accomplished with a quick call to the facility’s DON or nurse scheduler.
Funds are Advanced
Once the payroll funding company has verified the invoices, it’s time to move money. In this day and age, funds are usually transferred electronically via ACH (overnight deposit) or a same-day wire. The choice is us to you.
Payments are Received; Reserve is Released
After the nurse staffing payroll funding company receives payment for the invoices it factored, it releases the reserve back to you. The reserve is the amount that was not initially advanced minus the factoring fees. (NOTE: If you use a $1000 invoice as an example, the nurse staffing payroll funding company advanced you $800, and it collected $1000. The reserve is $200 minus the factoring fees.)
When paired with the right factoring firm, the ongoing nurse staffing payroll funding process is virtually seamless. Agency owners can use this type of financing to improve their cash flow and allow them to meet timely financial obligations like weekly payroll, quarterly payroll taxes and vendor bills.