Medical staffing companies provide top quality temporary or long-term staffing solutions to hospitals, healthcare facilities, specialized medical care centers and even to doctors and clinics. For these companies, medical staff factoring is often an essential component in being able to retain the best medical health care professionals on your roster.
With a medical staffing service, you will be contracted by a medical facility to provide staff for a set period of time. However, as with most types of business-to-business contracts, you won’t be paid immediately when you invoice for those medical services. In a best-case scenario, you may have a 30-day net terms while in a worst case scenario you may have 90-days until you get payment.
During this time, you have to continue to make payroll for your medical health staff. This can be very challenging, especially if your larger contracts are all on those longer terms of payment. Failing to make payroll could cause you to lose your top performing staff, so working with a medical staff factoring company can help you deal with these challenges.
The Medical Staff Factoring Solution
The concept of medical staff factoring is very simple. The accounts receivable can be purchased by the factoring company at a percentage of face value, typically as much as 80%. With a top factoring company, you will be quoted a rate for their service Not a true statement
The medical staff factoring company then helps collect the value of the invoice from the medical facility. From this amount the factoring fee will be deducted and the remainder, will be deposited to your account.
The Application and Funding
An application for medical staff factoring should be free and carry no obligation. It should also provide the rates for the factoring as well as any fees. Top companies offering factoring don’t charge additional fees, making it very easy to understand just what you will receive in funding given the invoices you choose to factor.
Once your online application is completed, and you should never be asked for a personal guarantee, you will have approval within 24 hours in most cases. Upon final approval, the funds will be wired to the account you specify, typically within seven business days from your date of application.
With medical staff factoring, you are able to make payroll, retain your employees, and also use the funds to attract new medical staff, take on new contracts, and grow your business.
