Nurse Staffing Factoring With Low Fees & High Advances
We offer nurse staffing factoring with low fees and competitive advances. Nurse staffing agencies can leverage unpaid customer receivables and unlock money to fund payroll, meet operating expenses, and grow more quickly.
What Nurse Staffing Factoring Is & How it Works
Invoice factoring is an ideal financing tool for nurse staffing agencies. Instead of waiting on payments from hospitals and clinics, which can take weeks or even months, a nurse temporary staffing business can factor invoices and receive payment in 1-2 business days.
Nurse staffing factoring, or invoice factoring, is the practice of factoring (or selling) unpaid customer invoices to a third party (called a factoring company). The factoring company releases an advance (which could be up to 90% or even 95% of the invoice amount) to the nurse temp agency, wiring it on the next business day – and sometimes even the same business day.
The factoring company earns a small fee, called a factoring fee, which could be as low as 1-5%. The fee is calculated based on the creditworthiness of the customer whose invoice is being factored rather than the nurse staffing agency since the customer is the one required to repay the debt.
In addition to the factoring advance and fee, sometimes an amount is held back as a reserve, or holdback. When the customer has sent payment for the invoice 30-60 days later (or even longer), any amount held in reserve is also returned to the nurse temp agency.
Here’s how the invoice factoring works for nurse temp agencies:
Day one: $35,000 invoice generated and factored
1-2 Days: Temp agency receives a 95% advance of $33,250
Factoring company earns 2% factoring fee
3% holdback/reserve of $1050
30+ days later: Customer remits payment and the 3% holdback ($1,050) is wired to the nurse staffing business
Day one – generate a customer invoice for services and factor it with Wave Crest Financial
This could be an invoice for a temporary assignment or invoices sent on an ongoing basis, such as retainers and monthly contracts.
Same day or 1-2 business days – get an advance of up to 95% of the invoice amount
Why is this important? Working capital is the key to growth. Without consistent cash flow your agency may find it difficult to meet a large payroll cycle or meet other operating expenses, such as the costs for recruiting, onboarding, and managing your temporary nurse workforce.
Nor are the benefits of factoring nurse staffing agency invoices restricted to payroll funding or operational expenses. It can also be used to help you reduce expenses since it gives you the means to take advantage of your supplier’s quick pay or cash payment discounts.
30-60-90 days later – get any amount held in reserve
We offer factoring terms with very low holdbacks. A holdback, or reserve, is simply an amount held back against customer payment. It’s essentially a sort of insurance for the factoring company in the event the customer short-pays the invoice.
Are there any other fees when nurse staffing agencies factor invoices?
We don’t add in hidden fees or contract terms that drive up your factoring costs. For example, some factoring companies add fees for account administration, and even just for notifying you of account activities. Others tack on fees for due diligence or processing your application. While they may be pulling in a few extra bucks, all these hidden fees add up on the client-side. It reduces the benefits of using factoring to unlock working capital since it takes more money out of the factoring client’s pocket.
Another way some factoring companies drive up costs is by making it hard for clients to leave or requiring factoring clients to factor all (or at least a minimum number or dollar amount) of invoices each month. We understand that our value to you is in the way we do business as much as it is in the service we provide. We want you to be free to do what’s best for your business, and that includes factoring invoices only when it serves your organization.
Is it hard to start factoring nurse temp agency invoices?
No – the process is easy. Plus, our team has decades of experience. We know the ins and outs of factoring including the application process. Apply today and your account could be set up and ready for you to start factoring receivables within just a few days.
Not ready to fill out an application? No problem. Reach out to us for a free, no-obligation quote for nurse staffing factoring services. We’ll provide you with a quote for factoring fees and advance rates. Even if you’re already factoring with another company, we would be happy to give you a quote so you can see whether your temp agency has the best financing plan in place.