What is the Healthcare Staffing Factoring?

It is common to believe that staffing financing is complicated. Factoring is very simple. It only takes five simple steps...

Step 1: Sell Healthcare Staffing Agency invoices to a Factor

The first step in the healthcare staffing factoring process is when the customer (presumably a hospital) requests that the agency fill the position. The agency can invoice the facility for hours worked once an employee has completed the shift. After the agency invoices the medical facility, the agency can also sell the invoice to a staffing factor for healthcare physician email list.

The invoice sale is typically done electronically. This means that the agency faxes or emails a copy of each invoice and the signed time sheets to the healthcare staffing factoring agent. An Assignment of Accounts Receivables form must accompany the timesheets and invoices. This forms lists all invoices that the agency wants to sell to the factor, and also includes the signature of an agency employee.

Step 2: Check your new debtor credit score

After the schedule of timesheets and invoices have been received by the healthcare staffing factoring agency, the account manager reviews them for potential new customers. New customers, also known as. If there are new customers (a.k.a. debtors), the manager will conduct a credit review to determine if a line is available for them. The credit review process is usually completed within 24 hours after receipt. After a new debtor is approved for funding, an account manager will inform the debtor's accounts payables team that they have received invoices from the agency and should send the payment directly to the factor.

If no new debtors are included in the schedule, the account manager will simply move on to step 3 of the healthcare staffing factoring procedure, which is verifying the invoices submitted.

Step 3: Healthcare Staffing Agency Notifies And Verifies Debtors

A healthcare factoring company advances cash based on services rendered. It is customary for the factor and debtors to check with them to ensure that they are satisfied with staffing services and that they will pay the invoice.

Factor to factor, the level of detail required for verification is different. Factoring firms may verify each invoice and confirm with a DON (Director in Nursing) that Employee X from ABC Staffing worked a 12-hour week prior. Other factors may conduct "spot verifications", where account managers select random invoices from each schedule to verify. Factoring firms may verify invoices more often than others, but staffing factoring agencies should remember that they cannot advance money on an invoice unless the invoice is paid.

Step 4: Healthcare Staffing Agency receives cash

Once the verification and notification procedures are completed, the healthcare staffing agency factor can purchase invoices from the agency and receive advance cash. Healthcare staffing factoring companies send money electronically by using same-day wires or ACH (automated clearinghouse) transfers. This is basically an overnight funds transfer.

Keep in mind that different criteria may apply to receiving a same-day wire and an ACH. Some factoring companies may have a cut-off date that requires healthcare staffing agencies or other organizations to submit their invoices and timesheets before the deadline to receive funding on the same day.

Step Five: The Healthcare Staffing Factoring Company receives payments and remits the Reserve back to the Agency

As you can recall, the healthcare staffing factoring company notifies debtors of an agency to direct payment to the factor when it buys an invoice from that debtor. A factor receives payment for an invoice. It retains its fees for advance cash and then remits any difference to the healthcare staffing agency. The "Reserve" is the term used in factoring.

There are many positions when it comes to the frequency that a healthcare factoring company releases reserve. While some factors release reserve automatically on a specific day each month, others do not. Some factors require that a minimum amount of reserve be maintained at all times. It doesn't matter what the situation, it is important that healthcare staffing agencies are aware of the reserve release procedures for each factor.

It is common to believe that the healthcare staffing factoring process can be complicated. While the exact steps may differ from one factor to another, the basic model of healthcare staffing factoring does not change.