Allied Health Staffing Factoring – A Financing Solution For Expanding Companies

The growing nurse shortage has been in the headlines for years, but there is another very real shortage that’s also affecting our nation-the allied health personnel shortage. Defined as clinical healthcare professionals that assist physicians and nurses, allied health personnel are an important part of the healthcare system. Hospitals, nursing homes and clinics are beginning to feel the stress of the aging Baby Boomer population, as these institutions are seeing the allied workforce retiring in droves at the same time that patient intake is increasing. Given the circumstances, now seems like a perfect opportunity for savvy business owners to develop their staffing agency to meet the new demands.

However, growing a business takes money – Allied health staffing agencies need cash to cover the costs of advertising, recruiting, and expanding offices. Unfortunately, right now is a bad time for businesses who are seeking ongoing financing because banks have tightened their lending criteria as a result of the national credit crunch. Moreover, the economic decline instigated a jump in small business credit card interest rates in addition to overly-obtrusive credit restrictions on small business owners.

This situation puts allied health staffing business owners in a conundrum-On the one hand, now is a prime opportunity for supplemental staffing agencies to expand, but on the other hand, no one seems to be lending to businesses these days. Luckily, accounts receivable factoring firms are still lending. What’s more, factoring firms do not have the same arduous loan criteria as their conventional counterparts. Here are a few ways that allied health staffing factoring differs from traditional bank loans:

Quick Funding Application Process-Factors generally do not require a history of profitability, personal financial statements, business plans or personal guarantees. Because there are fewer documents needed, allied health staffing companies can receive their first funding within 3-5 days of returning factoring documentation.

No Long-Term Obligation – Many factoring firms will not require business owners to sign a long-term contract. In addition, once the staffing agency has been approved, it can stop or start factoring at any time.

Access to Unlimited Capital – With bank financing, once a company hits the credit limit, it cannot borrow more cash. Invoice factoring is the only source of business financing that grows with the company’s sales. As sales increase, more money becomes immediately available to the agency owner.

No Liability on the Company’s Balance Sheet – Because factoring is not a small business loan, there is no debt, and there are no monthly payments to ‘muddy up’ the company balance sheet.

Allied Health Staffing Industry Expertise – Banks work with all kinds of companies, so they might not be familiar with the intricacies of the industry. There are factoring companies out there who understand the ins and outs of the allied health staffing industry, so business owners won’t have to worry about teaching a factor about their business model.

The allied health workforce will continue to play an integral role in the healthcare system as the demand for their services continues to rise. This need presents a great opportunity that allied health staffing agencies can use to their advantage. In order for these staffing agencies to acquire new customers, they will need to hire additional employees and possibly expand their infrastructure. Unfortunately, these staffing agencies also need to accomplish this growth during a time when it has become increasingly more difficult to obtain traditional financing. Fortunately, those allied health staffing agencies can use factoring as a flexible financing solution to the cash flow problems that can arise during periods of growth.

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Financing Solutions That Never Fail!

Many real estate buyers have experienced great difficulty in completing their home purchase over the last few years, due to a lender side issue other than the normal credit and job confirmation issues. Many times the buyer has been an A+ credit risk and has had a job for several jobs, but has a problem getting the loan to close with the banks. We can trace all of these problems back to banks and their hesitancy to loan based on current market conditions.

Their Logic

Why would you loan out a trillion dollars when you could create a log jam and loan out ten trillion? The idea here is this, the banks are making borrowing money difficult because they have essentially free money from the government with rates for banks at.5%, then they turn around and loan it at “historic lows” for about a 4-5% per year pure profit. They are taking taxpayer dollars for free, turning around and loaning them for 4-5 points per year back to the same taxpayers they initially got the money from.

Why would you loan out a bunch of different loans when census numbers say that 88 million young people will be getting into to the housing market over the next few years, and many will want home loans. Just make the buyers of today wait a while and you can make your lending environment, regarding laws that apply to the lending industry, more friendly to your industry.

Our Solution

Banks were not initially the lenders in real estate, owners were. When a buyer did not have the cash to pay off a house, the seller simply held the deed and charged and collected interest until the note was paid in full. This is how Americans should buy real estate now.

Even if you have to purchase a building lot and wait a few years to build on it, you are in a far better off situation financially than if you involve a bank. With all of the fees and interest banks charge you, plus the insurance that covers their butts that they make you pay for, you are really the one taking the risk, not them.

The simple solution is for Americans to be patient and not purchase a home until they have at least 20% saved up, then buy land. Buying land, on either a seller note, or your own cash, will make financing your home much easier. Getting back to a frugal mindset that values cash more than materialistic possessions will help you appreciate your money a lot more, and help you grow it more than anything.

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