In the fast-paced world of healthcare, managing cash flow can be a challenge—especially for a temporary nurse staffing company that often has to wait 30, 60, or even 90 days for hospitals and clinics to settle their invoices. For one nurse staffing agency, this delay was starting to threaten their operations. They needed a way to pay their nurses on time, regardless of when their clients paid them.
That’s when they turned to Factor & Fund for a solution.
The Cash Flow Struggle: A Growing Agency in Need of Stability
The staffing agency had been growing rapidly, securing contracts with several large healthcare providers. But with growth came a heavier payroll burden. Nurses were deployed to various hospitals across the state, and the agency was responsible for paying them every two weeks, even though payments from hospitals could take months to arrive.
Despite their success in securing new contracts, the agency faced a constant cash flow crunch. Banks were unwilling to extend financing due to the agency’s inconsistent cash flow, and traditional loans were not flexible enough for their needs. They needed a financial solution that matched the ebb and flow of their business.
The Invoice Factoring Solution
After hearing about Factor & Fund, the agency decided to explore invoice factoring as a potential solution to their cash flow problem. The process was straightforward and quick, which was exactly what they needed.
- Submitting Invoices: The agency submitted its unpaid invoices to Factor & Fund. These invoices represented the amounts owed by hospitals for the nurses placed.
- Immediate Cash Flow: Within 24-48 hours, Factor & Fund advanced 90% of the invoice value, giving the agency immediate access to the cash needed to cover payroll and operational expenses.
- Final Payment: Once the hospitals paid the invoices—typically 45-60 days later—Factor & Fund returned the remaining balance, minus a small factoring fee.
A Game-Changing Turnaround
With invoice factoring in place, the staffing agency’s cash flow issues were resolved almost overnight. They no longer had to worry about delayed payments from clients, as Factor & Fund’s advances provided them with the liquidity they needed to stay operational and meet payroll deadlines.
Thanks to Factor & Fund, the agency could:
- Grow confidently: With a reliable cash flow in place, they could take on new contracts without worrying about whether they could meet payroll.
- Avoid debt: Invoice factoring allowed the agency to access funds without taking on loans or increasing debt.
- Simplify their finances: The factoring process was straightforward, saving time and allowing them to focus on placing more nurses rather than chasing down payments.
The Outcome: Sustained Growth and Stability
Today, the nurse staffing agency is thriving. With the help of Factor & Fund’s invoice factoring, they’ve expanded their operations across multiple states and secured larger contracts with top healthcare providers. Cash flow is no longer an issue, and they are able to focus on their core mission—providing quality nurses to hospitals when they need them most.
“Invoice factoring has been a game-changer for our business. Thanks to Factor & Fund, we’ve been able to manage our growth, meet payroll on time, and maintain stable cash flow—something we struggled with for years.”
– CEO, Temporary Nurse Staffing Company
Factor & Fund offers flexible, fast invoice factoring solutions for businesses facing cash flow challenges. If your business is waiting on payments but needs cash now, contact us today or visit factorandfund.com to learn how we can help you.