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from staffing to manufacturing to transportation. These factors are true generalists both across industries and geographic regions. Then there are some factors that focus their operations in one specific geographic region. These smaller local factors have a home field advantage so to speak, in which their clients find comfort in the fact that their factor is literally around the corner. These factors will generally fund a wide variety of businesses; however they will all be concentrated in a definable geographic region. The final category is comprised of factors that concentrate their funding in one specific niche, offering a heightened level of industry expertise to their clients. Their customers are generally national in scope, but are focused on a small handful of industries such as medical transcription factoring or medical coding factoring. These factors’ clients feel more comfortable knowing that their funder understands the unique characteristics of how their industry operates. PRN Funding is just one example of an industry-specific factor because we focus on funding the healthcare vendor industry, namely medical transcription services, medical staffing agencies, medical coding companies and medical supply businesses. The size of your business, the services/products that you provide and whom you sell to all play a part in choosing between the three types of factors. Whether or not you should go with a general or industry-specific factor, a national or a local one, Another reason why medical transcription services should look into selling their receivables is that factoring companies do not base their funding capabilities on a business owner’s personal credit or even the company’s credit history. Rather, factors are most concerned with the creditworthiness of the medical transcription service’s clients, who are also called account debtors; to pay them after the invoice has been sold. A traditional bank, on the other hand, would be less concerned with the service’s customers. From a banker’s perspective, it’s the business owner’s personal credit and the company’s operating and financial history that will determine whether or not they would approve any loan amount. one that funds larger companies or one who works with start-ups
all depends on what you want for your own company. It all goes back
to that original question, “Will this factor best be able to meet
my company’s needs?”Stay tuned for the next article in this
three-part series, which will discuss the differences in rates and
fees among factors and teach you how to compare and contrast to
find the best factor for your medical transcription business. About
the Author Philip Cohen is founder and president of PRN Funding,
LLC, which is an niche player in the healthcare staffing invoice
financing market place. Through a process known as factoring, PRN
Funding provides business owners with the financial resources needed
to grow and compete in the industry. With no minimums or fixed terms,
PRN Funding (www.prnfunding.com) provides medical staffing agencies
with flexible and immediate access to capital.ties |
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