|The Medical Staffing Story
Mary Lou had to stop working on her laptop as the company’s head of marketing department came into her office. He slammed a magazine down onto her desk. He was smiling from ear to ear. Mary couldn’t help but to quickly flip the pages of the magazine to understand why the marketing head is acting that way. Apparently, the reputable magazine which is a business guide had made a publication listing the best staffing businesses in the country.Her eyes grew big as she discovered her own company, Lou Medical Staffing Solutions is on top of the list in the under $99 million revenue section. Her grin grew quite wide too.She couldn’t believe choosing to use a factoring company could make all the difference.
In those years of the recent recession, Lou Medical Staffing Solutions was barely pulling in any revenue. The main issue during the recession, was not really the demand. It was actually the supply of quick payment for the services rendered. Even though there was business available for the firm, collecting payments took really long sometimes reaching up to three to four months and needing plenty of time and manpower for the collections. Also the downsizing of the recession didn’t hurt their industry so much as the boom in other medical staffing companies and the increased competition to find the best people for the right medical postings.
Of high importance was cash flow. The company faced difficult times wherein cashflow was almost non existent. Mary had to resort to applying for 3 different company credit cards in just 6 months just to be able to pay for essentials like web hosting, bills, utilities and items that they can never go without like toilet papers for bathrooms. However, the credit cards could not really cover for larger expenses and situations.
To maintain an excellent reputation, Lou company maintained the highest salaries for their employees among all other medical staffing company in the region. In such a skilled industry like medicine, you had to hire educated practical people who knew their worth and salary requirements. Payroll was really a huge thing in the monthly life of the company. If Lou couldn’t keep up with this, it will surely not be able to compete for the best medical workers.
She had heard about factoring for other industries but would it work for medical staffing? Mary just couldn’t feel sure about factoring at that time so she went with the traditional approach and applied for a loan at a big bank. The loan she applied for was denied. She transferred her application to a smaller bank but also got denied. It appeared that the banks were the ones who did not have enough knowledge about the medical staffing business. The bank’s rates were lower but they were just not interested in loaning the funds needed for Lou to stay profitable. See Transportation Factoring Company Reviews.
In order for Lou to stay afloat, Mary made the best decision possible for her company. She went on interviewing factoring companies. There were many professional representatives who made offers but Jonathan was the one she liked the most because he came in representing his very own factoring company. He was very easy to deal with and highly professional. He has displayed interest in the background and culture of the company. He also had a clear understanding of the medical business and possessed a clear vision of the needs of the company. He was the sort of person whom Mary could trust to contact clients’ accounts receivable on the firm’s behalf.
Jonathan explained to her that he could use his expertise in the medical industry to properly vet her invoices though he knew many of her clients from experience and could tell her he had complete confidence in their ability to work together. Soon, in less than 72 hours, he would provide her with the upfront payments for her invoices and Lou would have the freedom of a freer cash flow. Yes, she knew the factoring company would contact the medical centers for the accounts receivable but she was confident in the factoring company’s professionalism. Also Lou Medical Solutions was able to keep some long-time clients’ invoices off the accounts receivable list for factoring. Those would then be recorded into the Lou accounting books. This flexibility was the main reason Mary opted for this decision. Although she was happy to have the factoring company would take over the trouble of collections. By utilizing a factoring company, Lou was able to minimize costs because it had the freedom to remove office positions that are now no longer necessary because the accounting services are now provided by the factoring company, including some tax services.
Signing at Jonathan’s factoring contract changed the course of the staffing firm. The numbers just felt right.The company did its best to keep the 30% margins and the high payout of 90% offered by the factoring company for the invoice amount has permitted the company to go beyond those margins with the availability of rich cash flow.
The firm had been quite successful in its push to recruit pharmacists and respiratory specialists to fill the shortage in various regions especially as the good reputation of the staffing firm spread and medical centers from across the country had begun making inquiries. Furthermore, when a strong hurricane affected the region, the need for plenty of different medical workers surfaced. Hospitals were in great need of temporary staff to provide additional care for the victims.The new depth of cash flow gave Lou Medical Staffing Solutions the chance to rise to the occasion and fill those staffing needs promptly. Payment from the hospitals trickled in very slowly after the natural disaster especially as many hospitals waiting for emergency federal funds but that did not halt Lou’s business efficiency as Mary had a reliable relationship with a factoring company.
Mary saw other popular companies such as CompHealth in the magazine cover. Yes, Lou does not produce the same amount of revenue like CompHealth yet at this point, but surely, they do have the best network of skilled nurses and medical workers. Mary felt a sense of pride learning that her nurses were all highly recommended and were frequently requested by hospitals to renew contracts in the entire region. This was true to all other medical workers such as those semi-retired doctors, therapists and pharmacists who were brought in daily on board. This will surely not be possible without the aid of factoring and all the flexibility it offers.
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