Medical Staffing Invoice Factoring Case Study 

The following interview highlights a medical staffing factoring success story directly from our client's perspective.

Greg Donnelly: I would definitely recommend PRN Funding, and the reason behind it is PRN Funding is not only a company that loans you money, but they're there to help you grow. They want you to become a medical staffing factoring success, because they want to be successful.

What led you to start First Select Medical Staffing?
Greg Donnelly: Select Respiratory was for sale. It was a small respiratory staffing company. It had a couple of facilities and about five therapists, and the price was right. And I had an opportunity to go ahead and buy it, and I decided to go ahead.

Why did you choose a niche in allied health staffing?
Greg Donnelly: I knew because of being in respiratory and as a respiratory therapist, that there was a shortage of therapists in the Cleveland area, and the institutions were, you know, running short.

What impact did the recession play on your medical staffing factoring success?
Greg Donnelly: When there's a recession most people don't grow. We were growing at a 39 percent increase yearly, and that's a large growth. And what it was, is trying to get loans from the banks, they just weren't interested in loans.

While growth is good, what challenges does it present in terms of hiring good employees and having the cash flow to meet payroll?

Greg Donnelly: Like anything else, to get the best you got to pay higher. And we did, we were the highest-paying company. We did it for a reason: to draw the best talent. With the recession, though, again we're going right back to the same fact is, that in order to pay the best you have to have the cash flow. In a recession time, the receivables come in slower. And it's very difficult for, as you get slow receivables, your cash flow slows up, you're paying higher payroll, you know, you're still trying to keep your 34 percent margins, that you'll end up with a problem.

How did you learn about PRN and why did you select them as a lender?

Greg Donnelly: I did what everybody else does, and I went on the Web. And I was looking through different places and I came across "PRN Funding". Well, PRN is a medical term, and I realized "okay, here's somebody who must know something about medical." Then when I researched it further, and of course I would - a good thing would be to have somebody in a local company. It's easier to deal with, and it was local. So I gave a call to PRN Funding.

Why did you choose to factor?

Greg Donnelly: It might be a little bit more than the banks, but at the same time the banks weren't loaning. So it was a way to achieve the cash flow and still pay a small interest compared to losing the client, or losing the therapist. And I thought it was a great opportunity.

How is PRN different from other lenders and how did that contribute to your medical staffing factoring success?

Greg Donnelly: I interviewed several, and the one who stood out was Phil. Phil walked in the door - he came and visited me - we sat down, we talked. We discussed the recession, we discussed business. We discussed the fact that, what my industry was, Phil was very familiar with it. With his background, it was a good fit. I felt comfortable with him, he felt comfortable with me; we actually were able to agree that day.

Why did you decide to sell the company?

Greg Donnelly: Well as we grew, I kept the company for roughly three years. But one reason I bought it is I was in the best of health, and it was an opportunity. What I didn't realize is with the speed that we grew, that it would become really more detrimental to my health. It was time to sell. Not because the industry, not because of the growth, it was just that it was weighing on me, so I put the company up for sale.

How did PRN help with the sale of the company?

Greg Donnelly: Phil was again a good friend to help in that. I met Phil for lunch. We sat down; I informed him that I thought the company was for sale. We looked at it, and I told him what I thought, and I said, "If you can put the feelers out, I'd appreciate it."

What he did is was gave me the names of people who would be interested. He recommended the level that he thought that they could achieve to continue the growth. Because the one important thing is, I didn't want to just sell the company. I wanted the company to continue. My reputation, my allegiance to it - I wanted to see the company continue to grow. I'm still involved with it, but I wanted the company to grow. I wanted somebody who understood it, and somebody who wanted to do that. And I met a gentleman named Steve Marcus, and we've turned out to be good friends, and he's an excellent owner.

The success that Greg found with PRN Funding is just one medical staffing invoice factoring success story that we have shared. Read another medical staffing factoring success story.