April 18, 2023
PRN Funding
Get all of your factoring questions answered, whether you’ve been factoring for years or just getting started.
We’ve compiled these factoring FAQ’s to ensure you have all the knowledge needed to progress further. Have a question you don’t see listed? Give us a call. Our factoring experts are here to help!
What is the sale of accounts receivables?
Factoring is basically selling your invoices to a funder (factor) at a discount in order to receive cash immediately. PRN Funding will purchase your medical accounts receivables for staffing, home care, medical billing, coding, supplying and more.
What type of receivable is acceptable to factor?
Any valid invoice for healthcare services already performed that has not been pledged to another entity.
Are government receivables acceptable?
Yes!
How do you collect?
The same way you would collect. You’ll serve your customers as usual, submit your invoices to PRN Funding and the customer will pay us instead of paying you. This eliminates the wait time for you and we take the responsibility.
How quickly can I receive my money?
Once an account has been established, you can receive cash advances within 24 hours for a verified invoice sent to an approved credit risk.
How do I start the factoring process?
Fill out an application with PRN Funding. Don’t worry; we focus on the quality of your customers who you’ll be invoicing, not your credit or bank history. If you prefer to talk to one of our team members, feel free to call us at 866.527.5407 and we’ll get the process going ASAP.
Can we qualify for medical receivables factoring if we have a history of credit problems such as bankruptcy, IRS liens or judgments?
Absolutely. We focus on your customers that you’ll be invoicing, no you as an individual.
Can we qualify even if we are just starting in business and have no credit history?
Yes, if you have creditworthy customers, working with startups is acceptable for PRN Funding.
Can we qualify if we already have existing credit lines or SBA loans?
Once again, yes!
What do I need to do before you can purchase my invoices?
The work/goods must have been completed, delivered and accepted; and your customer must be a creditworthy risk.
What is the difference between factoring requirements and loan requirements?
Unlike debt financing requirements, PRN Funding does not require a history of profitability, a long operating history, personal collateral or any personal guarantees.
How much will factoring my invoices cost me?
We establish our rates for each individual client, so you’ll know exactly what each transaction will cost. Rates are available upon request. You can call 866.527.5407 or fill out a form and we’ll get you the information you need.
What is the smallest and largest invoice amount PRN will accept?
We have no minimum nor maximum! We can provide funding for a business of any size.
What are the geographical restrictions to PRN Funding's service?
None!
How do you make money?
When PRN funds you the cash advance, a small percentage of the invoice goes into a reserve amount. When your customer pays us the invoice amount, we release most of that reserve, subtracting a small fee that goes to us.
Is the invoice on our billhead or yours?
You inform your customer that the financial rights to the invoice have been sold to PRN Funding. You continue to bill normally. Checks are made payable to PRN Funding and mailed to our address.
How long is the duration of a contract with PRN?
There is no fixed-term to any of our contracts. You can sell us invoices for as long or as short of a period as you require.
Do I have to factor all of my current and future invoices?
No, you can factor as few as one or as many as all of your customers’ invoices. You can stop factoring whenever you want, or continue for as long as you desire/need.
What happens if my customer does not pay?
As a non-recourse factor, PRN Funding assumes the risk of your customer not being financially able to pay for the services provided. However, we do not assume the risk of non-payment due to disputes regarding quality or timeliness of goods or services.
What will my customers think?
Receivables-based financing is used by many of the largest corporations in the world to improve cash flow, support growth, and increase profits. Many of your customers may use this factoring service themselves and others have become familiar with it through other vendors. The fact that you qualify for this ‘credit line’ makes a strong positive statement.
Will factoring be good for my business?
Yes, as long as you wisely use the additional time and cash derived from factoring. Factoring can be quite beneficial if you use it as a means to increase your sales, improve your credit, take advantage of early payment discounts or focus on managing your business. It is a simple financing solution that offers you flexibility that many business owners need or want.
I'm ready to start factoring my invoices. Now what?
It’s simple. Call 866.527.5407 or complete our initial factoring application, and we will contact you promptly to discuss the next step.