4 Problems That Staffing Funding Helps Solves
Numerous businesses use staffing funding, also referred to as invoice factoring, for gaining the finances they need to continue hiring and growing their businesses. Rather than wait for months for a bank loan, invoice factoring is the most popular way to obtain the funds they need among business owners.
If you face some of the obstacles below, then you may be the perfect candidate for staffing funding.
1. Limited cash flow
If your business has a limited cash flow due to inconsistent invoices, this can cause a major halt in your productivity. Without a regular cash flow that you can rely on you can end up not being able to pay bills on time, payroll, or expand. Yet, with staffing funding you can help make sure that you can pay your staff on time. Because invoice factoring gives you cash advance on your invoices, you will have the money you need to do as you choose.
One of the downfalls of having business accounts receivables is that it is often unpredictable when you will get paid. Because it can take a long time, you may be left in a waiting period that you need cash flow, but aren’t receiving those funds when you need them. Invoice factoring solves this problem. With invoice factoring, you can take those accounts receivables and get an advance on them right away, so that your cash flow is more predictable.
3. Continuous costs of hiring
Another problem that staffing funding can help resolve is the cost of recruiting and hiring. Because of the previous problems we discussed, such as having a limited cash flow, your business may need a better way to fund your staff so that you can continue to hire and grow your business.
4. High payroll expenses
We understand that payroll can be costly and if you’re struggling with keeping a consistent cash flow, then this can become worrisome. If you want to make sure that you make payroll on time, so that your staff is happy and continues doing a good job, then invoice factoring is crucial
Why Invoice Factoring Is The Best Solution
If your business is having trouble with funding, invoice factoring is the best solution because it is an easy process and one of the quickest ways of financing. Bank loans are hard to come by and they take a long time to be approved. Not only is it a fast way to finance, it is also not a loan, so you will be debt free, which is a great advantage when you are trying to work your way out of debt, or stay debt free. The factoring company will purchase your invoices and give you an advance of up to 96%. Once they receive the sum from your client, you will receive the rest of the money except a small factoring fee. Because many businesses have invoices that need to be paid, they are turning to invoice factoring for reliable, convenient financing.