Financing for Staffing Companies is Easy With Staffing Factoring
The number of staffing and temporary employment agencies has increased tremendously in the past several years. This is because many employers are opting to hire temporary workers before hiring full-time ones to better manage costs.
This rapid growth in the staffing and employment industry, however, has left some firms feeling their cash flow being squeezed. While staffing may be a lucrative industry, it has major expenses such as payroll, recruitment, hiring and on-boarding costs to routinely contend with.
Business Factors provides just-in-time staffing financing for general and specialized employment firms. If not managed properly, the costs of employee payroll, which includes benefits packages, insurance, vacation and sick pay, and even bonuses, can cause staffing firms to freeze up due to lack of working capital. To operate effectively, staffing and employment agencies must maintain high levels of liquid capital in order to be able to cover their expenses such as payroll.
Staffing Factoring with Business Factors Enables Agencies:
- Collect on invoices in 2-3 days – not 30 – so you can meet payroll financing obligations on time. A staffing firm that struggles to meet payroll is not likely to keep its doors open for long in today’s competitive environment.
- Offer desirable compensation packages to sought-after professionals such as software engineers and developers, database administrators, IT professionals, nurses, medical technicians, physicians, and others.
- Have the financial capacity to hire, on-board and cover the compensation costs of high volume seasonal workers in a short period of time. Seasonal businesses must have their workers lined up and ready to go when the busy time comes, and staff agency factoring can make that happen.
Never Turn away a Client
Temp agency factoring enables your business to have enough cash on-hand to meet payroll obligations while having money in your accounts left over so cash flow doesn’t suffer. Having to say no to a potential client can be devastating to any business, yet this is particularly true in staffing where reputation is everything and competition is fierce. By working with a staffing factoring company like Business Factors, you won’t ever have to say no to a prospective client for financial reasons.
Staffing Factoring Fills Payment Gaps Fast
Staff agency factoring resolves the problem associated with the inherent mismatched between invoice collection terms and payroll issuing terms. That is, your client pays you, the staffing firm, in 30-days yet you are obligated to issue paychecks to employees in 2-week intervals. This naturally occurring misalignment between your incoming and outgoing funds causes problems for a wide range of businesses, particularly high expense ones such as staffing or employment agencies.
Staffing factoring allows your business to get ahead of this payment misalignment so that you have sufficient working capital to pay your payroll expenses without having to worry about collecting on your incoming receivables. By adding a layer of predictability to your receivables handling with temp agency factoring, you can add some peace of mind to your overall business operations and cash flow.
Support Strong Working Capital
Those who work in staffing and employment sector know another large expense can be on boarding new employees. In some instances, this may require training, testing and evaluating current skills, and running background and legal checks. Recruitment and hiring are another big cost in staffing, particularly if you are trying to recruit sought-after professionals or employees that companies have a hard time finding.
Staffing financing allows you to collect on existing receivables right away so you can make the best, forward-looking investments regarding your recruitment and hiring efforts. As a temporary agency, you are always looking ahead for the next great hire and it can be hard to seize on the opportunity if you lack the resources to attract and keep such candidates.
Why Business Factors Is The Choice For Staffing Agencies:
- Fast financing in 2-3 business days.
- Competitively priced rates that are within your budget.
- An easy to understand application process that takes 30-minutes or so to complete.
- Accessibility – staffing financing companies work with companies the banks might not otherwise do business with, including new firms, companies that need to improve their credit score, or businesses that cannot show a record of profitability or revenue growth.
- An online account management system for transparent receivables processing. This means no hidden or late-payment fees.
- Assistance with back-office receivables and invoice handling so you can spend your time focusing on revenue-producing activities.
- Friendly customer service and knowledgeable staff to guide you through the staffing factoring process.
So if your staffing or employment firm needs to shore up additional capital to bring business to the next level, get the staffing financing you need today with Business Factors and you’ll never have to worry about meeting payroll obligations again.