In the staffing industry, you typically come across cash flow restraints and troubles. In most cases, staffing agencies struggle with cash flow due to outstanding invoices. This can cause agencies to wait anywhere from 30 to 90 days to receive payment from clients. This is not only a major nuisance, but can keep you from carrying out the daily operations of your agency.
Using Staffing Invoice Factoring to End Cash Flow Problems
Rather than letting your cash flow get worse and worse, you can utilize staffing invoice factoring. Invoice factoring allows your business to get paid faster and improve your cash flow.
What is Staffing Invoice Factoring?
When you use staffing invoice factoring, you work with an invoice factoring company to get a cash advance for your outstanding invoices with low rates. The invoice factoring company will take the time to review your outstanding invoices to advance you up to 96% of its funds in just 24 hours or less. The factoring company approves and determines the percentage to advance based on the financial standing of your clients, as they take on the task of collecting the remaining balance from your clients.
With invoice factoring, your business can decrease the time between completing work and getting paid. This will help your business accomplish the following.
Pay Employees On Time
When you get paid on time, you’ll be able to pay your employees on time. This is a common problem in the staffing world. When payment is late, you’re unable to pay your hard working employees on time and in full.
With constant and consistent payment using staffing invoice factoring, payday will no longer be a stress in your daily tasks.
Increase Working Capital
Staffing invoice factoring is a simple financial solution that makes it easy to increase working capital. Simply reach out to an invoice factoring company with your unpaid invoice on hand. The factoring company will approve your invoices in just 24 hours, allowing you to secure working capital practically overnight.
Get Funding without Incurring Debt
With invoice factoring, you’re not borrowing any funds—you’re simply getting access to the money already owed to your business. This allows you to get the funds you need, without digging yourself into a financial hole.
Another form of staffing invoice factoring is non-recourse invoice factoring. With non-recourse invoice factoring, your business will be able to get the same services as invoice factoring, but without the risk of repayment. With traditional invoice factoring, your business will be responsible for repayment of the money factored in the event that your client fails to complete payment with the factoring company.
With non-recourse invoice factoring, the company takes on the risk of repayment—keeping your newly acquired working capital secure.
Grow Into New Markets
With a strong source of working capital from staffing invoice factoring, your business can expand into new markets. You can use your working capital to market to new locations, take on difference caliber clients, and even open new offices.
Using Staffing Invoice Factoring for Growth
By using factoring, you’ll be able to have the financial freedom that you’ve always wanted. The above are just a few of the many ways that staffing invoice factoring can help your business. This fast, easy, and affordable financial service can help your business grow larger than ever before.