Our latest infographic explains how staffing agencies are using factoring for reliable and steady cash flow to cover the many costs related to employment firms.
Note: Full graphic transcript and embed code is provided below.
Staffing Agencies Now Hiring Invoice Factoring Companies
Employment agencies have experienced tremendous growth over the past several years as employers cautiously open full-time vacancies and opt instead for temporary or contract staffers. Though operating a staffing agency can be lucrative, it comes with unique hurdles, including:
- Poor cash flow due to feast or famine pace of the industry
- High payroll financing expenses, particularly for IT or medical staffing agencies
- Unpredictability due to fluctuating industry trends and seasonality
- Ongoing operational costs of recruitment, sourcing and hiring of contingency workers
Though the staffing industry may be booming, cash flow troubles plague employment firms alike. In this sector, poor payroll funding processes can quickly sink a business.
Staffing Factoring Can Benefit Employment Agencies by:
- Improving their business cash flow with regular, timely payments – regardless of when a client pays
- Providing greater financial leverage to support the high cost of payroll funding
- Delivering capital to source, recruit and retain sought-after prospects
- Providing capital in 2-3 days in order to satisfy a client’s demand to hire a large number of seasonal workers all at once
- Outsourcing receivables and collections so staffing agencies have more time and energy to focus on running the business
Steps to Obtaining Staffing Financing from an Invoice Factoring Company:
- Complete a short application for staffing factoring, which can be done in less than 15 minutes. Submit the client invoices to the factoring company.
- The factoring company runs a credit check on the client. Once verified, you collect 80-95 percent of the invoice within 24 hours.
- The client pays the full value of the invoice to the factoring company during the usual payment window. You do nothing!
- You receive the remaining balance (minus a small factoring fee).
Use the Capital from Staff Agency Factoring to:
- Cover the high payroll costs of bulk hiring for seasonal jobs, manufacturing jobs, and more
- Recruit and retain the most sought-after talent by offering competitive salaries and compensation packages
- Expand advertising and marketing efforts to grow the business
- Improve and stay on top of cash flow to better manage organizational growth
- Have capital at the ready to move quickly on opportunities as they present themselves
- Never turn down a large order again due to lack of money with payroll funding and temp agency factoring
Fast-Facts on the Growing Staffing Sector:
- According to the Bureau of Labor and Statistics (BLS), employment for temporary help services increased to 2.8 million in July 2013, up by almost a million from 2009.
- The BLS places staffing as the number one growth sector for the next ten years. Currently, two percent of workers are employed by a staffing agency.
- Since July 2009, temporary staffing employment has grown faster than general, full-time employment. Employers like the flexibility and “try before you buy” option of contingency staffing.
- In 2013, employment firms generated $109.2 billion in revenue, according to the ASA Staffing Employment and Sales Survey. Growth is only predicted to rise.