In recent years many small business owners and industry experts have been vocal about their opinions of the Affordable Care Act (also known as Obamacare). These groups feel that the new federal mandate, which requires companies of 50 or more employees to provide adequate health care options, will be prohibitively costly, reduce hiring, and stagnate growth among other things.
Business Experts Foresee Temp Agency Factoring Growth Resulting from ACA
Yet some sectors and businesses are predicted to experience unprecedented growth and development as a result of the ACA. According to Recruiter.com, staffing agencies and businesses that support contingency staffers such as staffing factoring and temp agency companies are likely to grow as more and more companies turn to independent contractors and temporary staff to minimize hiring costs and costs associated with ACA compliance.
Staffing Agencies May Rely More on Staffing Factoring
In a twist of fate, these staffing agencies themselves are more than likely going to have to provide health care plans for these so-called contingency workers. While business volume is expected to increase for these staffing companies, their expenses are also likely to increase as a result of having to provide this health care coverage. That is, these staff members may be contingency workers to the companies that actually hire them but will more than likely be considered full time workers to the staff agencies themselves.
Staffing financing companies that provide account receivables factoring are readying themselves for this growth by expanding their credit lines, as needed, so that they can best support their expected growing financial needs. The practice of factoring receivables provided by invoice factoring companies enables businesses experiencing rapid growth to get the cash they need quickly to keep pace with changing business demands.
In addition, accounts receivable factoring is preferred by many as the financial option for companies experiencing cash flow issues as a result of dramatic changes stemming from ACA. Invoice factoring services are ideal for businesses that have predictable cash flow shortages and for those that need cash right way to cover fast-growing payroll (including health care plans). Though it remains to be seen what will actually take place, it is likely an increase in staffing agencies will lead to a parallel increase in temp agency factoring, staffing financing services.