How to Meet Your Staffing Company Working Capital Requirements

Running a staffing company is challenging as it is, and this is largely because your main asset or resource is your people. They are the ones that make your business tick, and working with people is never a walk in the park. More than that, there are staffing company working capital requirements that need to be met as well.

 

You may have a bunch of really good people under your belt and ready to be deployed, but you need to match these individuals with the right clients. You need to ensure that the people you have carefully chosen and trained are fit for the job, because you also have clients to please. But the real challenge is the timing of payment, because for the most part, your clients don’t pay you upfront.

 

The Challenge of Running a Staffing Company

 

To keep a staffing company alive, you need to compensate your staff well. This means meeting their payroll regularly, even if the client you are serving hasn’t paid yet. This is where working capital assistance comes in. You don’t have to borrow money to make sure you can make the next payroll. What some staffing companies do is look for working capital solutions, like trading invoices for ready cash. That way, you get to free up your cash in time for paying your people, and let your lender worry about claiming your accounts receivable.

 

Working Capital Needs

 

As a matter of fact, it’s not just payroll funding that requires staffing company working capital. Payroll is a pretty standard part of operations, and there are others that also beg for higher working capital than what a staffing company might normally have.

 

  • Opportunities for growth. There will be times in a company’s life wherein growth opportunities will come. These opportunities don’t come everyday, and when they do, they need to be seized. To grow, you usually need to put out capital, and this is why additional working capital is needed.

  • Credit management. Your firm might have outstanding liabilities as well as outstanding receivables that don’t really leave you much for day-to-day operations. Your capital shouldn’t be tied up to anything ‘outstanding,’ as you will need cash to keep your business running.

  • Seasonal fluctuations. There will be times of the year when more people (staff) are needed, such as during the last quarter of the year when most companies need to hire extra hands to cater to the market demand. The need to temporarily increase your recruitment quota may have an adverse effect on your normal cash flow. For these seasonal payroll needs, you also need additional working capital.

 

For all of these staffing company working capital requirements, you need to have a reliable funding provider. You may check out www.neebocapital.com for a financing package that’s tailor fit for your company. There are many options available, and what’s important is to find what can really help your staffing company based on your specific situation.

 

Please visit www.neebocapital.com to check out all the options we have for your company, and be on your way to financial freedom and growth.

 

Published by

Chris Lanchech

Hi everyone, my name is Chris and I am a junior analyst at Neebo Capital and an inspiring blogger. We enjoy speaking with business owners and entrepreneurs who come to Neebo Capital looking for cash flow solutions. Give us a call toll free at 1-888-382-3766 or Visit us online at www.neebocapital.com

Leave a Reply

Your email address will not be published. Required fields are marked *