Factoring for Staffing Companies

factoring for staffing company
All you need to do is send in your weekly timecards and invoices, and you can get between 80% and 93% of the cash in your account the very next day.
Contact us now.

Staffing companies these days fulfill a vital role in our economy. The stats are clear on this. These staffing companies employ 11 million people per year, and they occupy just about all the jobs across all industries. Staffing companies offer benefits to employers, employees, and to the economy as a whole.

Employers benefit because they don’t have to undergo the hassle of hiring competent workers, as the staffing company has done this job for them already. They can get as many workers as needed, and it’s less of a hassle when they need to let go of workers they don’t need any more. And if they find a great worker, the employers can just simply offer them a permanent contract.

Employees also benefit from staffing companies because they get employment that they may otherwise not get. And staffing companies find the employers for them, so they don’t have to scurry around looking for work.

But despite the many good things staffing companies offer, they may also experience problems along the way.

Why Do Staffing Companies Have Problems?

The problem that many successful staffing companies have is that they may not have enough cash flow to handle the payroll. More and more companies these days are looking to staffing companies to provide for their manpower needs. That means staffing companies have to spend money looking for the appropriate candidates, and they also have to meet payroll requirements.

But clients who make use of staffing companies don’t pay on the dot. Usually, they pay 30 days or so after being billed. This delay is causing a lot of headaches for staffing companies. Some have even been forced to not accept new requests for manpower because they don’t the cash flow to recruit and pay for new workers.

How Factoring Helps Staffing Companies

This is where factoring comes in. In factoring, the staffing company may be able to get as much as 80% of the value of the accounts receivable immediately. That money can then be put to good use hiring workers to fill some urgent slots. There’s no need to not accept any new requests anymore.

When the company which needed the extra workers then pays the bill in full, the factoring company forwards the rest of the amount to the staffing company, minus the fees they charge.

This method is in many ways superior to asking a bank for a loan:

  • Banks don’t always grant approval for loans, while factors have much higher approval rates. That’s because factors don’t care how good the credit of the staffing company is. What’s important is the paying history of the company that used the temporary staff.
  • Banks take a very long time to grant approval, but factors may take as little as a single day to decide to grant approval.
  • Factors take over the collection duties, so staffing companies don’t have to set up an entire department for this purpose.
  • Factors don’t interfere with how a staffing company uses the advance. Banks, on the other hand, want to know how the money will be used.
  • Factoring doesn’t count as a loan. It’s a cash advance, technically speaking, because the staffing company is using its own money instead of the lender’s money.

So if you’re running a staffing company, think about getting factoring services if the demand for your workers is making it difficult for you to meet payroll on time.

 

Invoice factoring for staffing companies | We offer fast factoring for staffing companies

factoring for staffing company
All you need to do is send in your weekly timecards and invoices, and you can get between 80% and 93% of the cash in your account the very next day.
Contact us now.

There are a lot of businesses out there that fund payroll and growth for staffing companies. There are multiple businesses all across the U.S. and Canada that deliver reliable, timely service to their clients. You should choose a company based on the ability to provide maximum cash flow, so that you can bill today and get paid in full the next day, one that lets you eliminate bad debt, such that you get free credit protection on your customers, one with full payroll services, one that accepts young companies, one that doesn’t have a minimum volume required, and one that lets you only pay for what you use.

 

When you sign up as a client at a great company, there should be a program that is tailored and works for you. It should provide as-needed cash flow, maximum cash flow, and cash plus total services. As-needed cash flow means that if your cash flow happens to suffer sometimes from peaks and valleys at seasonal times, or because of customer frugal behavior, or unexpected orders, then a cash program can really do the trick. When you have to have the cash, send in your timecards and invoices on customers that are credit-approved. The cash will be transferred, minus the fee for the service, and it will be transferred into your account the very next day too.

A company should also provide maximum cash slow so that if your company is expanding, you will need to get maximum liquidity from your assets. You can join up for maximum cash flow with a great company that will help you get that much-needed cash right when you need it. All you need to do is send in your weekly timecards and invoices, and you can get between 80% and 93% of the cash in your account the very next day.

When you need a complete A/R and credit office, and you want to cut your expenses and eliminate bad debt, while reducing overhead, then go with a company like this. You need to concentrate your staff on building a business, not making calls for collection. Cash plus total services offer a complete working solution for administration and working capital. You can use a full-service approach if you want. Even more than any other package available, you will get the resources you need to help grow your business. You can start the process, and the company can take it from there afterward.

 

Now that you’ve had a thorough introduction to invoice factoring for staffing companies, and what it can offer, you’d be wise to hook up with an invoice factoring company right away to get the money you need for your struggling staffing company business. If you’re going through a hard time with your own staffing business, it may be the only way to get the much-needed working capital you need to survive. It is imperative that your business doesn’t suffer since there is a lack of working capital, and you need to secure that through a reliable company.

 

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