Temp Staffing companies Can Help Small Businesses Develop

August 15, 2012

Think of this, the national employment rate in June was 8.2%. That means that there are a lot of GOOD people out of work. If your business is seeking a qualified individual but do not want to higher for the long-term I highly recommend looking into a temp Staffing company.

Temp Staffing companies Can Help Small Businesses Develop
Another benefit using a temp Staffing company to find short-term employees is you are able to expand your reach to highly experienced workers qualified in special areas. According to The Wall Street Journal after surveying 811 business owners found that 31% reported “they had unfilled job openings in July because they couldn’t identify applicants with the right skills or experience.”

Additionally, 41% of 154 small manufacturing firms surveyed reported they were un-able to find skilled and experienced workers.

Why?

Most business owners get applications from their websites, and walk-ins. Sure they get tons of applications, but a lot of the applicants have similar skills. By leveraging the databases Temp Staffing companies have you can narrow down your search. Business owners told The Wall Street Journal “We could grow a lot faster if we could find the right people.”

In the past it would make sense to train employees. However with the high turns in technology there may be a steep learning curve. Or maybe you’re looking for an applicant with a skill you don’t possess like PHP coding.

We recommend looking to Temp Staffing companies for new talent. We also recommend looking to Neebo capital to help you with your cash flow so you can put on new workers in the most efficient way possible. Maybe you have cash flow tied up in your accounts receivable or you have tried working with Temp Staffing companies in the past but they pay too slow. Either way give us a call and we will gladly help.

Good Luck
Chris

How To Select The Right Factoring Company

There are many variables besides just the “lowest” discount fee that will come into play when selecting the factoring company best suited to your company’s needs. This Article has the important things you should look for when picking a factoring company:
pick the right factoring company

You can find several key attributes you should search for before picking the right factoring company for your business. A reliable factoring company should have a high quality credit department, a professional collection staff, a long history, financial strength, and current systems for keeping their customers informed with real time information.


In contrast to a standard bank or perhaps a finance company, factoring companies have a day-in, day-out relationships with regards to their clients, so selecting the right factoring company boils down to who can you see your business aligned with?

Generally, the response for this question is most likely the factoring company with the lowest discount fee and quite often it is the factoring company that fits various other needs better than the comapany with the lowest fee. In the end, determining the overall cost can prove difficult, so you may want to consider additional critical variables. Heres points to consider in order to pick the most suitable factoring company for you:

Does the factoring company have a fully staffed credit department?
Any factoring company that has a good credit department, could be your choice if you’re searching for a factoring company which will help you make prudent credit limits for your customers. A factoring company which does not have a fully staffed credit department is likely to not approve ideal credit limits and because of this, may expose your company to incorrect levels of risk. However, a factoring company in which does not approve enough credit to have capacity for your needs might entirely restrain your companies capacity to grow.

Does the factoring company have a collection department?
You just might pick a factoring company with a fully-staffed collection department.Why? Because It might stun you to know that a large number of factoring companies don’t have a collection department. For anyone who is considering choosing a factoring company which takes their duty of collecting receivables seriously, the factoring company will assign your business with two contacts: an account representative + a collection specialist.

This is important because factoring companies WITHOUT a collection department are forced to assign the task of collections to one account representative.

Does the factoring company have a good track-record?
A factoring company in which has been in business greater than ten years likely comes with the expertise needed to supply an quality level of service. A factoring company that’s endured various business cycles demonstrates effectiveness. However If in doubt, ask the factoring company you’re talking to for bank references or information about their financial shape. Most of all, ask your factoring company for client testimonials if possible customers that are in your industry.

Does the factoring company have a specialist in your industry?
You most likely are searching for a factoring company that knows your industry. Industry specialists are extremely vital. If you happen to run a staffing company, you should seek out a factoring company with staffing specialists. For instance a staffing factoring company will be familiar with your regulations and payroll needs and provide unique services such as payroll checks, payroll deposits, payroll reporting, payroll software, invoicing and invoice mailing. since, a staffing factoring company will certainly have their own first hand experience in dealing with hundreds of other staffing companies. If a staffing factoring company already knows your customers, you will save money because you will not need to spend money on credit reports.

Is the factoring company the best size for your company?
Perhaps you may be interested in a large or small factoring company, based upon your philosophy. Your best bet could be a factoring company that is somewhere in between small enough to provide personalised service and the means to access top management, then again large enough to deliver financial stability, the capacity to accommodate your needs, as well as the skill to survive challenging economic times.

Continue reading How To Select The Right Factoring Company

What is Factoring?

By: Chris Lanchech
What is Factoring?
What is Factoring?
What is factoring is a good question, because most business owners can not define factoring. If you own a business selling goods or services on credit terms then odds are your business can benefit greatly from a finical tool called factoring.

Factoring is a method of selling your accounts receivable or invoices. Factoring companies advance your business 70-90% of your invoice amounts. When your customer pays the invoice in the future the factoring company pays you the remaining 10% minus a small factoring fee. This fee is typically 1.5% to 2.5% depending on industry and other variables.

Why is factoring a popular finical too for business owners?

good question, to answer this lets use a trucking company as an example. Generally a trucking company bills its customers on credit terms such as net 30. However the trucking company has weekly expenses like tires, tolls, gasoline and beef jerky. Okay maybe they don’t spend a lot of cash on beef jerky but you get the point.

Now the trucking company will turn to a factoring company for an advance on their invoices. For example a $10,000 invoice > factoring company advances 90% ($9,000) > the customer pays the invoices in 60 days > the factoring company sends the trucking company the remaining 10% minus a factoring fee 1.5% > The trucking company paid $150 ($10,000 x 1.5%) and got their cash without waiting.

This small factoring fee is well worth it for many businesses that sell on credit because they greatly benefit from having cash in their hands without waiting. Business owners also save money by having cash in hand faster without waiting to get paid. How?

They can pay their suppliers faster and take advantage of discounts, they have cash on hand to handle marketing and new projects ect.

To see the pro’s and con’s of factoring click here or visit neebocapital.com and check out the free ebook about the pros and cons of factoring.

Good Luck!

Oil & gas Providers Factoring

This blog is written for businesses working in the oil and gas industry:
Oil & gas Providers Factoring
We all know how well the gas and oil industry has been performing. For many people, it’s been a spark of hope to push the economy forward. States that have oil sources (e.x. Pennsylvania, Ohio, Colorado), have seen an expansion in oil related industry growth and oil affiliated jobs. Most of all, this has lead to a significant increase in the amount of small businesses who provide for the oil and gas industry.

Many of these start-ups where created by individuals who have a lot of technical know how but usually not a lot of money. They start getting new business and their customers start growing. Many these start-ups in the oil and gas industry get into trouble once they realize that their company has weekly expenses however , Oil and Gas clients pay their invoices in 45 to 60 days. Sooner or later, they experience trouble paying expenses while they wait for slow paying customers to pay their bills. And that’s exactly where the factoring companies step in.

Quite a few factoring finance companies have noticed this and have started to finance oil field service businesses as an new extension of their existing factoring businesses. This area is become a powerful financing area and is going more mainstream. This makes the industry has strong customers and shows growth.

If your business is in the oil and gas industry and is in need of funding, give us a call 1-888-382-3766 or visit us online by clicking here

Accounts Receivable Financing

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To Get A Fast Quote for your Businesses Cash flow Needs
Click Here Our Factoring Company offers credit lines starting at $5K up to $50 Million. Factoring provides working capital for your business, visit our website for a fast proposal. Our 30 day rates are as low as .59%

Factoring VS Bank Loans

Just about the most common statement I hear individuals make is that factoring is far more expensive than a loan from the bank. This comparison is like comparing apples & oranges but most business owners still believe it. The reason is because factoring is a financial tool that few business owners fully understand.

banking vs factoring

First, lets make it clear that when a company can qualify for sufficient financing from a traditional bank and that is the very best financial option for the business then factoring need not to be considered.

However if a company is unable to obtain adequate financing from a bank then factoring may be a better option for small businesses.

first- Factoring is not debt financing, you don’t receive money like you will from a traditional bank. A factoring company actually purchases the invoice from your business, therefore the invoice is an asset you’re selling. These invoices must be purchased at a discount so it should not be compared to an interest rate from a line of credit.

2nd- Turnaround time for authorization for funding from your traditional bank is often longer than 2 months with alot of unnecessary pain and paperwork. Your banker has to get approvals and the underwriting team has many hurdles for you to jump over in order to get funded. With factoring you can get an account and get funded in as fast as a week and then on future invoices you can receive funding in 24 hours. Plus if you acquire additional customers the factoring company will fund you for them in 24 hours.

third- A traditional bank generally needs to see a minimum of 2 years of financial for your business as well as requires you to have collateral together with your invoices EVEN a personal guarantee. On the other hand, A factoring company can provide funding to start-up companies so long as their customers are creditworthy and all that is required is the accounts receivable and many factoring companies don’t demand a personal guarantee.

fourth- A factoring company in addition offers even more services. As opposed to a traditional bank, a factoring company constantly monitors your accounts receivable and collections. They offer credit screening for potential new clients for your company and they provide up to date aging reports to help you in getting a better handle on your receivables aging. A factoring company is also constantly advancing new funds as well as collecting outstanding invoices and your credit facility continues to grow with your new accounts.

To sum it up the big issue is not if factoring is more costly than a bank loan, because it is obvious that the two cannot be compared. As a business owner you should consider advantages of factoring vs. a bank loan.

With factoring you never be worried about out-growing your credit line or quickly spend your loan and get into debt with the bank. With factoring you can get additional capital easily when needed so your credit line grows as your business grows.

Plus if you are unable to meet orders due to insufficient working capital, then factoring offers you the cash-flow needed to complete the order. If you find your business in this situation give us a call 1-888-382-3766 or visit us online by clicking here.

Factoring Websites Claim Unreal 1% rates?

 A quick online search shows that you will find a number of factoring companies that offer what appears to be very cheap factoring rates. Based upon what you search online, you will find claims saying you can factor your invoices for only 1%. Sometimes, the rates are even lower. How can this be? And in some advertised websites, the rates appear to be cheaper than traditional bank financing.
cheap factoring rates
Just how can factoring be cheaper compared to a conventional business loan that’s only reserved for prime customers with plenty of assets?

Let us explain this for you:

The key is to recognize how nearly all factoring rates work. Even though the rates might seem to be cheaper than bank financing, often they will not be.

Why?

Well first we need to evaluate how factoring fees are commonly evaluated. Factoring company’s commonly charge you a fee that will increase the longer that a invoice remains un-paid. This is sensible, the more time an invoice goes unpaid = the greater the cost.

Below are 2 popular techniques for determining factoring fees:

1. Ten Day Fee: This is certainly the most popular factoring fee structure. In this case, the factoring company prices a fee for a 10-day period. For instance, 1.00% for every 10 days the invoice remains unpaid, this fee adds up until the customers pay the invoice in full. The fee for the first 10 days is 1.00%. The fee for the second ten days is 2.00% and etc.

2. Daily fee: This is the most basic factoring fee model you are charged a daily fee for each day that the invoice is unpaid by the customer. An example of this would be a 0.30% fee per day. This equals about 1.00% for ten days and about 3.00% for every 30 days the invoice remains unpaid.

These illustrations have got one thing in common = the cost of factoring a invoice for ten days is 1.00%. Using this information, you could say factoring is provided at rates “as low as 1%” Definitely, just make sure your invoice are paid very quickly and in ten days or less.

in the event that you are evaluating factoring proposals, you should contemplate looking at the fee structure carefully to recognize what the total cost of factoring is going to be for you. The best way to find out – check with your factoring company for the cost of factoring invoices for thirty or sixty days. That will provide you with a good measure of the actual factoring fee cost.

If your business is experiencing cash flow issues and is in need of funding, give us a call 1-888-382-3766 or visit us online by clicking here