How to Smartly Use Staffing Company Cash from Factoring

When you start your own staffing company, your startup capital is spent first on office rent and supplies, recruitment and advertising so you can get customers. But when your company begins to attract a fair amount of clients, you’ll need to grow and for that you need more staffing company cash.

While you may try to get a loan from staffing direct lenders, you may also want to try factoring instead. Your clients often pay you for your workers’ services in 30 or even 60 days, but with factoring you can get that payment (or at least 70-80% of its value) from the factor in advance.

So how should you use your available working capital? Here are some ideas:

  • Improve your website. A website for your staffing agency is one of the most convenient tools at your disposal. It serves as an advertisement for your customers so that they know what kind of personnel you’re offering and at what rates. Here you can list down all the services you can perform for your clients.

It also serves as a recruitment tool for potential workers as well. You may not even need to have your potential applicants come in to your office. Instead, they can take a few tests online to see if they have the skills you’re looking for. If they pass, your website has your address and contact information so that they can come in to your office.

  • Hire new workers. If your staffing agency is attracting more clients, you may need more workers to meet the demand. That means lots of additional expenses. Not only do you have to meet your increased payroll, but you will also need to get insurance for all your new workers. And then you also need new supplies, such as time cards, orientation material, or workplace supplies such as uniforms.

Recruitment may not always be easy, and to attract more applicants you may have to advertise for workers more extensively. You may also need to grant bonuses for referrals.

  • More training for workers. Even if you carefully screen your workers for their skills, you may need to provide more training for them. New workers will have to be taught about how you want things done, because their performance will reflect the professionalism and productivity of your staffing company. You’ll want to make sure that they are courteous as well as knowledgeable about their tasks.

You may also want to provide additional training for current workers. For example, if you’re running a janitorial service you may want to teach some of your workers how to clean carpets properly.

If you’re running a car repair service, you may want to make sure that your workers are all familiar with all the new technology that cars have every year. At the same time, you may want to teach younger mechanics about how classic cars and antiques should be handled.

As the owner of a staffing agency, you’ll find that you’ll always need more staffing company cash. Luckily for you, you can get needed capital from factoring companies if banks won’t grant you a loan.