Looking for a Staffing Company Loan? (Tips )

When you run your own staffing company, it’s not always easy to monitor everything that’s going on. Things can slip down the cracks, and you may end up s in need of a staffing company loan. It may help your staffing company cash flow if you try to automate the billing process, however.

But how do you do that? Here are some suggestions offered by experienced business owners:

Hire an Accountant

Or you can outsource the entire billing process to an accounting firm. You have to admit, if you’re running your own business that doesn’t mean you’re going to be a great accountant. As the owner and manager of a staffing company, you may have been a people person who’s always delighted in seeing people find employment, and not exactly a dedicated number-cruncher.

By hiring an accountant, you spare yourself many hours of work on your billing and accounting. These things can be a distraction, when you have more important things to do which are much more suited to your skills. You can then concentrate on finding new clients for your workers, providing their training, and making sure they have all the supplies they need to do their work properly.

Synchronize Your Billing System with your Accounting System

If you insist on doing the accounting yourself, or if there’s no budget for an accountant, the least you can do is to make sure your invoicing and billing system is set up properly with your accounting platform. All the data must fit and complement one another, and all your accounts must reflect the current state of affairs.

By synchronizing your invoicing and billing with your accounting system, you save precious hours of work. What’s more, you get a more accurate idea of your company’s financial state, and you minimize the chances of error.

Be Updated with the Latest Technology

Regardless of what billing and accounting software you use now, every now and then you should go online and check out new tools available. When it comes to accounting software, things are always changing and improving. Even though you may have to learn an entirely new process, the new technology may represent a much better way of doing things for your accounting. You can’t just keep on using the same old programs.

Make It Easy for Customers to Pay

If possible, get a platform that allows your customer to pay automatically through online or mobile means. When you can accommodate a variety of payment methods, you give your clients fewer reasons not to pay on time. Making things easy for your customers benefit you as well.

Don’t Forget to Add a Personal Touch

Instead of sending cold collection mails and payment reminders, you may want to use a more friendly personal emails instead. It’s been demonstrated that often a personal email is much more effective in encouraging customers to stay on track than a coldly professional automated message.

It’s not unusual for your business to need a staffing company loan every now and then. But by automating your billing properly, you may not need a loan as often as you think.

The Five Keys to Obtaining a Staffing Company Loan

It’s not always easy to get a staffing company loan from a bank or from any other lending institution. It takes a lot of time to process, and your chances of actually getting a loan may not be as high as you’ve hoped. But it’s very common to need more staffing agency funding especially when your company grows and acquires more clients, so you may need to either persist in getting a loan or try to get funding from factoring companies instead.

So if you’re determined to get a loan, here are some of the considerations to which you need to pay particular attention:


Who are you and why should a lender lend you money? When you apply for a loan from a bank, you need to convince them that you have the character and the skill to pay back what you borrow.

That starts with looking professional, and you need to prove it in other ways as well. You have to provide records and proof about your educational attainment and work history. Your personal credit must be outstanding, and it will really help if you have excellent references from the people with whom you’ve done business in the past.

Business Conditions

You’re going to need a business plan, as well as any formal analyses you have regarding your industry. Your bank will want to know how you view the trends in your particular industry, whether you’re providing personnel for IT, for security guards, or for janitors.

You’re also going to have to explain how you plan to use the loan, and how you plan to repay the money in light of current economic conditions in your industry and your area.


A potential lender will also take a very close look at your financial state. Just how much in assets do you own, and how much debt do you carry? What are your current expenses, sales, and profit margins? How is the state of your company’s cash flow? Do you always pay your bills on time?

Aside from looking for evidence that you have the means to pay back the loan, the bank will also want to know your personal investment in the company. For example, if you’re just starting a staffing agency, the bank would feel better if you already have some money stored away to use, and you’re asking for a loan to add to that money. It shows that you’re seriously committed to your business. Banks, however, may not lend you money if you didn’t even bother saving some money to help fund your business.


This is often a problem for staffing agencies, since your company doesn’t usually have much in terms of assets and expensive equipment. You may have to offer a personal guarantee for the loan. Usually, you will have to put your own personal assets up as security. So if you have full ownership of your home, you will usually have to offer that as collateral..

With all these things to consider, it’s easy to see why factoring has become so popular! But if you look good in all these areas, then you stand a very good chance of getting that staffing company loan you need.

Trying to Get a Staffing Company Loan? Find Out Why Your Business Credit Rating May Be Too Low

When you’re running your own staffing company, it’s common to run out of working capital to cover payroll especially when you have lots of new clients. Sooner or later you’re going to need a staffing company loan. But you may not get the loan you need if your business credit rating is too low to qualify. This is the reason why small business factoring invoice for funding has become more popular, as your credit doesn’t matter as much as the creditworthiness of your customers.

When you’re trying to secure a loan, your business credit standing is crucial. What you may not know is that you may be inadvertently contributing to the low business credit score. Here are some possible mistakes you may be committing:

  1. You only depend on personal credit. It’s understandable to use personal savings and credit cards to start a business. But as soon as possible, you need to open one or two business credit cards. It has to be in the company’s name. While the credit line may not be large at first, what you’re really trying to do is establish a credit worthy profile. When you build your business credit, you increase your chances of getting a loan for your company in the future.
  2. You don’t regularly monitor your business credit. With so many hackers and identity thieves operating these days, you should really keep a constant eye out on your business credit. You can’t just check it when you need it, such as when it’s time to borrow money. Credit scores don’t really fluctuate wildly, so you can be notified right away when your credit score suddenly drops. You can then take measures to deal with the problem right away.

Monitoring your credit doesn’t have to be too much trouble for you. There are some monitoring tools you can use which will alert you when your credit score changes and some of these tools are even free to use.

  1. You don’t check for factual mistakes. It may surprise you to find out that a significant number of small business owners have discovered mistakes in their credit reports. One report published in the Wall Street Journal revealed that of the businesses that checked their credit reports, fully a quarter of them found errors or missed financial data that made them seem riskier to lend to.

So when you get your credit reports from credit bureaus, take some time to review the data to see that it doesn’t have any mistakes that damage your credit score. Check that the revenue figures are up to date, and your company is in the right industry classification code.

  1. You don’t pay your bills on time. For a business, paying late can have serious consequences. While you may think nothing of paying a day late in your personal life, in business paying late for just one day can adversely affect your credit score. So don’t pay late. Better yet, pay early because doing so may actually increase your credit score!

Your business credit is just one factor that will be checked when you apply for a staffing company loan. But having a very low business credit score may be enough for you to fail in getting the funding you need.

The Challenges of Securing a Staffing Company Loan

Staffing companies often need substantial amounts of cash to get started and also to fund day to day operations. By its very nature, staffing companies need to pay its workers on a weekly basis, but it’s not uncommon for its clients to take almost two months before they pay for the services they availed. This often leads to working capital shortage which explains the need for a staffing company loan.

The Special Needs of Staffing Companies

Like any business, a staffing company needs sizeable capital to set up their business. They have to pay the usual registration fees as well as set aside money for office rent, furniture, and utilities. But obviously they also need to hire (and pay) staffing personnel and these workers don’t just grow on trees.

They have to recruit workers and that means paying for advertising and even recruitment companies and headhunters. Then the workers must also be screened and oftentimes additional training is provided. Then there are also the insurance payments and the taxes to consider.

In short, running a staffing company can really drain the working capital cash.

Additional problems can exist too, especially when current economic situations are not so favorable. For example, your staffing company clientele may begin to hire workers full-time instead of relying on you to provide them with workers on a contract-basis. And workers may also leave your employ when they find permanent job positions in other companies.

And even if you can cover your current work requirements, new customers and demands for more workers mean that you need to hire more people to meet the increased demand, and that means you’ll need more funding.

Getting a Bank Loan

A bank loan is often the first option you think of when you need extra working capital. But securing a loan is not an easy proposition for a small business, and that’s especially true for a staffing company. You usually don’t have enough assets that you can use as collateral, and banks are always hesitant to grant loans to companies that have difficulty meeting their own staff’s payroll.

And even if you’re lucky and you do get the loan you need from your bank, the entire process will take a lot of time. For emergency funding to cover payroll, this delay makes bank loans very impractical.

So how are these problems overcome? Actually, more often than not these problems are virtually insurmountable. This is a fact that many staffing companies realize too late. A staffing company loan is extremely difficult to secure from banks and other traditional lenders.

And it’s for that reason why more creative financing possibilities must be explored if a staffing company wants to survive. Factoring is one of these possible solutions, and it has proven quite useful for many staffing companies.

Factoring is very easy to secure, and you get your funding much faster too. In addition, it’s not technically a staffing company loan at all, so your credit is largely unaffected by the transaction. With factoring, you can get the funding you need at the time you really need it, and this can help your company stay afloat during lean times and foster growth when the opportunities present themselves.

Need Working Capital? Call 1-888-382-3766 or visit our main site for an instant quote by clicking here