Factoring for Staffing Agencies Creates Success
Many companies can struggle to meet payroll and operating expenses especially when they have to wait on outstanding invoices. Staffing agencies understand more than anyone the difficulty of needing quick access to working capital; and factoring for staffing agencies is the solution to this common problem.
Challenges Facing Staffing Agencies
More and more the reliance on customer payments from outstanding accounts receivables is an underlying fear for staffing agencies. Waiting anywhere from 30-90 days for payments can quickly cause operational issues. When it comes to growing payroll inefficiencies waiting several months or longer for approval by a traditional lender may not be practical.
What is Factoring for Staffing Agencies
Invoice Factoring, also known as payroll funding, provides staffing agencies with quick access to capital in order to cover payroll and operating expenses eliminating the need to rely on customer payments to sustain cash-flow.
The Invoice Factoring process is simple, a staffing agency sells their outstanding accounts receivable invoices to a factor, at a discount, and once the invoice is paid by the customer the remainder of the funds are remitted to the client within 24 hours minus a nominal fee. With quick availability to funds, your staffing agency can simplify your day-to-day operations and relieve the stress of worrying over cash flow.
Benefits of Invoice Factoring for Staffing Agencies
Invoice Factoring provides consistent cash flow for staffing agencies to overcome financial obstacles to support your business goals.
These solutions offer staffing companies:
High Advance Rates
Each factor is different when it comes to its advance rates, but Seacoast Business Funding is able to advance rates up to 95%.
Credit Based On Customers
As opposed to traditional lenders factoring and asset-based lending are based on the credit-worthiness of a staffing agencies customers and not solely on the business owner.
When it comes to fees factoring and asset-based lending are far less than those attached to credit cards and merchant cash advances.
A factor can extend credit lines quicker than traditional financing; and with the right finance partner your solution will scale with you as your agency grows.
The last thing a staffing agency wants to worry about is cash flow instead of recruiting. It is clear that Invoice Factoring and Asset-Based Lending is a great solution to cover payroll, expenses, and recruiting costs. Factoring for staffing agencies is an ideal solution to help create success for your business.
How to Get Started With Invoice Factoring for Your Staffing Agency
Contact Seacoast Business Funding today to speak with one of our client advisors on how an Invoice Factoring solution can benefit your staffing agency.